M&A Update: PepsiCo to acquire poppi

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Functional soda brand, poppi, has reached an agreement to be bought by PepsiCo. Founded by Allison and Stephen Ellsworth, poppi’s beverages blend prebiotics, fruit juice, and apple cider vinegar. Speaking about the origins of poppi, Allison Ellsworth shared, “When I developed poppi in our kitchen, it was driven by a desire to create a healthier soda.” The company gained recognition in 2018 after appearing on Shark Tank and securing an investment from Rohan Oza. Following the investment, poppi underwent a rebranding effort and saw significant growth in the beverage market. Reflecting on their journey, Allison Ellsworth said, “We never anticipated the vast reach we could achieve through hard work, dedication, and a clear mission to create a functional soda that withstands the test of time.” She added, “We believe poppi is the soda that will be embraced for generations to come, and we’re immensely thankful to the incredible poppi team, our supportive partners, and, most importantly, our amazing community.”

The acquisition deal includes a purchase price of $1.95 billion, with $300 million expected in cash tax benefits, resulting in a net purchase price of $1.65 billion. The agreement is subject to standard closing conditions, including regulatory approval, and includes potential earnout consideration based on meeting specific performance goals post-closure. PepsiCo Beverages U.S. CEO, Ram Krishnan, shared the reasoning behind the interest in acquiring the probiotic beverage brand: “As we realign our product offerings to cater to unmet consumer needs, the poppi brand’s distinctive blend of wellness and culture presents a perfect addition to our portfolio. Allison and the poppi team have cultivated a captivating brand that is ahead of current trends, with a loyal customer base and proven growth potential. We admire the poppi brand movement and believe that this remarkable brand, combined with our commercial capabilities, will drive sustained growth and innovation for years to come.”

Allison Ellsworth expressed her excitement about poppi’s new chapter with PepsiCo, stating, “We are eager to embark on this next phase with PepsiCo to introduce our soda to more people – and I am confident they will uphold what makes poppi exceptional while supporting our future growth and innovation. I hope our story motivates others to pursue their passions, take risks, and believe that anything is achievable.”