|
“More than ever, consumers are looking for convenient and
great-tasting options that fit their lifestyles and respond to
their growing interest in health and wellness,” PepsiCo Chairman
and CEO Ramon Laguarta said in a statement.
PepsiCo said the transaction includes $300 million of
anticipated cash benefits, bringing the net purchase price to
$1.65 billion.
Allison Ellsworth, the co-founder of Austin, Texas-based Poppi,
said the combination with PepsiCo will expand Poppi’s reach.
“We can’t wait to begin this next chapter with PepsiCo to bring
our soda to more people – and I know they will honor what makes
Poppi so special while supporting our next phase of growth and
innovation,” Ellsworth said in a statement.
Ellsworth developed Poppi – then known as Mother Beverage -- in
her kitchen in 2015 because she loved soda but was tired of the
way it made her feel. She mixed fruit juices with apple cider
vinegar, sparkling water and prebiotics and sold the drink at
farmer's markets.
The brand took off in 2018 when Ellsworth and her husband
pitched it on “Shark Tank.” An investor on the show, Rohan Oza,
took a stake in Mother Beverage and undertook a major rebrand.
Poppi, with its brightly-colored, fruit-forward cans, was born.
“We’re beyond thrilled to be partnering with PepsiCo so that
even more consumers across America, and the world, can enjoy
Poppi,” said Oza, the co-founder CAVU Consumer Partners, which
has also invested in beverage brands like Oatly and Bai.
But it hasn’t all been smooth sailing for Poppi. Last summer,
multiple class-action lawsuits were filed against the brand by
consumers who said its products don’t improve gut health as much
as their marketing suggests.
Poppi denied those claims, and noted that it removed references
to “gut health” from its packaging in late 2023. But according
to a court filing last week, Poppi has agreed to a settlement
that includes an $8.9 million fund for payments to consumers. A
hearing on the settlement is scheduled for May 8.
PepsiCo shares rose nearly 2% in morning trading Monday.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
