Mergers and Acquisitions in the Beverage Industry

Celsius isn’t just buying another brand—they’re playing offense. They just locked in a $1.8B cash and stock deal for Alani Nutrition, but this move is way bigger than adding new products. This is M&A as a strategic weapon—expanding distribution, buying market position, and staying ahead of the competition. CELSIUS has already proven they know how to scale. Five years ago, they were a niche fitness drink doing $75M in sales. Now, they’re a $10B powerhouse, outpacing Red Bull and Monster Energy in key markets. Here’s how: - They redefined energy drink #marketing. Competitors chased gamers and extreme sports. Celsius owned the wellness culture, turning gyms, influencers, and TikTok into a sales machine. - They leveraged PepsiCo’s distribution muscle. A $550M investment in 2022 plugged them into 200,000+ retail locations—sales doubled in a year. - They made energy drinks aspirational. No sugar, no artificial junk, “clean energy” positioning. They’re not just a drink, they’re a lifestyle. Now they’re running the same play with Alani Nutrition, a brand crushing it with female buyers. With this move, Celsius blows past $2B in annual sales and cements their spot as the next dominant player in energy & functional beverages. This is how smart M&A is done—not just chasing revenue, but buying cultural relevance, distribution power, and brand loyalty. The energy drink space is consolidating fast. The question is—who’s next? (Also… be honest. Who’s got a #Celsius or #AlaniNU on their desk right now?) #Acquisitions

What happens when a legacy CPG giant like PepsiCo acquires a fast-growing disruptor like Poppi? It’s a blueprint for the future of FMCG. PepsiCo has spent years evolving its portfolio, shifting toward healthier, functional, and better-for-you options. From acquiring Siete Family Foods to Sabra Dipping Company, and now Poppi, they’re doubling down on what today’s consumers want: ✅ Functional Ingredients: Poppi taps into the gut health boom, projected to reach $72B+ globally by 2032 (Source: Market Research Future® (MRFR)). Consumers aren’t just looking for hydration—they want drinks that boost immunity, digestion, and energy. ✅ Premiumization of Soda: Traditional soda sales have declined by 12% in the last decade, while functional and prebiotic sodas are growing 35% YoY (Source: Beverage Digest). Brands like Poppi prove that consumers will pay a premium for added health benefits. ✅ The Power of Challenger Brands: Nearly 60% of Gen Z & Millennials say they trust emerging brands more than Big CPG (Source: McKinsey & Company). PepsiCo knows the future belongs to brands that feel authentic, mission-driven, and community-led. So, The “Big Food vs. Challenger Brand” battle is over-it’s now about collaboration. Legacy brands need disruptors to stay relevant. Health & wellness aren’t trends-they’re becoming industry standards. If a brand isn’t innovating in functional benefits, it’s already falling behind. The next wave of acquisitions? Expect strategic buys in functional beverages, gut health, and personalized nutrition. This is just the beginning. Are Big CPGs moving fast enough to keep up with evolving consumer demands? #FMCG #PepsiCo #Poppi #GutHealth #ConsumerTrends #MergersAndAcquisitions #FoodAndBeverage

The food deal market is bumping after PepsiCo gobbled up yet another better-for-you brand with this week’s Poppi acquisition for a total of $1.95 billion. That eye-popping price tag is a drop in the bucket for Pepsi, which has some $20 billion in earnings annually. But it’s a huge deal for emerging food and drink brands and their founders. One investor described it to me as “a new north star” for any entrepreneur or investor looking for an exit. Poppi has become quite the success. What started in 2018 as a farmers market brand selling apple cider vinegar drinks from Austin-based couple Allison and Stephen Ellsworth has transformed into the brightly colored cans of prebiotic soda that now sell nationwide, thanks especially to the brand pivot incubated within Poppi chairman Rohan Oza’s CAVU Consumer Partners. Combine that marketing prowess with Poppi’s lineup of familiar and exciting flavors, and you can understand why the brand became a hot target for the beverage conglomerates that dominate what we drink. BNP Paribas’ Kevin Grundy, who covers Pepsi along with other consumer brands, says Americans drink around 180 gallons of beverages a year, and that’s why Pepsi shelled out for Poppi. The brand resonates with a core consumer that skews younger and has found repeat sales in an up-and-coming and attractive category. “It’s filling a void in their portfolio,” says Grundy. “Beverage consumption is a zero-sum game.” Drink or be drank, in other words. Which is why Grundy says Pepsi, Coca-Cola, Keurig Dr Pepper and other package goods conglomerates will continue to pay up, as long as the insurgent brand can deliver where it counts. And the food industry is built on great rivalries—so don’t forget about Olipop. The Poppi acquisition could actually be a good thing for Olipop, which has roughly the same amount in retail sales as Poppi. Now it could be an even hotter acquisition target. & much more in today's newsletter!

🚀 PepsiCo just dropped nearly $2 billion on Poppi. Here’s why it’s a game-changer. The functional beverage space is heating up, and PepsiCo isn’t sitting on the sidelines. With the $1.95B acquisition of Poppi, they’re making a bold move to stay ahead of the health-conscious, Gen Z-fueled beverage revolution. So, what does this mean for Poppi? Let’s break it down: 🥤 Bigger Shelves, Bigger Reach - PepsiCo’s massive distribution machine = Poppi in more stores, more fridges, and maybe even global expansion. 🔥 Faster Innovation - PepsiCo’s R&D firepower could mean new flavors and product lines rolling out at lightning speed. 📢 Stronger Brand Muscle - With PepsiCo’s marketing expertise (and budget 💰), Poppi is set to level up its brand awareness and audience engagement. ⚖️ Navigating Legal Hurdles - Poppi has faced scrutiny over health claims - PepsiCo’s legal and regulatory teams will help clean things up and strengthen consumer trust. 🌱 Tapping Into Wellness Trends - Consumers are thirsty for functional drinks. 31% of U.S. consumers want non-alcoholic beverages with added benefits, and over half of soda drinkers see functional sodas as the healthier choice (source Mintel). Poppi is perfectly positioned to ride this wave. 🎯 Takeaway for CPG Brands ➡️ Health + taste = winning formula. Consumers want benefits, but they won’t compromise on flavor. ➡️ Digital-first brands (like Poppi) are redefining how products connect with consumers. PepsiCo just bought into this playbook. 💡 What’s your take? Is this a smart move for PepsiCo? And who’s next on the acquisition radar? Let’s discuss 👇 #CPG #BeverageTrends #PepsiCo #Poppi #FunctionalDrinks #ConsumerTrends #Innovation