Pepsico said on Monday that Poppi is buying from the prebiotic soda brand for almost $ 2 billion.
Although the consumption of soft drinks has fallen widely in the last two decades in the US, the prebiotic soft drinks, fed by the newcomers of the Poppi and Olipop industry, have earned consumers conscious of health in the last five years. The growth of the category makes it attractive to Pepsi and its rival, Coca-Cola, which recently launched its own prebiotic soda brand, simply pop.
Pepsi said he plans to acquire the Poppi upstart for $ 1.95 billion. The agreement includes $ 300 million in advance of cash taxes, which makes the net purchase price $ 1.65 billion.
Pepsi will also have to make additional payments if Poppi achieves certain performance milestones within a period of time established after the acquisition is closed.
Pepsi did not say when the agreement is expected to be closed, waiting for regulatory approval.
The founders of Poppi, Allison and Stephen Ellsworth, launched the brand in 2018, the same year Olipop was founded. Poppi formula includes apple vinegar, prebiotics and only five grams of sugar.
The company recently made its second consecutive appearance in the Super Bowl with an announcement during the great game, demonstrating its deep pockets and a desire to reach an even broader audience.
But as Poppi sales have grown up, it has also attracted a violent reaction for their health claims. Currently, the company is in conversations to resolve a demand that argued that Poppi drinks are not as healthy as the company states, according to judicial presentations.
For its part, the opponent Olipop was valued at $ 1.85 billion during its last round of financing, which was announced in February. In 2023, the founder and CEO of Olipop, Ben Goodwin, told CNBC that the Pepsic and Coca-Cola soda giants had already called for a potential sale.
