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A deal is expected to be announced this week, said a Bloomberg report.
Pepsico’s stock was in focus on Friday after a Bloomberg report said the consumer giant was in talks to buy probiotic beverages maker Poppi, but retail sentiment lagged the development.
The deal is valued at about $1.5 billion, according to the report, which cited people familiar with the deal and added that conversations between the parties are in advanced stages.
A deal is expected to be announced this week, said the report.
Founded by Stephen and Allison Ellsworth, Poppi’s makes low-sugar sodas sold in several stores such as Whole Foods Market, Target and Costco.
After the development, Sentiment on Stocktwits, however, was subdued, with retail sentiment ending in the bearish zone on Friday. Message volume was in the low zone.
According to media reports, PepsiCo has previously pursued functional soda brand Soulboost but abandoned the effort. The Coca-Cola Co. was also reportedly wooing Poppi last year, according to media reports.
Separately, Jefferies last week downgraded PepsiCo to ‘Hold’ from ‘Buy’ with a price target of $170, down from $171.
PepsiCo and several other consumer companies have reportedly sought an exemption from tariffs on certain ingredients not available from U.S. suppliers.
For Q4, Pepsi’s earnings per share (EPS) came in at $1.96, above consensus estimates of $1.94. Its revenue, however, stood at $27.8 billion, missing estimates of $27.9 as quoted by Wall Street analysts.
Pepsi shares are down 2.3% year-to-date.
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