PepsiCo to Acquire Poppi for $1.5 Billion, Boosting Healthier Beverage Portfolio

PepsiCo Inc. is in the advanced stages of negotiations to acquire Poppi, a brand known for its healthier soda options. The deal, anticipated to exceed $1.5 billion, marks a significant strategic move for PepsiCo as it aims to diversify its portfolio and meet the increasing demand for healthier beverages. Poppi, which gained recognition in 2018 after securing an investment from Cavu Venture Partners’ Rohan Oza on the television show Shark Tank, has built a reputation for its low-sugar and low-calorie sodas. This acquisition would enable PepsiCo to strengthen its position in the health-conscious beverage market, which has seen a notable rise in popularity.

Poppi's success in the direct-to-consumer market, driven by its online sales and subscription model, presents an attractive opportunity for PepsiCo. By acquiring Poppi, PepsiCo would gain a robust foothold in this growing segment, allowing it to leverage Poppi's strong brand and loyal customer base to drive further growth. The deal is expected to be finalized in the coming weeks, pending regulatory approval and other customary closing conditions. This acquisition aligns with PepsiCo's broader strategy to expand its product offerings and appeal to a wider range of consumers, particularly those seeking healthier beverage options.

The acquisition of Poppi would not only enhance PepsiCo's product portfolio but also provide it with a competitive edge in the health-conscious beverage market. Poppi's focus on low-sugar and low-calorie beverages resonates with consumers who are increasingly health-conscious and looking for alternatives to traditional sodas. By integrating Poppi into its portfolio, PepsiCo can tap into this growing market segment and offer consumers a broader range of healthier beverage choices.

Moreover, Poppi's direct-to-consumer business model, which has proven successful through online sales and subscriptions, offers PepsiCo an opportunity to strengthen its e-commerce capabilities. This acquisition would allow PepsiCo to leverage Poppi's established online presence and customer base to drive growth in the direct-to-consumer market. The deal is expected to be finalized in the coming weeks, subject to regulatory approval and other customary closing conditions.