The Texas-based company has established a niche within the fast-growing functional drinks space, with its 14 different flavours combining prebiotics, fruit juice and apple cider vinegar to create a low calorie soda with no more than five grams of sugar per serving.

Poppi was founded by husband and wife duo Allison and Stephen Ellsworth, before being discovered on Shark Tank by Rohan Oza and funded by CAVU Consumer Partners.

The deal includes $300 million of anticipated cash tax benefits for PepsiCo, as well as an additional potential earnout consideration subject to the achievement of certain performance milestones within a specified period after closing of the transaction.

The transaction remains subject to customary closing conditions, including regulatory approval.

“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, chair and CEO at PepsiCo.

“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.”

Meanwhile, Poppi co-founder Allison Ellsworth added: “When I created Poppi in our kitchen, it was fuelled by a desire to create a better-for-you soda. We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional soda that stands the test of time.

“We believe Poppi is the soda that will be embraced for generations to come, and we’re beyond grateful to the amazing Poppi team, our partners who believed in us from the very beginning and most importantly our incredible community.

“We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honour what makes Poppi so special while supporting our next phase of growth and innovation.”