Pepsico Inc. is in advanced conversations to buy a healthier soda brandpopAccording to people with knowledge of the matter.
The New York, based drinking regulator in New York, could announce the transaction next week, said one of the people who asked not to be identified in order to discuss confidential information. The purchase price to be discussed is more than 1.5 billion US dollars, said the person.
Pepsico had planned to start its own so-called functional soda under the brand soulboost, but decided to scrap this effort due to earlier indicators that it would not be successful.
While the consultations are in a late stage, they could still be delayed, people said. A representative of Pepsico rejected a statement. A spokesman for Poppi did not answer a request for comments.
The “Functional Soda” category has grown compared to standard lemonades. The drinks with lower sugar can include ingredients that are not contained in standard deaths such as prebiotics, probiotics and added fiber, and say that they aim to improve digestive health.
Functional drinks are “on flames” with Freshdirect based in New York, said Loan Heilner, the Merchandising director of the food dealer. She said that sales have increased by more than 60% compared to the previous year, driven by brands such as Olipop and Poppi. Big brand lemonades have only increased slightly compared to last year, she said. Coca-Cola Co. recently launched its own prebiotic soda, simply pop.
Poppi from Austin was founded by Allison Ellsworth and Stephen Ellsworth. It became known in 2018 when the company – at that time known as a mother – received an investment by Rohan Oza from Cavu Venture Partners on the television programHai tank. A number of celebrities, including Nicole Scherzinger and Ellie Goulding, also supported the company.
Pepsico has recently turned acquisitions of healthier brands. Plans were announced in Octoberto acquireSiete Foods for 1.2 billion US dollars. In the following month it saidBuy the remaining 50%by Sabra Diping Co. and Pepsico-Strauss Fresh Dips & Sreads International GmbH.
“There is a higher awareness of the American consumers of health and well -being,” said Ramon Laguara, Chief Executive OfficerTelephone conferencewith investors.
This story was originally on Fortune.com
