PepsiCo Buys Poppi For Nearly $2B 👀

Welcome back to This Week in CPG, folks. Here’s what we’re covering this morning:

• Naked Rivals gets acquired 🍋

• Monos taps Adrien Brody 🧳

• New protein shot hits the market 💪

• Celsius launches in two more markets ⚡️

• Actual Veggies launches at Costco 🥕

PepsiCo Buys Poppi For Nearly $2B 👀

The first domino in the better-for-you soda category has fallen. Yesterday, PepsiCo announced that it entered into a definitive agreement to acquire Poppi for $1.95B. The deal includes $300M of anticipated cash tax benefits for PepsiCo, so the net purchase price is actually $1.65B. If you don’t quite understand cash tax benefits, join the club. Thankfully Kiva Dickinson of Selva Ventures offered a useful explanation here. 

When husband-and-wife duo Allison & Stephen Ellsworth launched the beverage brand in 2018, it was originally known as Mother Beverage. Though not too dissimilar from a better-for-you soda, Mother Beverage was housed in an elegant glass bottle and positioned as an infused apple cider vinegar beverage. It was the kind of beverage that would thrive at a farmer’s market but wouldn’t break into the mainstream.

It wasn’t until the Ellsworths appeared on Shark Tank in late 2018 — when marketing guru & savvy beverage investor Rohan Oza bought a 25% stake for $400K — that Mother Beverage began to evolve into Poppi, a modern soda juggernaut. 

Mother Beverage officially rebranded as Poppi in 2020, positioning itself as a fun, approachable, and healthier alternative to other carbonated soft drinks on the market. Soon thereafter, Poppi raised $13.5M in Series A funding from CAVU Consumer Partners, and their revenue surged 500% year-over-year. 

CAVU was co-founded by Rohan Oza, so the guest judge on Shark Tank double-dipped in 2021, then triple-dipped by leading Poppi’s $25M Series B round in 2022. You have to admire Oza’s vision and conviction with Poppi, and it clearly paid off.

According to Oza, “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.” 

So now that Poppi is off the board thanks to PepsiCo, what happens to the other key players in the category? By key players I mean OLIPOP, Culture Pop, and due to its recent growth, Cove Soda. 

OLIPOP is obviously the next most desirable asset in the modern soda set. The brand is profitable, did over $400M in sales in 2024, and like Poppi, is beloved by younger consumers. The $1.85B valuation might be too steep for Coca-Cola, but Keurig Dr Pepper wouldn’t flinch at the price tag. An IPO has been floated as a possible outcome, but doesn’t seem like a plausible one. 

Culture Pop, founded by beverage veteran Tom First in 2020, might be a better fit for Coca-Cola. The company has nationwide distribution, a strong brand, and is largely regarded as the third most desirable asset in the modern soda set.. The purchase price wouldn’t be as eye-popping as Poppi, either. 

Lastly, there’s Cove Soda from Canada. The brand has strong distribution in Canada, a growing presence in the U.S., and a really terrific product. Cove Soda expects $100M in revenue this year, so once again, the price tag wouldn’t be an obstacle for the likes of Coca-Cola or perhaps a strategic like Monster Beverage or Celsius Holdings.

More on the transaction here.

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Deals 💰

Mergers & Acquisitions 

• Naked Rivals, an Australian startup that sells frozen citrus cubes, was acquired by Entyce Food Ingredients for an undisclosed sum. Naked Rivals launched in late 2022 and quickly gained nationwide retail distribution at Coles and Woolworths. The company solves an interesting pain point — people love citrus in their water but cutting and squeezing lemons can be messy business. Smart Company

• Upper Canada Soap, a diversified personal care company, has acquired Look Beauty, a Toronto-based beauty firm and the owner of brands like Masque Bar and Pretty Animalz. Terms of the deal were not disclosed. WWD

Fundraising

• Australian spirits producer Prohibition Liquor raised over $2.6M AUD on equity crowdfunding platform OnMarket. The Adelaide-based company launched in 2015 and has won numerous awards. Food & Drink Business

What’s New 🤩

Apparel, Cosmetics, and Wellness

• Jiajia Sollers, a former hedge fund CFO, launched a new skincare brand called Matter of Monday. The skincare line was designed to combat the modern afflictions of professional life: stress, fatigue, and digital screen damage. For a science-led beauty brand, the packaging is pretty compelling. PR Newswire

• Homecourt, the luxury homecare brand founded by Courteney Cox, is expanding into the laundry category with a number of new products. WWD

• Skincare brand EXPERIMENT is launching a new product today at 12pm EST. Instagram

• Luxury travel brand Monos has tapped Adrien Brody to promote its new aluminum travel collection. PR Newswire

• La Bonne Brosse, a four-year-old French company that produces luxury hairbrushes, opened a boutique in Paris. Instagram

Food, Beverage, and Alcohol

• Dr. Mike Israetel, a competitive bodybuilder and nutrition influencer, launched a protein shot brand called Genius Shot. Each 3 oz shot contains 23g of protein, 90 calories, BCAAs, and zero sugar. Very bullish on this as protein shots are quickly becoming a thing. Late last year, Nestle Health Science launched two protein shots under its Orgain and Boost brands. Stack3d

• Celsius Holdings continues to prioritize international growth. The energy drink brand is launching in Belgium and Luxembourg via an expanded distribution partnership with Suntory. Celsius’ international revenue jumped 39% YoY in Q4. Celsius

• Popular mixers brand Fever-Tree is partnering with Papa Salt Coastal Gin on an RTD cocktail line. Papa Salt was founded by Margot Robbie and a number of her friends in 2023. The Grocer

• Feastables, the fastest-growing chocolate brand on the planet, is becoming OU Kosher Certified in the U.S. PR Newswire

• Anthony Wilson, a former drinks scientist at Diageo, launched an RTD cocktail brand called Ghost Labs. Each can is 5% ABV and contains 110 calories. Ghost Labs is available exclusively in the UK via their website. The Spirits Business

• The Ithaca Hummus x Graza collab is officially dropping later today. I tried this at Expo West and it was terrific. Instagram

• Cupcake Vineyards expanded its product offering with a ready-to-serve mimosa line as well as an alcohol-removed Sauvignon Blanc. BevNET

• Mondelez partnered with Lotus Bakeries to produce Biscoff-branded ice cream products. Food Dive

Data 🖥️

• Cizzle Brands — the owner of CWENCH Hydration and Spoken Nutrition — reported over $5.6M in net sales for the first half of the fiscal year. They also posted an impressive gross margin of 60%. LinkedIn

Distribution News 🚚

• Actual Veggies launched at Costco in the Southeast.

• Aussie suncare brand Naked Sundays launched at Boots in the UK.

• French skincare brand PERS launched at Harrods in the UK.

• Yo Mama’s launched their salad dressing line at Kroger.

• Mas+ by Messi launched in the UK.