PepsiCo has acquired prebiotic soda brand Poppi for $2 billion, with net costs of $1.65 billion after tax benefits. This strategic move strengthens PepsiCo's position in the growing health beverage market.

Poppi, known for its low-calorie prebiotic sodas containing fruit juice and less than 5 grams of sugar per serving, gained national recognition after appearing on ABC's "Shark Tank." The Austin-based brand has seen significant growth, making it an attractive acquisition target.

The prebiotic soda market is expected to reach $54.5 million by 2034, driven by increasing consumer interest in gut health and functional beverages. This trend has also attracted Coca-Cola, which recently launched its Simply Pop prebiotic soda line in select markets.

The acquisition aligns with PepsiCo's strategy to expand its healthier beverage portfolio, which already includes:

• Naked Juice (fruit smoothies and cold-pressed juices)
• Kevita (fermented probiotic drinks)
• Bubly (zero-calorie sparkling water)

Consumers can expect several benefits from this acquisition:

• Increased availability of Poppi products
• New flavors and product innovations
• Enhanced distribution network
• Potential price benefits from economies of scale

This acquisition represents PepsiCo's commitment to meeting growing consumer demand for healthier, functional beverages while maintaining its competitive edge in the evolving beverage market. The move positions PepsiCo as a leader in the prebiotic soda category, with established brand recognition and market presence through Poppi.

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