PepsiCo announced on Monday that it will acquire prebiotic soda brand Poppi for $1.95 billion, marking a significant expansion into the healthier beverage market. The move comes as the company faces declining demand for traditional sodas and snacks, driven by changing consumer preferences and multiple price hikes.
With this acquisition, PepsiCo strengthens its position in the functional drinks category, which has seen rising popularity among health-conscious consumers. Poppi, known for its gut-friendly, prebiotic sodas made with apple cider vinegar, has gained traction as a healthier alternative to conventional carbonated drinks.
Strategic Expansion in the Health Beverage Market
The deal also includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion, according to PepsiCo. The move aligns with the company’s strategy to diversify its portfolio beyond sugary sodas and ultra-processed snacks.
With consumers increasingly shifting toward low-sugar, natural, and gut-health-focused products, PepsiCo’s investment in Poppi is expected to boost sales and attract a new segment of health-conscious buyers. The acquisition follows a growing trend of beverage giants investing in functional and wellness-driven drinks.
As demand for traditional sodas declines, this acquisition marks a pivotal shift for PepsiCo, reinforcing its commitment to adapting to evolving market trends and consumer preferences.
