PepsiCo acquires prebiotic soda brand Poppi for US$1.95B to expand functional beverage portfolio 

USA – PepsiCo has finalized the acquisition of Poppi, a leading prebiotic soda brand, for US$1.95 billion.  

The deal includes US$300 million in expected cash tax benefits, resulting in a net purchase price of US$1.65 billion.  

Additionally, the transaction features a performance-based earnout contingent on achieving specific performance goals. 

The acquisition underscores PepsiCo’s ongoing portfolio transformation, with a focus on providing functional, better-for-you beverage options in line with evolving consumer preferences.  

Poppi joins PepsiCo’s growing list of health-oriented acquisitions, which include brands such as Siete and Sabra. 

“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 North America.  

He noted Poppi’s rapid growth, unique positioning in the functional beverage space, and strong consumer following as key drivers of the acquisition. 

Poppi CEO Chris Hall expressed optimism about the brand’s future with PepsiCo, stating the team is “incredibly grateful to our passionate community” and excited about the “next phase of growth.” 

The acquisition follows PepsiCo’s announcement of a quarterly dividend of US$1.4225 per share, a 5% increase compared to the same period last year. 

In a parallel strategic move, PepsiCo also revealed a multi-year collaboration with Amazon Web Services (AWS).  

This partnership aims to accelerate the company’s digital transformation by leveraging AWS infrastructure to drive artificial intelligence innovation, improve supply chain operations, and enhance consumer engagement. 

“A cloud-first approach has been essential to PepsiCo’s ongoing digital transformation,” said Athina Kanioura, Executive Vice President and Chief Strategy and Transformation Officer at PepsiCo. She added that the collaboration would enhance agility, intelligence, and scalability across the enterprise. 

These developments reinforce PepsiCo’s commitment to innovation and sustainable long-term growth across its global business. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.