PepsiCo to Acquire poppi

Core Viewpoint - PepsiCo has announced a definitive agreement to acquire poppi, a prebiotic soda brand, for a total of $1.95 billion, which includes $300 million in anticipated cash tax benefits, resulting in a net purchase price of $1.65 billion [1][2]. Company Strategy - The acquisition aligns with PepsiCo's strategy to evolve its food and beverage portfolio by innovating and making strategic acquisitions that cater to consumer preferences for health and wellness [2][3]. - PepsiCo aims to address consumer needs for convenient and great-tasting options, with poppi serving as a complement to its portfolio transformation efforts [2][3]. Product Overview - poppi is a functional soda brand that combines prebiotics, fruit juice, and apple cider vinegar, offering a low-calorie soda with no more than five grams of sugar per serving [2][8]. - The brand has gained a loyal fan base and experienced rapid growth, initially gaining attention on the show Shark Tank [2][8]. Leadership and Vision - PepsiCo's leadership believes that poppi's unique intersection with wellness and culture will enhance its portfolio and drive growth and innovation [3]. - The founders of poppi express excitement about the partnership with PepsiCo, emphasizing their mission to create a better-for-you soda and their commitment to maintaining the brand's unique qualities [3][8]. Financial Advisors - Centerview Partners LLC and J.P. Morgan Securities LLC are acting as financial advisors to PepsiCo, while Goldman Sachs & Co. LLC is advising poppi [4].