Zinger Key Points PepsiCo is in talks to buy gut-health soda brand Poppi for over $1.5B, pivoting after scrapping its own Soulboost launch.
Poppi deal aligns with PepsiCo’s health push as new HHS leadership eyes stricter food and nutrition regulations.
PepsiCo Inc PEP is discussing a deal to acquire the healthier soda brand Poppi for over $1.5 billion, Bloomberg reported on Friday, citing unnamed sources familiar with the matter.
The “functional soda” includes prebiotics, probiotics, and added fiber, which companies market as digestive health boosters.
PepsiCo had previously abandoned its plans to launch its functional soda under the Soulboost brand.
Also Read: Coca-Cola, Pepsi May Launch Budget Drinks In India To Fend Off Competition From India’s Richest Man’s Soft Drink Company: Report
Allison Ellsworth and Stephen Ellsworth co-founded Poppi.
The global probiotic soda market reached $242.1 million in 2023 and is projected to reach $422.4 million by 2031, at a CAGR of 7.1% from 2024 to 2031, driven by rising health consciousness and the increasing popularity of gut-friendly products.
PepsiCo held $8.5 billion in cash and equivalents as of Dec. 28 .It reported a fourth-quarter sales decline of 0.2% to $27.78 billion, missing the analyst consensus estimate of $27.89 billion. Adjusted EPS of $1.96 beat the consensus estimate of $1.94.PepsiCo expects a low-single-digit increase in organic revenue for fiscal 2025 and a mid-single-digit increase in core constant currency EPS.Piper Sandler’s Michael Lavery noted how PepsiCo’s aggressive promotional strategy failed to bear fruit due to weak U.S. consumer spending. However, the analyst highlighted it as a buying opportunity for investors with a long-term time horizon despite the business challenges and negative investor sentiment. Coca-Cola Co KO Chair and CEO James Quincey highlighted in the fourth-quarter reporthow the company acquired a significant market share from PepsiCo.Last November, then President-elect Donald Trump announced Robert F. Kennedy Jr. as his nominee to lead the Department of Health and Human Services (HHS). PepsiCo’s shift toward health-conscious products coincided with Kennedy’s stricter health and nutrition regulations.PepsiCo stock lost close to 10% in the last 12 months.Kennedy met PepsiCo and other company executives this week to address health concerns linked […]
PepsiCo Reportedly In Talks To Acquire Poppi Amid Rising Demand For Probiotic Drinks
