Poppi just sold for $1.6 billion

PepsiCo is buying Poppi, the popular prebiotic soda brand, in a $1.65 billion deal.

PepsiCo is buying Poppi, the popular prebiotic soda brand, in a $1.65 billion deal. The move marks PepsiCo’s further shift into the “better for you” category as consumers shy away from sugar-filled drinks and unhealthy snacks. In January, the company bought Siete Foods, which makes gluten-free chips for $1.2 billion, and PepsiCo bought the remaining half of the Sabra hummus brand it didn’t own late last year. “We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,” said Ramon Laguarta, CEO of PepsiCo, in a statement Monday. “More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. Poppi is a great complement to our portfolio transformation efforts to meet these needs,” he added. Harnessing PepsiCo’s major distribution agreements and marketing budget could give Poppi an advantage over rival Olipop, however both brands are still relative newcomers and have room to grow in terms of sales and awareness. Despite growing in popularity, only about 5% of consumers drink prebiotic sodas regularly, according to Zappi, a consumer research firm.