PepsiCo today announced that it has reached a final agreement to acquire the fast-growing prebiotic drink brand Poppi. The transaction is worth $1.95 billion, including $300 million in tax benefits, for a net purchase price of $1.65 billion. The transaction also includes an additional potential earnout, subject to the achievement of certain performance targets within a specified period of time from the closing of the transaction, subject to the usual closing conditions, including approval by the authorities. 

Poppi is a fast-growing functional drink brand that combines prebiotics, fruit juice and apple cider vinegar to create a deliciously refreshing, low-calorie drink with no more than five grams of sugar per serving. The consumer-oriented approach, cultural and nutritional profile have fueled a base of loyal fans and driven rapid growth.

"We have been expanding our food and beverage portfolio for many years, also innovating with our brands in new spaces and through disciplined and strategic acquisitions that allow us to offer more positive choices to our consumers -said Ramon Laguarta, chairman and ceo of PepsiCo-. Poppi is an excellent complement to our portfolio transformation efforts to meet these needs".

The Poppi brand was created by Allison and Stephen Ellsworth, discovered on Shark Tank by Rohan Oza and funded by Cavu Consumer Partners from its initial seed round to date. "As we seek to reorient our portfolio offerings to meet the needs of white space consumers, the unique intersection of the poppi brand with wellness and culture is a perfect addition to our portfolio-explains Ram Krishnan, ceo of PepsiCo Beverages U.S-. Allison and the Poppi team have built a magnetic brand that is ahead of trends, with a loyal consumer base and demonstrated ability to grow. We are great supporters of the poppi brand movement and believe that this incredible brand, combined with our business capabilities, can drive continued growth and innovation for years to come". 

"When I created poppi in our kitchen, it was fueled by the desire to create a better drink for you -adds Allison Ellsworth, co-founder of Poppi-. We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional drink that stands the test of time. We believe that poppi is the drink that will be appreciated by generations to come and we are very grateful to the amazing team of poppi, our partners who have believed in us from the beginning and especially to our incredible community. We look forward to starting the next chapter with PepsiCo to bring our drink to more people, and I know they will honor what makes poppi so special, supporting our next phase of growth and innovation. I hope our story inspires others to explore their passions, take risks and believe that anything is possible".