PepsiCo buys prebiotic soda brand Poppi to gain a foothold in functional drinks

PepsiCo said Monday it’s acquiring the prebiotic soda brand Poppi for $1.95 billion. The acquisition gives PepsiCo a fast-growing brand in the popular functional beverage category. PepsiCo said the transaction includes $300 million of anticipated cash benefits, bringing the net purchase price to $1.65 billion. Poppi was developed in 2015 by Allison Ellsworth, who loved soda but was tired of how it made her feel. Ellsworth mixed fruit juice with apple cider vinegar, prebiotics and sparkling water and sold it at farmer's markets. The brand took off in 2018 after an appearance on “Shark Tank.”