By Dee-Ann Durbin, AP Business Writer
PepsiCo said Monday it is acquiring prebiotic soda brand Poppi for $1.95 billion.
With this acquisition, Pepsico offers a rapidly growing brand in the popular feature beverage category.
“More than ever, consumers are looking for convenient and fantastic fashionable options that will tailor their lifestyles to accommodate the growing interest in health and wellness,” PepsiCo Chairman and CEO Ramon Ragualta said in a statement.
Pepsico said the transaction includes an expected cash allowance of $300 million, bringing the net purchase price to $1.65 billion.
Alison Ellsworth, co-founder of Austin, Texas-based Poppi, said the combination with PepsiCo would expand Poppi’s scope.
“We can’t wait to start this next chapter at PepsiCo. We can bring soda to more people, and we know that we respect that they are making Popi special while supporting the next stage of growth and innovation,” Ellsworth said in a statement.
Ellsworth loved soda but was tired of the way it made her feel, so she developed Poppi in the kitchen in 2015. She mixed fruit juice with apple cider vinegar, sparkling water and prebiotics and sold drinks at the farmers market.
The brand took off in 2018 when Ellsworth and her husband pitched it on “Shark Tank.” Show investor Rohan Oza took stock in his mother’s drink and took on a big brand. Poppi was born with its brightly coloured fruit forward cans.
“We are excited to partner with PepsiCo so that even more consumers in the US and around the world can enjoy Poppi,” said Oza, co-founder of Cavu Convers Partners, which also invests in beverage brands like Oatly and Bai.
But it wasn’t all a smooth voyage for Poppi. Several class action lawsuits were filed against the brand last summer by consumers who said the product didn’t improve gut health as much as marketing suggests.
Poppi denied these claims and noted that it removed references to “Gut Health” in late 2023. However, according to a court application last week, Poppi agreed to a settlement that includes a $8.9 million fund for payments to consumers. A settlement hearing is scheduled for May 8th.
PepsiCo shares rose almost 2% in trading Monday morning.
Original issue: March 17th, 2025, 12:24pm EDT
