PepsiCo has acquired the prebiotic soda brand Poppi for nearly $2 billion, boosting its presence in the healthy drinks category as price hikes weigh on demand for its sodas and Lay’s snacks. Prebiotic sodas are among the fastest-growing categories in the U.S. carbonated drinks segment, driven by a shift towards gut health-focused beverages. Poppi, based in Austin, Texas, combines prebiotics, fruit juice, and apple cider vinegar to create a low-calorie soda with no more than five grams of sugar per serving. The company’s retail sales surged 122% year-over-year in the 12 weeks through February 22, holding about a 1% share of the total carbonated soft drinks category. Founded by Stephen and Allison Ellsworth, Poppi was initially known as Mother before being rebranded in 2020. The deal includes $300 million in anticipated cash tax benefits for a net purchase price of $1.65 billion. — news from Reuters
