PepsiCo has officially announced a definitive agreement to acquire Poppi, a rapidly growing prebiotic soda brand, in a deal valued at $1.95 billion. This includes an estimated $300 million in cash tax benefits, bringing the net purchase price to $1.65 billion. Additionally, the agreement features a potential earnout consideration, contingent upon Poppi meeting specific performance milestones within a designated period post-transaction closure.
Poppi is a rapidly expanding functional soda brand that blends prebiotics, fruit juice, and apple cider vinegar to deliver a refreshing, low-calorie beverage with no more than five grams of sugar per serving. With its consumer-first approach, strong cultural appeal, and health-conscious formulation, Poppi has cultivated a dedicated fan base and experienced impressive growth. The brand was founded by Allison and Stephen Ellsworth, gained recognition on Shark Tank with backing from Rohan Oza, and has been supported by CAVU Consumer Partners from its initial seed round to its current success.
Detailing about the acquisition, Ramon Laguarta, Chairman and CEO, PepsiCo, said, “We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers. More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. poppi is a great complement to our portfolio transformation efforts to meet these needs.”
Commenting about the development, Ram Krishnan, CEO, PepsiCo Beverages U.S., said, “As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand’s unique intersection with wellness and culture is a perfect addition to our portfolio. Allison and the poppi team have built a magnetic brand that’s ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand paired with our commercial capabilities will drive continued growth and innovation for years to come.”Â
Elated about the progress, Allison Ellsworth, Co-Founder of poppi, said, “When I created poppi in our kitchen, it was fueled by a desire to create a better-for-you soda. We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional soda that stands the test of time. We believe poppi is the soda that will be embraced for generations to come, and we’re beyond grateful to the amazing poppi team, our partners who believed in us from the very beginning and most importantly our incredible community. We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes poppi so special while supporting our next phase of growth and innovation. I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible.”
“poppi is a true testament to the American Dream! From the kitchen to Shark Tank to becoming an iconic brand, this couldn’t have been done without the amazing founders Allison and Stephen Ellsworth, the incredible team in place led by CEO Chris Hall, the unmatched support of CAVU’s Uncommon team led by Stevie Clements, and the extraordinary poppi community,” said Rohan Oza, Guest Shark on ABC’s Shark Tank and Co-Founder at CAVU Consumer Partners. “We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy poppi – a truly modern soda for the next generation.”
The acquisition is subject to customary closing conditions, including regulatory approvals. Further details of the transaction have not been disclosed.
Centerview Partners LLC serves as the lead financial advisor to PepsiCo, with J.P. Morgan Securities LLC also providing financial advisory support. Cravath, Swaine & Moore LLP is acting as PepsiCo’s legal counsel, while Davis Polk & Wardwell LLP is advising on tax matters. On the Poppi side, Goldman Sachs & Co. LLC is acting as financial advisor, with Cooley LLP serving as legal counsel.
About PepsiCo:
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $92 billion in net revenue in 2024, driven by a complementary beverage and convenient foods portfolio that includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.PepsiCo.com.
About poppi:
poppi is a prebiotic soda brand modernizing soda for the next generation. Founded by husband-and-wife duo Stephen & Allison Ellsworth, Austin, TX-based poppi combines prebiotics and fruit juice to create a deliciously refreshing, mouthwatering low calorie soda with no more than 5 grams of sugar per serving. What originally started as a home-brewed concoction quickly became a farmers’ market favorite turned Shark Tank investment and is now available at major retailers nationwide. poppi’s brand-first approach, cultural cache, and rapid growth have nurtured an incredibly loyal community, including celebrity fans. poppi is available in 14 delicious flavors – Strawberry Lemon, Raspberry Rose, Orange, Ginger Lime, Watermelon, Cherry Limeade, Grape, Wild Berry, Classic Cola, Root Beer, Doc Pop, Lemon Lime, Orange Cream and Cherry Cola. For more information, visit drinkpoppi.com, or follow @drinkpoppi on Instagram and TikTok.
