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PepsiCo to Acquire Healthy Soda Brand Poppi For $1.65 Billion
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Key Points
- Snacks and beverage giant said on Monday that Pepsi has agreed to acquire prebiotics’ soda Poppi.
- The deal is worth $1.65 billion, with an additional $300 million in expected cash tax benefits bringing it worth nearly $2 billion.
- POPPI and other prebiotic sodas provide lower fiber and sugar content than traditional sodas.
PepsiCola (pepSnacks and beverage giant said on Monday it will acquire probiotic soda brand Poppi for $1.65 billion.
Pepsi said the deal included about $300 million in expected cash tax benefits, with a total value of just $2 billion.
According to the Cleveland Clinic, probiotic drinks and competitor Ollipop are lower in sugar and higher in fiber because the ingredients can improve gut health.
“The unique intersection of the Poppi brand with health and culture is the perfect complement to our portfolio when we want to reposition our portfolio to meet the needs of the blank consumer,” said Ram Krishnan, our CEO of Pepsi Beverages.
Pepsi said the deal also includes the possibility of future payments “to achieve certain performance milestones within a specified period.” There was no timeline provided when beverage and snack manufacturers expect to reach a deal.
Pepsi shares rose more than 1.5% and fell about 8% over the past 12 months.
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