Brands
PepsiCo pops $1.95bn for trendy gut-friendly fizz
MUMBAI: PepsiCo has opened its corporate wallet to quench its thirst for growth in the better-for-you drinks market. The American beverages giant announced it will acquire poppi, the prebiotic soda upstart that has captivated wellness-minded millennials, for a fizzy $1.95 billion—though tax benefits will reduce the actual outlay to $1.65 billion.
The acquisition marks another strategic pivot for the soft drinks titan as it attempts to wean itself off sugary legacy brands and catch the health-conscious wave sweeping through beverage aisles. Poppi, with its apple cider vinegar formulation and Instagram-friendly packaging, has become something of a darling among the kombucha crowd.
“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 said PepsiCo chairman & chief executive Ramon Laguarta. “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.”
The acquisition represents a fairytale ending for poppi’s founders, Allison and Stephen Ellsworth, who brewed their first batches in their Texas kitchen before landing an investment on American television programme “Shark Tank” from guest judge Rohan Oza and his Cavu Consumer Partners from its initial seed round to today.
“As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand’s unique intersection with wellness and culture is a perfect addition to our portfolio,” said PepsiCo Beverages US CEO Ram Krishnan. “Allison and the poppi team have built a magnetic brand that’s ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand paired with our commercial capabilities will drive continued growth and innovation for years to come.”
“When I created poppi in our kitchen, it was fueled by a desire to create a better-for-you soda,” said poppi co-founder Allison Ellsworth. “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. I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible.”
“poppi is a true testament to the American Dream! From the kitchen to Shark Tank to becoming an iconic brand, this couldn’t have been done without the amazing founders Allison and Stephen Ellsworth, the incredible team in place led by CEO Chris Hall, the unmatched support of Cavu’s uncommon team led by Stevie Clements, and the extraordinary poppi community,” said Cavu Consumer Partners co-Founder Rohan Oza and guest shark on ABC’s Shark Tank. “We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy poppi – a truly modern soda for the next generation.”
With no more than five grams of sugar per serving and what the company calls “cultural cache”, poppi has captured a loyal following among consumers who find traditional sodas too sweet but still crave the satisfaction of carbonation. Its range includes reimagined classics like cola and root beer alongside trendier flavours such as raspberry rose.
The transaction, which includes potential additional earnout payments tied to performance targets, is still subject to regulatory approval.
For PepsiCo, which generated nearly $92 billion in revenue last year, the acquisition represents more than just another brand in its portfolio. It signals the company’s recognition that yesterday’s fizzy drinks might not satisfy tomorrow’s consumers—particularly those who expect their beverages to do more than merely refresh.
Whether the company can maintain poppi’s cool factor while scaling it through its industrial distribution machine remains to be seen. Previous attempts by beverage giants to nurture acquired brands have sometimes gone flat.
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
