PepsiCo (NASDAQ:PEP) announced that it has completed its acquisition of Poppi, worth $1.95 billion. The figure includes an estimated $300 million in expected cash tax benefits, bringing the net purchase price to about $1.65 billion. The agreement also has performance-based revenues that are relevant to achieving specific business objectives.

Poppi is known for its fast-growing prebiotic soda series and is now Pepsico, Inc. (NASDAQ:PEP) has been part of a series of recent acquisitions, including brands such as Siete and Sabra, which reflect the company's growing interest in consumer care products. The deal represents another major move in Pepsi's broader portfolio transformation strategy, highlighting its focus on delivering delicious and functional products. The acquisition was originally announced in March, when Pepsico, Inc. (NASDAQ:PEP) confirms that a certain agreement to obtain the brand has been signed.

Poppi was founded in 2018 by Allison and Stephen Ellsworth. The brand’s beverage is made from apple cider vinegar, prebiotic apple cider vinegar, and contains only 5 grams of sugar. Although traditional soda consumption in the United States has declined over the past 20 years, prebiotic soda, led by brands such as Poppi, has been popular among health-centric consumers in recent years.

Ram Krishnan, CEO of Pepsi Beverage, made the following statement on the acquisition:

“POPPI represents a compelling strategic fit in our short- and long-term vision for the future of beverages. Its rapid growth, strong consumer engagement and differentiated functional positioning make it a dynamic complement to our portfolio. We are excited to expand Poppi’s momentum and unlock new growth through our capabilities – we’re just starting out.”

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