PepsiCo to Acquire poppi
PepsiCo (NASDAQ: PEP) has announced plans to acquire poppi, a prebiotic soda brand, for $1.95 billion, with a net purchase price of $1.65 billion after anticipated cash tax benefits of $300 million. The deal includes potential additional earnout based on performance milestones.
poppi is a functional soda brand that combines prebiotics, fruit juice, and apple cider vinegar, offering low-calorie beverages with no more than five grams of sugar per serving. The brand, created by Allison and Stephen Ellsworth, gained prominence after appearing on Shark Tank and receiving funding from CAVU Consumer Partners.
The acquisition aligns with PepsiCo's portfolio transformation strategy to meet growing consumer demand for health and wellness products. The transaction is pending customary closing conditions and regulatory approval.
PepsiCo (NASDAQ: PEP) ha annunciato piani per acquisire poppi, un marchio di soda prebiotica, per 1,95 miliardi di dollari, con un prezzo di acquisto netto di 1,65 miliardi di dollari dopo i benefici fiscali in contante previsti di 300 milioni di dollari. L'accordo include un potenziale earnout aggiuntivo basato su traguardi di performance.
poppi è un marchio di soda funzionale che combina prebiotici, succo di frutta e aceto di mele, offrendo bevande a basso contenuto calorico con non più di cinque grammi di zucchero per porzione. Il marchio, creato da Allison e Stephen Ellsworth, ha guadagnato notorietà dopo essere apparso su Shark Tank e aver ricevuto finanziamenti da CAVU Consumer Partners.
L'acquisizione si allinea con la strategia di trasformazione del portafoglio di PepsiCo per soddisfare la crescente domanda dei consumatori di prodotti per la salute e il benessere. La transazione è in attesa delle consuete condizioni di chiusura e dell'approvazione normativa.
PepsiCo (NASDAQ: PEP) ha anunciado planes para adquirir poppi, una marca de soda prebiótica, por 1.95 mil millones de dólares, con un precio de compra neto de 1.65 mil millones de dólares después de los beneficios fiscales en efectivo anticipados de 300 millones de dólares. El acuerdo incluye un posible earnout adicional basado en hitos de rendimiento.
poppi es una marca de soda funcional que combina prebióticos, jugo de fruta y vinagre de manzana, ofreciendo bebidas bajas en calorías con no más de cinco gramos de azúcar por porción. La marca, creada por Allison y Stephen Ellsworth, ganó prominencia después de aparecer en Shark Tank y recibir financiamiento de CAVU Consumer Partners.
La adquisición se alinea con la estrategia de transformación del portafolio de PepsiCo para satisfacer la creciente demanda de los consumidores de productos de salud y bienestar. La transacción está pendiente de las condiciones habituales de cierre y la aprobación regulatoria.
펩시코 (NASDAQ: PEP)는 poppi, 프리바이오틱 소다 브랜드를 19억 5천만 달러에 인수할 계획을 발표했습니다. 세금 혜택을 고려한 순 매입 가격은 16억 5천만 달러입니다. 이 거래에는 성과 기준에 따른 추가적인 수익이 포함될 수 있습니다.
poppi는 프리바이오틱, 과일 주스 및 사과 식초를 결합한 기능성 소다 브랜드로, 1회 제공량당 5그램 이하의 설탕을 포함한 저칼로리 음료를 제공합니다. 앨리슨과 스티븐 엘스워스가 만든 이 브랜드는 샤크 탱크에 출연하고 CAVU Consumer Partners로부터 자금을 지원받은 후 주목받게 되었습니다.
이번 인수는 건강 및 웰빙 제품에 대한 소비자 수요 증가에 대응하기 위한 펩시코의 포트폴리오 변환 전략과 일치합니다. 이 거래는 일반적인 마감 조건과 규제 승인을 기다리고 있습니다.
PepsiCo (NASDAQ: PEP) a annoncé son intention d'acquérir poppi, une marque de soda prébiotique, pour 1,95 milliard de dollars, avec un prix d'achat net de 1,65 milliard de dollars après les avantages fiscaux en espèces anticipés de 300 millions de dollars. L'accord comprend un éventuel earnout supplémentaire basé sur des jalons de performance.
poppi est une marque de soda fonctionnelle qui combine des prébiotiques, du jus de fruits et du vinaigre de cidre de pomme, offrant des boissons faibles en calories avec pas plus de cinq grammes de sucre par portion. La marque, créée par Allison et Stephen Ellsworth, a gagné en notoriété après son apparition dans Shark Tank et avoir reçu un financement de CAVU Consumer Partners.
