PepsiCo, Inc. (PEP) looks well-poised for growth on strength in its core categories, diversified portfolio, improved digital capabilities and flexible go-to-market distribution systems. PEP’s solid innovations are on track.In the latest revelation, PepsiCo has inked an agreement to acquire poppi, which is a fast-growing prebiotic soda brand, worth $1.95 billion. This amount comprises $300 million of estimated cash tax gains for a net purchase price of $1.65 billion.Details on PEP’s Latest Newspoppi combines ...

PepsiCo (PEP) announced on Monday its acquisition of the prebiotic soda brand Poppi for $1.95 billion, strengthening its presence in the growing functional beverage category. The move comes as the company faces declining demand for its traditional sodas and snacks amid consumers’ preference for health-conscious options. Shares of PEP gained about 1.9% on March 17, 2025.PepsiCo stated that the transaction includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Viewpoint - PepsiCo is acquiring prebiotic soda brand Poppi for $1.95 billion to meet increasing consumer demand for healthier products, with a net purchase price of $1.65 billion after accounting for anticipated cash tax benefits [1]. Group 1: Acquisition Details - The acquisition includes $300 million in anticipated cash tax benefits, reducing the effective purchase price to $1.65 billion [1]. - Poppi is a low-calorie soda that combines prebiotics and fruit juice, containing no more than 5 grams of sugar per serving [4]. Group 2: Market Trends - There is a growing consumer interest in health and wellness, influencing purchasing behaviors and driving demand for healthier options [3][6]. - The prebiotic soda market is projected to reach a valuation of $54.5 million by 2034 [8]. Group 3: Competitive Landscape - PepsiCo's CEO highlighted the company's ongoing portfolio transformation to include lower sodium, lower fat, lower sugar, and positive ingredients [7]. - Coca-Cola is also entering the prebiotic soda market with its own product, Simply Pop, targeting wellness-focused consumers [7].

PepsiCo said Monday it would buy prebiotic soda brand Poppi for $1.95 billion, expanding in the “healthier soda” category at a time when the company is battling falling demand for its traditional beverages and snacks.Shares of PepsiCo were up 1.5% in morning trading.Young Americans are increasingly turning to healthier sodas and energy drinks as part of a broader shift to fitness and lifestyle products, with rival Coca-Cola expanding its Simply brand to launch a prebiotic soda called “Simply Pop.”PepsiCo ag ...

PepsiCo said Monday that it is buying prebiotic soda brand Poppi for more than $1.6 billion.The food and beverage giant said it plans to acquire the upstart for $1.95 billion. The deal includes $300 million of anticipated cash tax benefits, making the net purchase price $1.65 billion.Pepsi will also have to make additional payments if Poppi achieves certain performance milestones within a set time frame after the acquisition closes.Pepsi did not say when the deal is expected to close, pending regulatory app ...

Company continues to evolve its portfolio through innovation and strategic acquisitions Company expands better-for-you offerings to meet consumer preferences and continue to serve new generations of consumers PURCHASE, N.Y. and AUSTIN, Texas, March 17, 2025 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) ("PepsiCo") today announced that it 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 ...

Core Insights - PepsiCo, Inc. (NASDAQ: PEP) has experienced a decline of over 15% in its stock price over the past six months [1] - The recent nomination of RFK Jr. as Secretary of Health has negatively impacted the company's fortunes [1] Company Performance - The stock performance of PepsiCo has been challenging, with a significant drop in value noted [1] Analyst Perspective - The analysis emphasizes a strong focus on technical analysis and aims to provide high-quality insights to the investment community [1]

Core Viewpoint - The recent stock market volatility has led investors to favor stable consumer staples, particularly those with predictable dividend growth, with PepsiCo showing resilience while Coca-Cola demonstrates stronger growth metrics [1][2]. Growth and Outlook - Coca-Cola has outperformed PepsiCo in organic sales growth, achieving a 14% increase compared to PepsiCo's 2% [2]. - Coca-Cola projects organic revenue growth of 5% to 6% for the upcoming year, while PepsiCo anticipates low-single-digit revenue gains [2]. - PepsiCo's sales volume declined by 1% last quarter, contrasting with Coca-Cola's 2% increase, indicating Coca-Cola's better pricing power and volume retention [3]. Cash Flow and Returns - PepsiCo plans to allocate $7.6 billion for dividends and $1 billion for stock buybacks in 2025 [4]. - Coca-Cola spent $8 billion on dividends and $1.1 billion on stock buybacks last year, with both companies increasing their dividends by 5% in 2025 [5]. Valuation - PepsiCo shares are trading at 18 times expected earnings, while Coca-Cola's forward P/E is 24, indicating a valuation premium for Coca-Cola [6]. - In terms of revenue valuation, PepsiCo trades at 2.3 times revenue compared to Coca-Cola's 6.5 times [6]. Profitability - Coca-Cola boasts a higher operating profit margin of 30%, significantly surpassing PepsiCo's 14% [7]. - Coca-Cola's strong growth and profitability justify its premium valuation, making it a preferred choice for many investors [8]. Investment Preference - While PepsiCo offers a higher yield at 3.55% compared to Coca-Cola's 2.7%, Coca-Cola's overall business performance and stability make it a more attractive investment [5][8]. - Coca-Cola's consistent dividend increases, marking its 63rd consecutive year, solidify its status among Dividend Kings [8].

Hi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards financial independence using dividend growth investing as the means to transform the dream of financial independence into a reality. It's also th ...