Poppi says it mixes apple cider vinegar and prebiotics with just 5 grams of sugar|@drinkpoppi|X
PepsiCo announced on Monday that it is buying prebiotic soda brand Poppi for $1.95 billion. The move reflects growing consumer interest in gut-friendly drinks.
Investors agree. Pepsi’s shares rose nearly 2% after the announcement.
Launched in 2018, in the next five years, Poppi reported its annual sales surpassed $100 million. The brand says it mixes apple cider vinegar and prebiotics with just 5 grams of sugar.
The Pepsi deal includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion.
Pepsi may also make additional payments if Poppi hits certain performance milestones post-acquisition.
However, not all has been positive. Last week, the brand settled an $8.9 million lawsuit over misleading health claims.
Meanwhile, rival Olipop was valued at $1.85 billion in a funding round in February, proving the healthy soda shake-up is far from over.
Sales of probiotic sodas in the US surged to approximately $820 million, accounting for about 2% of the $42.4 billion US soft drink market, per Fortune.