PepsiCo, Inc. (NASDAQ:PEP) has officially completed its acquisition of Poppi for a significant sum of $1.95 billion. This figure includes an expected $300 million in cash tax benefits, effectively lowering the net purchase price to approximately $1.65 billion. The acquisition deal also contains a performance-based earnout structure, tied to specific growth objectives, indicating PepsiCo’s serious commitment to integrating Poppi into its expanding portfolio.
Poppi, best known for its innovative line of prebiotic sodas, marks another significant acquisition in PepsiCo’s drive to cater to the growing consumer demand for health-focused beverages. This latest move aligns with previous acquisitions of brands like Siete and Sabra, emphasizing a strategic pivot towards wellness-oriented offerings. Since its initial announcement of the acquisition deal in March, PepsiCo has been positioning itself to not just meet but anticipate the evolving tastes of health-conscious consumers.
Founded in 2018 by Allison and Stephen Ellsworth, Poppi’s drinks are crafted with wholesome ingredients, including apple cider vinegar, prebiotics, and only five grams of sugar. As traditional soda consumption has seen a notable decline in the U.S. over the last two decades, healthier alternatives like Poppi are swiftly gaining traction among a demographic increasingly focused on wellness.
Ram Krishnan, CEO of PepsiCo Beverages U.S., expressed enthusiasm for the acquisition, stating:
“Poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages. Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are excited to scale Poppi’s momentum and unlock new growth through our capabilities – we’re just getting started.”
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