Soda Poppi cans are presented inside a store on March 17, 2025 in New York.
Spencer Platt | Getty Images News | Getty images
Pepsico said on Monday that he buys a prebiotic soda brand for nearly $ 2 billion.
While soda consumption has largely fallen over the past two decades in the United States, prebiotic sodas, fueled by new arrivals from Poppi and Olipop industry, have conquered consumers concerned about their health in the past five years.
The growth of the category makes him attractive for Pepsi and his rival, Coca-ColaWho recently launched his own brand of prebiotic soda, simply pop. Pepsi would have aimed to launch his own functional soda under his brand Soulboost, but he canceled these plans, probably paving the way for an agreement with Poppi.
Pepsi said he was planning to acquire the Poppi Upstart for $ 1.95 billion. The agreement includes 300 million dollars of expected cash tax services, which makes the net purchase price $ 1.65 billion.
Pepsi will also have to make additional payments if Poppi reaches certain performance steps within a defined time after the acquisition is closed. The company has not said when the agreement should conclude, pending regulatory approval.
The founders of Poppi, Allison and Stephen Ellsworth, launched the brand in 2018, the same year that Olipop was founded. Poppi’s formula includes apple cider vinegar, prebiotics and only five grams of sugar.
By 2023, the annual sales of Poppi would have crossed $ 100 million.
The company recently made its second consecutive appearance to the Super Bowl with an ad during the Big Game, demonstrating both its deep pockets and the desire to reach an even wider audience.
But as Poppi sales have increased, he also attracted the backlash for his health claims. For example, the company faced a collective appeal which alleged that its drinks were not as healthy as its packaging claimed it. Poppi and the applicant decided to set the complaint on Friday for $ 8.9 million, according to court documents.
For its part, its rival Olipop was evaluated 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 giants of Soda Pepsico and Coca-Cola had already struck a potential sale.