Purchase-based PepsiCo, Inc. is going to buy the prebiotic soda brand poppi, which was founded by Stephen Ellsworth and his wife Alison in Austin, Texas. Sodas with prebiotics contain fiber designed to nourish so-called good bacteria found in the human digestive tract. The poppi sodas also contain fruit juice and apple cider vinegar.
The $1.95 billion price quoted by PepsiCo includes $300 in anticipated cash tax benefits, resulting in a net purchase price of $1.65 billion.
In 2018, the Ellsworths had introduced their soda on the ABC television program “Shark Tank” where businessman Rohan Oza agreed to make an investment. By early 2020, the poppi brand was available in about 1,000 locations nationwide including Whole Foods and Lifetime Fitness.
“When I created poppi in our kitchen, it was fueled by a desire to create a better-for-you soda,” Allison Ellsworth said. “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. We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people.”
Ramon Laguarta, PepsiCo’s chairman and CEO, said, “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.”
Ram Krishman, CEO of PepsiCo Beverages U.S., said, “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.”
PepsiCo said that Centerview Partners LLC is acting as lead financial advisor to PepsiCo, and J.P. Morgan Securities LLC is also acting as a financial advisor to PepsiCo. Cravath, Swaine & Moore LLP is acting as legal advisor to PepsiCo, and Davis Polk & Wardwell LLP is acting as tax counsel to PepsiCo. Goldman Sachs & Co. LLC is acting as financial advisor to poppi, and Cooley LLP is acting as legal advisor to poppi.
PepsiCo reported generating nearly $92 billion in net revenue in 2024, with brands that include Pepsi-Cola, Lay’s, Doritos, Cheetos, Gatorade, Mountain Dew, Quaker, and SodaStream.
There currently are 14 flavors of poppi prebiotic soda available: Strawberry Lemon; Raspberry Rose; Orange; Ginger Lime; Watermelon; Cherry Limeade; Grape; Wild Berry; Classic Cola; Root Beer; Doc Pop; Lemon Lime; Orange Cream; and Cherry Cola.
