PepsiCo is close to a deal to buy Poppi. This is a brand known for its healthier soda options. The deal is worth over $1.5 billion. Moreover, PepsiCo may announce the acquisition as soon as next week. However, there could be delays in finalizing the deal. Continue reading to learn more about the Poppi and PepsiCo deal.
What is the Poppi and PepsiCo Deal About?
This deal fits PepsiCo’s plan to expand its range of healthier drinks. The beverage industry is changing constantly. Thus, many companies are producing new flavors and products. For instance, Coca-Cola has launched a new probiotic drink called Simply Pop. Moreover, A&W has also introduced a new Root Beer Ice Cream Sundae Flavor. These changes show that soda brands are evolving to meet consumer demands.
What is Poppi?
Poppi is a sparkling probiotic soda brand. It is based in Austin, Texas. Moreover, the company was founded by Allison and Stephen Ellsworth in 2018. They named it “Mother Beverage” in the beginning. However, the brand gained popularity after appearing on the TV show Shark Tank. They rebranded it as Poppi after the show.
The brand offers a variety of flavors. Some of these include Orange, Ginger, Lime, Rose, Lemon Lime, among others. The brand focuses on making healthier soda alternatives. These are low on sugar and contain probiotics.
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What Does the Deal Mean for Poppi?
If PepsiCo acquires Poppi, it could mean significant changes for the brand. PepsiCo is one of the largest soda companies in the world. Thus, the acquisition could help Poppi reach more customers. Moreover, it may also increase the brand’s marketing budget. It allows for better promotion of their products.
Poppi can be available in more stores with PepsiCo’s distribution network. Thus, it means more people will have access to Poppi’s healthier soda options. The deal could also attract new fans to the brand. It will help grow the brand even more.
Recent Controversies
Poppi has faced some controversies lately. The brand experienced controversy regarding vending machines. This situation raised some concerns. However, this did not stop PepsiCo from pursuing the acquisition. The popularity of Poppi remains strong despite these issues.
The Growing Market for Functional Beverages
The market for functional beverages is expanding. Functional sodas like Poppi offer benefits beyond taste. Also, they include ingredients like probiotics and added fiber. These ingredients aim to improve digestive health.
Moreover, sales of functional beverages are rising. FreshDirect reported a 60% increase in sales of these drinks over the past year. Brands such as Poppi are driving this growth. However, traditional sodas are seeing a slight sales increase.
PepsiCo’s Recent Acquisitions
PepsiCo has been focusing on acquiring healthier brands. Recently, the company announced plans to acquire Siete Foods. This is for $1.2 billion. Moreover, they plan to buy the remaining 50% of Sabra Dipping Co. and PepsiCo-Strauss Fresh Dips & Spreads International GmbH.
Thus, these moves show PepsiCo’s commitment to offering healthier options to consumers.
PepsiCo’s CEO is Ramon Laguarta. He noted a growing awareness among American consumers about health and awareness. This trend has influenced the company’s strategy to invest in healthier brands like Poppi.
Conclusion
The potential acquisition of Poppi by PepsiCo could be a significant step for both companies. For Poppi, this deal could mean greater visibility and access to larger markets. Moreover, for PepsiCo, it aligns with their goals of expanding into healthier beverage options.