L'acquisition s'inscrit dans la stratégie de transformation du portefeuille de PepsiCo pour répondre à la demande croissante des consommateurs en matière de produits de santé et de bien-être. La transaction est en attente des conditions de clôture habituelles et de l'approbation réglementaire.
PepsiCo (NASDAQ: PEP) hat Pläne angekündigt, poppi, eine präbiotische Limonadenmarke, für 1,95 Milliarden Dollar zu übernehmen, mit einem Nettokaufpreis von 1,65 Milliarden Dollar nach den erwarteten steuerlichen Barvorteilen von 300 Millionen Dollar. Der Deal umfasst potenzielle zusätzliche Earnouts basierend auf Leistungsmeilensteinen.
poppi ist eine funktionale Limonadenmarke, die Präbiotika, Fruchtsaft und Apfelessig kombiniert und kalorienarme Getränke mit nicht mehr als fünf Gramm Zucker pro Portion anbietet. Die Marke, die von Allison und Stephen Ellsworth gegründet wurde, erlangte Bekanntheit, nachdem sie in Shark Tank aufgetreten war und Finanzierung von CAVU Consumer Partners erhalten hatte.
Die Übernahme steht im Einklang mit der Transformationsstrategie von PepsiCo, um der wachsenden Nachfrage der Verbraucher nach Gesundheits- und Wellnessprodukten gerecht zu werden. Die Transaktion steht noch unter dem Vorbehalt üblicher Abschlussbedingungen und der Genehmigung durch die Aufsichtsbehörden.
- Strategic expansion into fast-growing functional beverage market
- Acquisition adds low-calorie, better-for-you product line to portfolio
- Additional revenue potential through earnout structure
- Immediate access to loyal customer base and established brand
- Significant capital outlay of $1.95 billion
- Regulatory approval pending and could delay completion
- Integration costs and risks not disclosed
Insights
PepsiCo's $1.95 billion acquisition of poppi represents a strategic expansion into the growing functional beverage category, with the deal structure including $300 million in tax benefits for a net purchase price of $1.65 billion. The transaction also includes performance-based earnout provisions that limit PepsiCo's upfront financial commitment while incentivizing poppi's continued growth trajectory.
This acquisition aligns with PepsiCo's portfolio diversification strategy, addressing shifting consumer preferences toward better-for-you options with functional benefits. For a company with a
The deal structure demonstrates financial discipline - the tax-efficient approach and earnout mechanism protect downside risk while providing upside potential if performance targets are met. While specific revenue figures for poppi aren't disclosed, the acquisition gives PepsiCo immediate entry into the premium functional soda segment without the time investment of internal brand development.
For PepsiCo investors, this acquisition represents a calculated expansion of the company's addressable market, potentially attracting health-conscious consumers who avoid traditional sodas. The transaction's impact should be evaluated in the context of PepsiCo's broader portfolio transformation strategy rather than immediate financial returns.
This acquisition positions PepsiCo at the intersection of two powerful consumer trends: functional beverages and gut health awareness. poppi's unique formula combining prebiotics and apple cider vinegar with no more than five grams of sugar per serving directly addresses the growing consumer segment seeking beverages with perceived health benefits beyond hydration.
The strategic importance here extends beyond the product itself to poppi's brand equity and cultural relevance. The brand's journey from kitchen creation to Shark Tank to acquisition exemplifies the authentic brand story that resonates with younger consumers who prioritize transparency and founder-led narratives.
PepsiCo's challenge will be maintaining poppi's entrepreneurial culture and perceived authenticity while leveraging its distribution network and scaling capabilities. The reference to poppi's "magnetic brand" and "cultural cache" suggests PepsiCo recognizes the importance of preserving these intangible assets post-acquisition.
This move follows the evolving playbook of major beverage companies acquiring emerging brands with health positioning rather than attempting to reposition legacy brands. The acquisition gives PepsiCo a turnkey solution to address the "white space consumer needs" referenced by Ram Krishnan, particularly among wellness-focused consumers who have migrated away from traditional sodas. The transaction signals PepsiCo's commitment to evolving alongside changing consumer preferences rather than defending legacy categories exclusively.
