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PepsiCo has finalised an agreement to purchase poppi, a popular prebiotic soda company, for $1.95 billion. This acquisition will also provide PepsiCo with an estimated $300 million in cash tax benefits, bringing the net purchase price to $1.65 billion. The deal includes a provision for additional payments contingent on poppi meeting specific performance goals within a set timeframe following the acquisition’s completion.
Ramon Laguarta, Chairman and CEO of PepsiCo, said, “We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers.”
He added, “More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. poppi is a great complement to our portfolio transformation efforts to meet these needs.”
poppi’s Rapid Growth and Market Success
Poppi is a fast-growing functional soda brand that combines prebiotics, fruit juice, and apple cider vinegar to create a deliciously refreshing low-calorie soda with no more than five grams of sugar per serving. poppi’s consumer-first approach, cultural cache, and nutritional profile have nurtured a loyal fan base and driven rapid growth. poppi was created by Allison and Stephen Ellsworth, discovered on Shark Tank by Rohan Oza and funded by CAVU Consumer
Ram Krishnan, CEO of PepsiCo Beverages U.S., stated, “As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand’s unique intersection with wellness and culture is a perfect addition to our portfolio.”
“Allison and the poppi team have built a magnetic brand ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand, paired with our commercial capabilities, will drive continued growth and innovation for years to come.”
poppi co-founder Allison Ellsworth expressed excitement about PepsiCo’s acquisition, highlighting the brand’s humble beginnings and its mission to create a “better-for-you soda.” She thanked the poppi team, partners, and community and voiced confidence that PepsiCo will honour poppi’s unique qualities while fostering its growth. Ellsworth also hoped their story would inspire others to pursue their passions.
The transaction is subject to customary closing conditions, including regulatory approval. Additional terms of the acquisition were not disclosed.
According to the official statement, Centerview Partners LLC is acting as the lead financial advisor to PepsiCo, and J.P. Morgan Securities LLC is also acting as a financial advisor to PepsiCo. Cravath, Swaine & Moore LLP is acting as legal advisor to PepsiCo, and Davis Polk & Wardwell LLP is acting as tax counsel to PepsiCo. Goldman Sachs & Co. LLC is acting as financial advisor to poppi, and Cooley LLP is acting as legal advisor to poppi.
