PepsiCo's Billion-Dollar Bet on Poppi: A Functional Beverage Revolution

PepsiCo has acquired the functional beverage brand Poppi for $1.95 billion, marking a significant expansion in the health-focused drink market. Poppi, known for its prebiotic sodas, was co-founded by Allison Ellsworth and gained traction after a 'Shark Tank' appearance. The partnership aims to broaden Poppi's reach globally.

In a strategic move to capitalize on the growing health-conscious beverage market, PepsiCo announced its acquisition of the prebiotic soda brand Poppi for $1.95 billion. This acquisition is a significant addition to PepsiCo's portfolio, giving them a foothold in the popular functional beverage category.

Chairman and CEO Ramon Laguarta noted the increasing consumer demand for health-oriented beverages, highlighting Poppi's appeal as both a convenient and flavorful option for consumers. The transaction is set to include $300 million in anticipated cash benefits, reducing the net purchase price to $1.65 billion.

Co-founder Allison Ellsworth, who originally developed Poppi in her kitchen under the name Mother Beverage, expressed excitement about the growth potential with PepsiCo's backing. Despite a class-action lawsuit filed last summer, Poppi's expansion aims to reach more consumers globally, underlining the promising prospects of the partnership.

(With inputs from agencies.)