Pepsico has announced a plan to step up the health drink market and to buy the controversial prebiotic soft drink brand Poppi for no less than $ 2 billion.
Poppi soft drink, which costs $ 2.49 per can, has collected an important supporter, including celebrities such as Jlo and Paris Hilton who have inked lucrative advertising with the makers of the drink
It claims to be 'better for you' because of the two grams of prebiotic fibers that are in every can – reportedly stimulate healthy bacteria in the intestine that are important for a large number of vital health functions.
However, the brand has had to deal with considerable setbacks in recent months – after it has been struck with a $ 5 million lawsuit on claims that the 'healthy' drink has no benefits and is filled with sugar.
And the news of the acquisition on Monday ran a few Poppi fans.
“Bummer & Poppi have been purchased by Pepsico-Great companies change the quality!” said one person.
'Poppi has just purchased Pepsi bought. I think it's great how all comments were like you're done. Man, I like how today's society knows how large companies kill us, another said.
A third person added: 'The care is that Pepsi will change the ingredient list that will make it just like another mediocre aspartame products that Pepsi cannot sell to its customers, which is why they have bought Poppi. It is a sad day because the last soda alternative has disappeared. '
Pepsico -President and CEO Ramon Laguarta (photo) unveiled a plan to buy prebiotic soft drink brand Poppi for no less than $ 2 billion
Poppi claims to be 'better for you' because of the two grams of prebiotic fibers that are in every gaze
The acquisition gives Pepsico a fast -growing brand in the popular functional beverage category.
“More than ever, consumers are looking for useful and great tasting options that fit their lifestyle and respond to their growing interest in health and well-being,” said Pepsico chairman and CEO Ramon Laguarta.
Pepsico said that the total acquisition includes $ 300 million in expected cash benefits, so that the net purchase price is brought to $ 1.65 billion.
Allison Ellsworth, the co-founder of Poppi in Austin, in Texas, said that the combination with Pepsico will expand the range of Poppi.
“We can't wait to start this next chapter with Pepsico to bring our soft drink to more people – and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation,” said Ellsworth.
Ellsworth developed Poppi – then known as Mother Beverage – in her kitchen in 2015 because she loved soft drinks, but was tired of the way it felt her.
She mixed fruit juices with apple cider vinegar, sparkling water and prebiotics and sold the drink at farmers' markets.
The brand left in 2018 when Ellsworth and her husband threw it on 'Shark Tank'.
An investor in the show, Rohan Oza, took an interest in Mother Beverage and undertook a large rebrand. Poppi, with his brightly colored, fruit-forward cans, was born.
“We are more than happy to work with Pepsico, so that even more consumers throughout America and the world can enjoy Poppi,” said Oza, the co-founder Cavu Consumer Partners, who has also invested in alcoholic brands such as Oatly and Bai.
Poppi Soda, who costs $ 2.49 per can, has collected an important supporter, including celebrities such as JLO and Paris Hilton
Pepsico said that the transaction includes $ 300 million in expected cash benefits, which means that the net purchase price is brought to $ 1.65 billion
This year Poppi bought a commercial in the Super Bowl for the second consecutive year and paid up to $ 8 billion for the position.
Prebiotic soft drinks have started with consumers thanks to claims that they help good bacteria grow in the intestines, although these health benefits have not been definitively proven.
Poppi is currently in settlement interviews about a $ 5 million lawsuit that was brought last year, claiming that his products are not as favorable for the intestine as advertised, CNBC reported.
A group of dissatisfied customers and nutritionists are accused of selling 'sugared water' under the guise of a intestinal reinforcement.
The claimants in the Class Action right say that two grams of fiber is not enough to help someone unless a person drinks about four cans every day.
At that time, the 20 grams of sugar – the equivalent of three cookies – would compensate for any benefit of the prebiotic.
The lawsuit claims that the company has misled customers by overestimating its health benefits arising from the absorption of agave -inulin, a kind of fiber extracted from plants and a prebiotic.
