PepsiCo, the beverages giant behind Pepsi-Cola and Gatorade, has acquired prebiotic soda brand Poppi.
The US$1.95bn deal – comprising $300m of anticipated cash tax benefits for a net purchase price of $1.65bn – will let PepsiCo offer “more positive choices” to consumers, according to the conglomerate.
The functional soda brand was created by Allison and Stephen Ellsworth, and combines prebiotics, fruit juice and apple cider vinegar for a low calorie beverage.
Poppi was discovered on US reality television series Shark Tank by Vita Coco investor Rohan Oza.
The brand has been funded by Oza’s CAVU Consumer Partners investment firm from its initial seed round to today.
“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,” said Ram Krishnan, CEO of PepsiCo Beverages US.
“Allison and the Poppi team have built a magnetic brand that is ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth.”
Co-founder Allison said she was confident PepsiCo would “honour what makes Poppi so special while supporting our next phase of growth and innovation”.
Prebiotics help foster growth or activity of beneficial microorganisms, with Poppi’s sodas specifically containing agave inulin and cassava root fibre.
But PepsiCo is not the only global name investing in prebiotic brands and the wider microbiome health trend.
Japanese beauty giant Shiseido acquired London-based microbiome skin care brand Gallinée in 2022.
Dr Marie Drago’s skus contain a complex of prebiotics, probiotics (‘good’ bacteria) and postbiotics (the metabolic byproducts produced by microorganisms) to strengthen the skin’s microbiome.
And, in the same year, Beiersdorf took a majority stake in Belgian life sciences company S-Biomedic, a skin microbiome research and development company, to complement its own research activities in the field.
In 2023, L’Oréal announced its purchase of probiotic and microbiome research firm Lactobio for an undisclosed sum.
Lactobio creates probiotic and postbiotic private label skin care ingredients and operates its own probiotic skin care brand, Bak.
Unilever Ventures, meanwhile, is an investor in Australian microbiome-focused hair care start-up Straand, whose products include a patented prebiotic ingredient called Defenscalp, developed to address dry, itchy skin and dandruff.
Related content: