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PepsiCo has completed its acquisition of functional soda brand Poppi in a deal valued at $1.95 billion, including $300 million in anticipated tax benefits.

The net purchase price stands at $1.65 billion, with an additional earnout tied to performance targets.

The move, which was first announced in March, adds another better-for-you brand to PepsiCo’s portfolio, which already includes health-focused names like Siete and Sabra.

Poppi, known for its prebiotic sodas made with fruit juice and apple cider vinegar, has gained traction among Gen Z and millennial consumers thanks to its low-sugar formulations and strong social media presence.

Ram Krishnan, CEO of PepsiCo Beverages US, said: "Poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages. Its rapid growth, strong consumer engagement and differentiated functional positioning make it a dynamic addition to our portfolio."

"We are excited to scale Poppi's momentum and unlock new growth through our capabilities – we're just getting started."

Chris Hall, CEO of Poppi, added: "PepsiCo's belief in the Poppi brand is a tremendous validation of the work we've done to advance our mission. Their partnership and resources will be instrumental as we scale to our next phase of growth. We're incredibly grateful to our passionate community and look forward to welcoming even more consumers into the Poppi portfolio."

Financial advisors on the deal included Centerview Partners and JP Morgan for PepsiCo, and Goldman Sachs for Poppi. Legal advisors included Cravath, Swaine & Moore for PepsiCo and Cooley for Poppi.