PepsiCo, Inc. has completed its acquisition of poppi for $1.95 billion, which includes an anticipated $300 million in cash tax benefits, resulting in a net purchase price of $1.65 billion. The deal also features a performance-based earnout tied to the achievement of specific performance metrics.
This acquisition represents a pivotal move in PepsiCo’s ongoing portfolio transformation, underscoring its commitment to delivering great-tasting, functional products that align with evolving consumer preferences. poppi, a rapidly growing prebiotic soda brand, joins a lineup of strategic acquisitions—including Siete and Sabra—reflecting PepsiCo’s focus on modern wellness and better-for-you offerings.
“poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages,” said Ram Krishnan, CEO of PepsiCo Beverages U.S. “Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are excited to scale poppi’s momentum and unlock new growth through our capabilities – we’re just getting started.”
On a mission to modernize soda for the next generation, poppi is a fast-growing functional soda brand made with prebiotics, fruit juice, and apple cider vinegar – offering a refreshing, low-calorie drink with no more than five grams of sugar per serving. poppi has taken a community- and culture-first approach – from vibrant packaging to a strong social media presence, viral TikTok campaigns, and influencer partnerships – all of which have cultivated a loyal community and effectively engaged Gen Z and millennial audiences.
“PepsiCo’s belief in the poppi brand is a tremendous validation of the work we’ve done to advance our mission,” said Chris Hall, CEO of poppi. “Their partnership and resources will be instrumental as we scale to our next phase of growth. We’re incredibly grateful to our passionate community and look forward to welcoming even more consumers into the poppi portfolio.”
Centerview Partners LLC acted as lead financial advisor to PepsiCo, and J.P. Morgan Securities LLC also served as a financial advisor to PepsiCo. Cravath, Swaine & Moore LLP acted as legal advisor to PepsiCo, and Davis Polk & Wardwell LLP acted as tax counsel to PepsiCo. Goldman Sachs & Co. LLC acted as financial advisor to poppi, and Cooley LLP acted as legal advisor to poppi.
