Pepsico Buy the Poppi Prebiotic Soda brand for almost $ 2 billion

Pepsic He said Monday which is buying poppi from the prebiotic brand of Soda for almost $ 2 billion.

While soft drinks has fallen widely in the last two decades in the United States, prebiotic soft drinks, driven by newcomers from the Poppi and Olipop industry, have earned consumers aware of health in the last five years.

The category growth makes it attractive to Pepsi and its rival, Coca-colawhich recently launched its own prebiotic Soda brand, simply pop. Pepsi had As reported by To launch its own functional soda under its soulboost brand, but canceled those plans, probably racing the path to an agreement with Poppi.

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. The company 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.

By 2023, annual Poppi sales crossed $ 100 million.

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. For example, the company faced a collective claim that alleged that its drinks were not as healthy as its packaging said. Poppi and the plaintiff moved to resolve the claim on Friday for $ 8.9 million, according to judicial documents.

For its part, rival Olipop was valued at $ 1.85 billion During its last financing round, 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.