PepsiCo to buy prebiotic brand Poppi for nearly $2 billion

PepsiCo is acquiring prebiotic soda brand Poppi for almost $2 billion, the beverage giant said on Monday.

Purchase, New York-based PepsiCo had reportedly planned to start its own so-called functional soda under its Soulboost brand, but decided instead to purchase Poppi, a brand that combines prebiotics, fruit juice and apple cider to craft a low-calorie soda.

Founded in 2016 as a healthy alternative to traditional sodas, Poppi soda increased in popularity after an investment from “Shark Tank,” a reality television show that gives entrepreneurs the chance to pitch their ideas. 

“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.”

The functional soda category has been increasingly popular among health-conscious Americans, with beverages offering ingredients like prebiotics and less sugar. 

Coca-Cola recently launched its own prebiotic brand, Simply Pop.

PepsiCo in January said it had closed its $1.2 billion acquisition of Siete Foods for $1.2 billion, after saying in November that it would buy the remaining 50% of Sabra and Obela dip and spread brands from Strauss Group.