Major M&A Deal: Pepsico Spends $1.95 Billion To Acquire Poppi – The “Gut Health Battle” Officially Begins

On March 17, PepsiCo officially announced a $1.95 billion acquisition deal for Poppi – a leading brand in the booming prebiotic soda segment, a type of carbonated beverage infused with gut-friendly prebiotics.

This is a strategic move by PepsiCo to refresh its product portfolio and revive growth momentum in its traditionally slowing soda segment. Around the same time, Coca-Cola launched Simply Pop, a direct competitor in the same category. This clearly signals that the “gut health battle” among beverage giants is now in full swing.

📈 Why is Poppi attracting so much attention?

• 💸 Annual revenue has reached $500 million, fueled by creative TikTok marketing and a breakthrough appearance on Shark Tank US.

• 🧠 Sharp positioning: Once marketed as a “gut health drink,” Poppi has evolved into a healthier soda option – low in sugar and calories – appealing to a younger, health-conscious, and active demographic.

• 📺 The Super Bowl 2024–2025 campaigns mark a brand transformation, emphasizing Poppi as a “new-era soda – enjoy without guilt.”

💥 Deal Highlights:

✅ Value: $1.95 billion, including $300 million in expected tax benefits (net deal value ~ $1.65 billion)
✅ Structure: Full acquisition (100% equity), with performance-based earnout provisions
✅ Leverage: PepsiCo will utilize its vast distribution network to scale Poppi globally and solidify its leadership in the new soda wave

📌 What this means for the FMCG M&A landscape:

This deal highlights a clear trend:

🔄 Legacy brands are proactively acquiring fast-growing startups to restructure portfolios and stay ahead of evolving consumer demands.
🌱 M&A is not just about market share, but the fastest way to acquire proven products, engaged communities, and strong brand equity.
💡 The “health-forward” trend is no longer optional – it is the future of consumer goods.

💼 Vietnam M&A Advisory continues to track high-impact global M&A activity and supports investors in tapping into opportunities in Vietnam – a market where consumer and startup ecosystems are rapidly evolving.

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