- Company continues to evolve its portfolio through innovation and strategic acquisitions
- Company expands better-for-you offerings to meet consumer preferences and continue to serve new generations of consumers
"We've been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers," said Ramon Laguarta, Chairman and CEO, PepsiCo. "More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. poppi is a great complement to our portfolio transformation efforts to meet these needs."
poppi is a fast-growing functional soda brand that combines prebiotics, fruit juice, and apple cider vinegar to create a deliciously refreshing low calorie soda with no more than five grams of sugar per serving. poppi's consumer-first approach, cultural cache, and nutritional profile have nurtured a loyal fan base and driven rapid growth. poppi was created by Allison and Stephen Ellsworth, discovered on Shark Tank by Rohan Oza and funded by CAVU Consumer Partners from their initial seed round to today.
"As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand's unique intersection with wellness and culture is a perfect addition to our portfolio," said Ram Krishnan, CEO, PepsiCo Beverages
"When I created poppi in our kitchen, it was fueled by a desire to create a better-for-you soda," said Allison Ellsworth, Co-Founder of poppi. "We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional soda that stands the test of time. We believe poppi is the soda that will be embraced for generations to come, and we're beyond grateful to the amazing poppi team, our partners who believed in us from the very beginning and most importantly our incredible community. We can't wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes poppi so special while supporting our next phase of growth and innovation. I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible."
"poppi is a true testament to the American Dream! From the kitchen to Shark Tank to becoming an iconic brand, this couldn't have been done without the amazing founders Allison and Stephen Ellsworth, the incredible team in place led by CEO Chris Hall, the unmatched support of CAVU's Uncommon team led by Stevie Clements, and the extraordinary poppi community," said Rohan Oza, Guest Shark on ABC's Shark Tank and Co-Founder at CAVU Consumer Partners. "We're beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy poppi – a truly modern soda for the next generation."
The transaction is subject to customary closing conditions, including regulatory approval. Additional terms of the acquisition were not disclosed.
Centerview Partners LLC is acting as lead financial advisor to PepsiCo, and J.P. Morgan Securities LLC is also acting as a financial advisor to PepsiCo. Cravath, Swaine & Moore LLP is acting as legal advisor to PepsiCo, and Davis Polk & Wardwell LLP is acting as tax counsel to PepsiCo. Goldman Sachs & Co. LLC is acting as financial advisor to poppi, and Cooley LLP is acting as legal advisor to poppi.
About PepsiCo:
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.PepsiCo.com.
About poppi:
poppi is a prebiotic soda brand modernizing soda for the next generation. Founded by husband-and-wife duo Stephen & Allison Ellsworth,
PepsiCo Cautionary Statement
Statements in this communication that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. Terminology such as "believe," "expect," "future," "intend," "may," "plan," "position," "potential," "should," "will" or similar statements or variations of such words and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: future demand for PepsiCo's products; damage to PepsiCo's reputation or brand image; product recalls or other issues or concerns with respect to product quality and safety; PepsiCo's ability to compete effectively; PepsiCo's ability to attract, develop and maintain a highly skilled workforce or effectively manage changes in our workforce; water scarcity; changes in the retail landscape or in sales to any key customer; disruption of PepsiCo's manufacturing operations or supply chain, including increased commodity, packaging, transportation, labor and other input costs; political, social or geopolitical conditions in the markets where PepsiCo's products are made, manufactured, distributed or sold; PepsiCo's ability to grow its business in developing and emerging markets; changes in economic conditions in the countries in which PepsiCo operates; future cyber incidents and other disruptions to our information systems; failure to successfully complete or manage strategic transactions; PepsiCo's reliance on third-party service providers and enterprise-wide systems; climate change or measures to address climate change and other sustainability matters; strikes or work stoppages; failure to realize benefits from PepsiCo's productivity initiatives or organizational restructurings; deterioration in estimates and underlying assumptions regarding future performance of our business or investments that can result in impairment charges; fluctuations or other changes in exchange rates; any downgrade or potential downgrade of PepsiCo's credit ratings; imposition or proposed imposition of new or increased taxes aimed at PepsiCo's products; imposition of limitations on the marketing or sale of PepsiCo's products; changes in laws and regulations related to the use or disposal of plastics or other packaging materials; failure to comply with personal data protection and privacy laws; increase in income tax rates, changes in income tax laws or disagreements with tax authorities; failure to adequately protect PepsiCo's intellectual property rights or infringement on intellectual property rights of others; failure to comply with applicable laws and regulations; and potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations.
For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Media Contacts:
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