PepsiCo agrees to buy soda upstart brand Poppi for nearly $2B
Why it matters: The spigot for beverage deals is opening following an agreement by Celsius to acquire Alani Nu for $1.8 billion.
Zoom in: PepsiCo is striking the deal after reportedly deciding that a prebiotic soda brand it developed in-house would not succeed, per Bloomberg.
The purchase price includes $300 million of cash tax benefits and an additional earn-out.
The transaction is also a win for investor CAVU Consumer Partners.
Catch up quick: Coca-Cola was in talks to buy Poppi last year but decided to launch its version, Simply Pop.
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Pepsi to introduce prebiotic cola this fall after buying Poppi
PepsiCo is introducing a new prebiotic soda this fall geared toward health-conscious customers. The food and beverage company said Monday that the new product is designed to meet changing consumer needs and offer "more functional ingredients." The new drink, which will come in cola and cherry vanilla flavors, will contain five grams of cane sugar, three grams of prebiotic fiber and no artificial sweeteners, while a single serving will have 30 calories, according to Pepsi. "Pepsi Prebiotic Cola represents the next leap forward in giving consumers choice, optionality and functional ingredients in their cola experience, without sacrificing the iconic Pepsi taste we're known for delivering," Ram Krishnan, CEO of PepsiCo Beverages U.S., said in a statement. The new cola will be available for purchase online this fall and in stores next year, Pepsi said. The product announcement comes only months after Pepsi acquired Poppi, which is marketed as a healthier alternative for soda lovers, for nearly $2 billion. The low-calorie soda contains a mix of prebiotics, fruit juice and apple cider. The prebiotic and probiotic food and drink sector has grown quickly in recent years as consumers increasingly seek out gut-healthy, flavorful alternatives to soda. According to consulting firm Future Market Insights, the prebiotic soda market was valued at $262 million in 2024. Global sales are expected to grow 7.6% over the next 10 years. Pepsi is moving to introduce healthier offerings to boost lagging soda sales. On an earnings call last week, PepsiCo CEO Ramon Laguarta said the company will introduce protein-enhanced versions of its snacks and new protein beverages this year. He also said Pepsi will relaunch Lay's potato chips and Tostitos tortilla chips without artificial colors or ingredients. "I think protein is clearly a subsegment in our food and beverages categories that is growing fast," Laguarta said in the July 17 call. "Consumers are adopting protein solutions in the diet at a pace that was not the case in a few months back, a few years back." What shocked "Matlock" star Kathy Bates? A new you: The science of redesigning your personality "Somebody Somewhere" star Bridget Everett Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Poppi consumers could be entitled to a payment from a $8.9M class action settlement
NEW YORK (PIX11) — Have you ever tried a sip of the sparkling prebiotic drink Poppi? You may be eligible for a payment from an $8.9 million class action settlement due to claims that the company improperly advertised its soda products as 'gut healthy.' More Local News Consumers who purchased any flavor or package size of Poppi beverages between Jan. 23, 2020, and July 18, 2025, can be eligible. Plaintiffs in the class action lawsuit claim the advertising was not supported by scientific evidence. Despite the settlement, the company has admitted no wrongdoing. Consumers can receive a cash payment based on the number of products purchased. Customers with proof of purchase can receive the following: Up to $0.75 per single can $3 per four-pack $6 per eight-pack $9 per 12- or 15-pack There is a $16 cap without proof of purchase. Claims must be submitted online or postmarked by Sept. 26, 2025. To fill out a claim form, click here. Ben Mitchell is a digital content producer from Vermont who has covered both local and international news since 2021. He joined PIX11 in 2024. See more of his work here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
CBS News
5 hours ago
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Pepsi to introduce prebiotic cola this fall after buying Poppi
PepsiCo is introducing a new prebiotic soda this fall geared toward health-conscious customers. The food and beverage company said Monday that the new product is designed to meet changing consumer needs and offer "more functional ingredients." The new drink, which will come in cola and cherry vanilla flavors, will contain five grams of cane sugar, three grams of prebiotic fiber and no artificial sweeteners, while a single serving will have 30 calories, according to Pepsi. "Pepsi Prebiotic Cola represents the next leap forward in giving consumers choice, optionality and functional ingredients in their cola experience, without sacrificing the iconic Pepsi taste we're known for delivering," Ram Krishnan, CEO of PepsiCo Beverages U.S., said in a statement. The new cola will be available for purchase online this fall and in stores next year, Pepsi said. The product announcement comes only months after Pepsi acquired Poppi, which is marketed as a healthier alternative for soda lovers, for nearly $2 billion. The low-calorie soda contains a mix of prebiotics, fruit juice and apple cider. The prebiotic and probiotic food and drink sector has grown quickly in recent years as consumers increasingly seek out gut-healthy, flavorful alternatives to soda. According to consulting firm Future Market Insights, the prebiotic soda market was valued at $262 million in 2024. Global sales are expected to grow 7.6% over the next 10 years. Pepsi is moving to introduce healthier offerings to boost lagging soda sales. On an earnings call last week, PepsiCo CEO Ramon Laguarta said the company will introduce protein-enhanced versions of its snacks and new protein beverages this year. He also said Pepsi will relaunch Lay's potato chips and Tostitos tortilla chips without artificial colors or ingredients. "I think protein is clearly a subsegment in our food and beverages categories that is growing fast," Laguarta said in the July 17 call. "Consumers are adopting protein solutions in the diet at a pace that was not the case in a few months back, a few years back."The Associated Press contributed to this report.
