To expand its "healthier soft drinks" business, PepsiCo acquires the Poppi $PEP (+0,58 %) is acquiring the Poppi beverage brand. The transaction is worth just under two billion dollars, the drinks and snacks provider announced on Monday. Poppi specializes in products with fibre and a lower sugar content, which are intended to promote intestinal health and are becoming increasingly popular among the young US population.
According to analysts at BNP Paribas, Poppi's sales more than doubled in the three months to February compared to the same period last year. The company's share of the US soft drink market now stands at one percent.
Due to the rapidly growing demand, Pepsi's arch-rival Coca-Cola has launched its own fiber drink under the name "Simply Pop". Suppliers such as Celsius and Keurig Dr Pepper want to expand their market share by acquiring smaller beverage brands.
PepsiCo is looking for new growth drivers, as many US consumers have turned away after several rounds of price increases. Instead, they are turning to cheaper alternatives.
Source: Handelsblatt
