PepsiCo to Acquire Soda Brand Poppi for Nearly $2 Billion (2)

PepsiCo Inc. will acquire healthier soda brand Poppi for $1.95 billion, the Purchase, New York-based soda giant announced on Monday, confirming an earlier Bloomberg News report.

The deal includes $300 million in expected cash tax benefits for a net purchase price of $1.65 billion. PepsiCo will make additional payouts if Poppi meets certain performance metrics, according to the announcement.

The “functional soda” category has been growing, especially compared to standard sodas. The lower-sugar beverages can include ingredients not found in standard soda, such as prebiotics, probiotics and added fiber and say they are aimed at improving digestive health. Poppi ...