Pepsi to Buy Health-Focused Soda Brand Poppi for Nearly $2B

PepsiCo has unveiled plans to acquire poppi, a prebiotic soda brand, for $1.95 billion, with a net purchase price of $1.65 billion after factoring in $300 million in expected cash tax benefits. The agreement also includes potential earnout payments tied to performance milestones.

The deal strengthens PepsiCo’s foothold in the healthy drinks market as repeated price hikes dampen demand for its traditional sodas and Lay’s snacks, leading to a subdued annual profit forecast. Prebiotic sodas have emerged as a fast-growing segment within U.S. carbonated drinks, fueled by a rising preference for health-conscious beverage options.

poppi, based in Austin, TX, saw its retail sales surge 122% year-over-year in the 12 weeks ending February 22, 2025, securing roughly a 1% share of the carbonated soft drinks market, per BNP Paribas data.

Originally launched as Mother by founders Stephen and Allison Ellsworth, poppi rebranded in 2020. The couple pitched the company on Shark Tank in 2018, securing support from investor Rohan Oza, co-founder of CAVU Consumer Partners.

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.