PepsiCo announced plans to acquire Poppi, a leading prebiotic soda brand, for $1.95 billion, including $300 million in anticipated tax benefits. Poppi, founded in 2018, has grown rapidly in the health-conscious beverage market, competing with rival Olipop.

The acquisition aligns with Pepsi’s strategy to expand into functional drinks, especially as soda consumption declines. While Coca-Cola recently launched its own prebiotic soda, Pepsi opted to buy an established brand rather than develop its own.

Poppi, which recently aired a Super Bowl ad, has faced scrutiny over health claims but continues to see strong sales growth. The deal is pending regulatory approval.