Functional soda brand, poppi, has entered into a definitive agreement to be acquired by PepsiCo. Created by Allison and Stephen Ellsworth, the brand's beverages combine prebiotics, fruit juice, and apple cider vinegar. "When I created poppi in our kitchen, it was fueled by a desire to create a better-for-you soda," said Allison Ellsworth.
In 2018, the company appeared on an episode of the tv show Shark Tank. With an investment from Rohan Oza, the
company underwent a rebranding initiative and began experiencing growth within the beverage market. "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," said Allison Ellsworth. "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."
Specifics of the acquisition deal include a purchase price of $1.95 billion, including $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion. Subject to customary closing conditions, including regulatory approval, the agreement includes additional potential earnout consideration depending on the ability to meet specified performance milestones within a predetermined period after closing.
Ram Krishnan, CEO, PepsiCo Beverages U.S., explained the motivation behind the company's interest in adding the probiotic beverage to its beverage brand portfolio: "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."
Allison Ellsworth expressed her enthusiasm for the brand's new venture: "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."
