PepsiCo is reportedly in final stage talks to buy the US-based better-for-you soda brand Poppi, with a deal said to be close.
According to Bloomberg, the Mountain Dew owner is looking to buy the brand for more than $1.5bn, a source familiar with the matter told the publication today (14 March).
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They said a deal could be announced next week, though several unnamed sources also told the publication the process could be delayed.
Neither PepsiCo nor Poppi had responded to Just Drinks‘ requests for comment at the time of writing.
Last year, a report from Bloomberg suggested The Coca-Cola Co. was pursuing a purchase of Austin, Texas-based Poppi.
Founded by husband and wife Stephen and Allison Ellsworth, Poppi’s low-calorie, low-sugar sodas come in 15 flavours, and are sold in retailers across the US including Kroger, Walmart, Costco, Target and Whole Foods Market.
Last month, Olipop, a local competitor of Poppi, was valued at $1.85bn after raising $50m in a Series C funding round, led by JP Morgan Private Capital’s Growth Equity Partners.
In a statement at the time, Olipop said the cash injection marked its “final anticipated round of equity financing”, after becoming profitable “in early 2024”.
Olipop CEO Ben Goodwin said: “It’s staggering and thrilling to have achieved a $1.85bn valuation after just five to six short years in market.”
JP Morgan Growth Equity Partners managing partner Christopher Dawe described Olipop as “one of the fastest growing beverage companies to reach this scale”.
Olipop also confirmed that it fell short of its $500m sales target projected in May, generating over $400m in revenue for fiscal year 2024.
In 2023, CNBC quoted Goodwin as saying PepsiCo and Coca-Cola had made an approach about a potential sale.
Last month also saw Coca-Cola introduce its first prebiotic soda line, launching the Simply Pop brand in the US.
Simply Pop, initially set to go on sale “at retail in select regions” and via Amazon, is targeted at a product set that includes brands such as Olipop and Poppi.
