PepsiCo has entered into a definitive agreement to acquire poppi, a fast-growing prebiotic soda brand, for $1.95 billion, including $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion.
The transaction also includes an additional potential earnout consideration subject to the achievement of certain performance milestones within a specified period after the closing of the transaction.
poppi is a functional soda brand that combines prebiotics, fruit juice, and apple cider vinegar to create a deliciously refreshing low-calorie soda with no more than five grams of sugar per serving. poppi’s consumer-first approach, cultural cache, and nutritional profile have nurtured a loyal fan base and driven rapid growth. poppi was created by Allison and Stephen Ellsworth, discovered on Shark Tank by Rohan Oza and funded by CAVU Consumer Partners from their initial seed round to today.
“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. 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. poppi is a great complement to our portfolio transformation efforts to meet these needs,” said Ramon Laguarta, Chairman and CEO, PepsiCo.
“As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand’s unique intersection with wellness and culture is a perfect addition to our portfolio. Allison and the poppi team have built a magnetic brand that’s ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand paired with our commercial capabilities will drive continued growth and innovation for years to come,” said Ram Krishnan, CEO, PepsiCo Beverages U.S.
“When I created poppi in our kitchen, it was fueled by a desire to create a better-for-you soda. We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional soda that stands the test of time. We believe poppi is the soda that will be embraced for generations to come, and we’re beyond grateful to the amazing poppi team, our partners who believed in us from the very beginning and most importantly our incredible community. We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes poppi so special while supporting our next phase of growth and innovation. I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible,” said Allison Ellsworth, Co-Founder of poppi.
“poppi is a true testament to the American Dream! From the kitchen to Shark Tank to becoming an iconic brand, this couldn’t have been done without the amazing founders Allison and Stephen Ellsworth, the incredible team in place led by CEO Chris Hall, the unmatched support of CAVU’s Uncommon team led by Stevie Clements, and the extraordinary poppi community. We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy poppi – a truly modern soda for the next generation,” said Rohan Oza, Guest Shark on ABC’s Shark Tank and Co-Founder at CAVU Consumer Partners.
