PepsiCo has announced its acquisition of prebiotic soda brand Poppi for $1.95 billion, targeting the growing 'healthier soda' market as traditional soda demand falls. This strategic move comes as young consumers shift towards fitness-oriented beverages, with competitors like Coca-Cola launching similar products. Poppi, known for its unique ingredients including prebiotics and apple cider vinegar, has seen impressive growth, with sales rising 122% year-on-year. Industry analysts believe this acquisition will bolster PepsiCo’s presence in the fast-evolving beverage landscape, enabling it to better compete with rivals and address declining sales in its core product categories.
PepsiCo's acquisition of Poppi, a prebiotic soda brand for $1.95 billion, signifies a strategic shift towards healthier beverage options amid declining demand for traditional products.
The deal reinforces PepsiCo's commitment to expanding its footprint in the burgeoning 'modern' soda segment while counteracting Coca-Cola and Keurig Dr Pepper's market share gains.
Poppi's innovative blend of prebiotics, fruit juice, and apple cider vinegar positions it as a health-conscious alternative, reflecting changing consumer preferences in the soda industry.
J.P. Morgan analyst Andrea Teixeira highlighted the deal as pivotal for PepsiCo, aiming to shore up a CSD portfolio that has faced declining market shares in recent years.
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