PepsiCo to buy healthy soda brand Poppi for nearly $2B

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].