Pepsi Eyes the Prebiotic Soda Market with Plans to Purchase Poppi for $2 Billion
Trends in soda consumption are the catalyst for PepsiCo’s planned $2 billion purchase of Poppi, the prebiotic soda brand that, according to NBC News, has “won over health-conscious consumers over the last five years.”
Soda consumption in the U.S. has fallen in the U.S. while prebiotic sodas become more popular. Coca-Cola also sees potential in this growing trend and launched its brand of prebiotic sodas, Simply Pop.
“Pepsi said it plans to acquire the upstart Poppi for $1.95 billion. The deal includes $300 million of anticipated cash tax benefits, making the net purchase price $1.65 billion. Pepsi will also have to make additional payments if Poppi achieves certain performance milestones within a set time frame after the acquisition closes.”