Leveraging its distribution channels to launch an aggressive offensive, PepsiCo, Inc. is betting on Poppi to achieve the next "billion-dollar brand."

PepsiCo, Inc. (PEP.US) is ambitiously striving to build Poppi into the next breakthrough brand with annual sales exceeding one billion dollars - a strategic goal clearly outlined by PepsiCo, Inc. executive Ram Krishnan at a recent event. Krishnan also emphasized that PepsiCo, Inc.'s recent initiatives to transfer franchise rights will create more space for Poppi to expand its distribution channels. The food and beverage giant completed the acquisition of Poppi in May of last year - with a base transaction price of 1.65 billion dollars, which could go up to 1.95 billion dollars if certain performance targets are met, including a contingent consideration tied to performance. Krishnan commented on the acquisition, stating: "Poppi is a perfect fit for our short, medium, and long-term beverage strategy. Its rapid growth, strong consumer interaction, and unique functional positioning make it a dynamic new addition to our product portfolio. We are leveraging PepsiCo, Inc.'s capabilities to amplify Poppi's growth momentum and unlock new opportunities for growth - this is just the beginning." It is understood that Poppi was originally launched in 2018 under the brand name "Mother Beverage" and was renamed to Poppi after receiving an investment from CAVU Consumer Partners. The probiotic soda category to which it belongs is valued at around 440 million dollars and is the fastest-growing segment in low-sugar beverages, containing dietary fiber (prebiotics), probiotics, fruit juice, and Apple Inc. vinegar. Since 2020, Poppi's sales have tripled annually, reaching 100 million dollars in 2023. Analysts predict that the probiotic soda market will nearly double by 2030. PepsiCo, Inc.'s beverage brands with annual sales exceeding one billion dollars include Pepsi, Diet Pepsi, Gatorade, Tropicana, Aquafina, Bubly, SodaStream, and Sierra Mist.