Purchase, NY, Plano, TX — PepsiCo, Inc. based in Purchase, NY announced yesterday that it will acquire KeVita, maker of fermented probiotic and kombucha beverages. According to BevNET, sources close to the deal have put the purchase price between $200 and 300 million. PespiCo has already held a minority stake in KeVita for an undisclosed sum since 2013.
“I am pleased to welcome KeVita into the PepsiCo family,” said Chris Lansing, general manager and vice president, PepsiCo Premium Nutrition in a press release. “Under the leadership of CEO Bill Moses, KeVita has become an innovative, high–growth brand that is transforming the functional beverage space.”
“Joining the PepsiCo family will give us an opportunity to extend KeVita’s trend-forward beverages to a broader audience, while staying committed to our core values,” said Bill Moses, CEO and co-founder of KeVita in a press release. “We’re looking forward to more consumers experiencing the KeVita brand and to leveraging PepsiCo’s marketing and distribution capabilities.”
When the deal closes, KeVita will continue to operate independently with its production and bottling facilities in Oxnard, CA.
Dr. Pepper Snapple Group (DPS) based in Plano, TX also announced that it has come to an agreement to acquire Bai Brands, LLC and its complete portfolio of antioxidant-infused beverages for a cash purchase price of $1.7 billion that include tax benefits valued at approximately $400 million. DPS expects Bai to generate approximately $425 million in net sales in 2017 and add an incremental $132 million to DPS’s current net sales expectation for 2017.
“In a relatively short time, Bai has carved out a leadership position in the enhanced water category and has now extended that success into other fast-growing and profitable categories,” said Larry Young, DPS President and CEO in a press release. “We’re equally impressed with their innovation pipeline, which will continue to meet the needs of consumers seeking great tasting, low-calorie beverages with natural flavors and no artificial sweeteners.”