1 of 2 | PepsiCo. Inc. announced plans Monday to acquire the poppi line of soda for nearly $2 billion. Image courtesy of PepsiCo Inc.
March 17 (UPI) — PepsiCo Inc. announced Monday plans to acquire the Shark Tank-inspired probiotic soda brand poppi in a nearly $2 billion deal.
“We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,” Ramon Laguarta, PepsiCo’s chairman and CEO, said in a release.
Officials say the $1.95 billion deal will include $300 million in anticipated cash tax benefits for a net purchase price of $1.65 billion. Additionally, it will include the possibility of further earnings subject to certain business performance milestones in a specific period of time following the transaction’s closing.
However, additional terms of the acquisition for the Texas-based beverage company were not disclosed, and the transaction is subject to customary closing conditions, including approval by regulatory agencies.
PepsiCo provides food and beverage products in 200 nations and territories, which generated more than $91 billion in net revenues in 2023. Its best-known products include Pepsi-Cola, Doritos, Lay’s and Quaker.
It comes on top of a 2016 pledge to reduce the calorie counts of its beverages and lower its environmental impact by this year.
“More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,” Laguarta added Monday. He said poppi is a “great complement to our portfolio transformation efforts to meet these needs.”
Poppi combines prebiotics, fruit juice and apple cider vinegar to create a low-calorie soda with no more than 5 grams of sugar per serving. Its annual sales reportedly crossed the $100 million mark by 2023.
“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,” according to Ram Krishnan, CEO of PepsiCo Beverages U.S.
PepsiCo, headquartered in New York, took over Rockstar Energy Beverages in 2020 in a $3.8 billion acquisition as it delved further into the energy drink market with its other brands, such as Mountain Dew’s Kickstart, GameFuel, AMP, then two years later obtained a $550 million stake in Celsius.
In 2015, it generated more than $63 billion in net revenue, and people consumed its products 1 billion times a day, according to the company. By last year, it was netting nearly $92 billion in revenue.
In October, the global food giant paid $1.2 billion to buy the Mexican-American food brand Siete Foods.