PepsiCo Acquires Poppi for Nearly $2 Billion

PepsiCo has announced the acquisition of Poppi, a health-focused soda brand known for its prebiotic beverages, for approximately $1.65 billion. This deal, which includes $300 million in tax benefits, highlights Pepsi's strategy to expand its portfolio into healthier drink options amidst growing competition from Coca-Cola. Poppi, founded in 2018 by Stephen and Allison Ellsworth, gained significant visibility after appearing on 'Shark Tank,' although it faced rejection from several investors at that time. The brand has grown steadily, recently featuring in Super Bowl commercials and capturing about 1% of the carbonated soft drink market. However, Poppi has encountered challenges, including a class action lawsuit regarding its health claims, which is set to be settled for $8.9 million. Analysts suggest the acquisition positions PepsiCo well within the modern soda segment, appealing to health-conscious consumers.