Pepsi Just Bought a New Soda Brand in Major Acquisition
As gut health has become more of a priority, probiotic and prebiotic foods have become wildly popular in the health and wellness world. Enter poppi, a prebiotic soda that has disrupted the healthy beverage market over the past few years. This week the fast-growing company proved it has officially made it, getting purchased by Pepsi for billions of dollars. Here is what you need to know about the significant acquisition that will likely result in the soda brand becoming a household name.
PepsiCo Purchased poppi for $1.95 Billion
In a press release this week, PepsiCo announced the purchase of poppi for a whopping $1.95 billion, including $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion. That number could go up, depending on performance milestones after clothing.
Consumers Are Seeking Healthieir Beverages, Per Pepsi
"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," Ramon Laguarta, Chairman and CEO, PepsiCo, explained in a press release. "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."
What Is poppi?
poppi 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," according to the press release. The company was founded by Allison and Stephen Ellsworth, then discovered on Shark Tank by Rohan Oza, and funded by CAVU Consumer Partners.
Pepsi Hopes to Grow the Brand
"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 U.S. "Allison and the poppi team have built a magnetic brand that's ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand paired with our commercial capabilities will drive continued growth and innovation for years to come."
The "Better-For-You" Will Be "Embraced for Generations to Come"
"When I created poppi in our kitchen, it was fueled by a desire to create a better-for-you soda," added 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."
It Is a "Testatment to the American Dream"
"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," Rohan Oza, Guest Shark on ABC's Shark Tank and Co-Founder at CAVU Consumer Partners, explained. "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."
Where to Get the Best Deal on poppi
If you haven't tried poppi yet, head over to your local Costco, where you will find the best deals on the healthy soda. A 15-count variety pack of the apple cider vinegar and gut-boosting beverage with Doc Pop, Wild Berry, and Lemon Lime is currently $5 off.
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