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Key Takeaways
- PepsiCo has agreed to acquire prebiotic soda brand Poppi, the snack and beverage giant said Monday.
- The deal is worth $1.65 billion, with another $300 million in expected cash tax benefits putting its value near $2 billion.
- Poppi and other prebiotic sodas offer more fiber and lower sugar contents than traditional soda options.
PepsiCo (PEP) will acquire prebiotic soda brand Poppi for $1.65 billion, the snack and beverage giant said Monday.
PepsiCo said the deal includes expected cash tax benefits of some $300 million, putting its total value just shy of $2 billion.
The probiotic beverages like Poppi and rival Ollipop come with lower amounts of sugar and higher fiber content because of ingredients that can improve gut health, according to the Cleveland Clinic.
“As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand’s unique intersection with wellness and culture is a perfect addition to our portfolio,” PepsiCo Beverages U.S. CEO Ram Krishnan said.
The deal also includes the possibility of future payments “subject to the achievement of certain performance milestones within a specified period,” PepsiCo said. The beverage and snack maker didn’t provide a timeline for when it expects the deal to be closed.
PepsiCo shares were up more than 1.5% Monday morning, and are down about 8% over the last 12 months.
