PepsiCo Slashes Poppi Bonus Valuation Amid Growth Slump

PepsiCo Inc. significantly reduced the estimated value of performance-based bonus payments linked to its acquisition of the prebiotic soda brand Poppi. In a regulatory filing, the company valued the contingent consideration at $12 million as of September 5, a steep drop from $117 million in June and $278 million in December.

The valuation cut indicates that Poppi is failing to meet the growth benchmarks required to trigger earnout payments. PepsiCo acquired Poppi in May 2025 for $1.9 billion in cash, with an additional $300 million available if the brand hits specific financial targets by the third quarter of 2027.

This adjustment occurs as PepsiCo faces broader headwinds in its North America Beverage segment, which saw a slight decline in organic volume during the third quarter. Despite the slowing growth and missed targets, PepsiCo continues to invest in Poppi through mainstream marketing and the expansion of its product line into relaxation and caffeine beverages.