PepsiCo, Dr Pepper Snapple on the Acquisition Track
Alternative beverages are clearly on the radar screens of major beverage companies with probiotics and antioxidants out in front lately.
PepsiCo, Inc. entered into a definitive agreement to acquire KeVita, a leading North American creator of fermented probiotic and kombucha beverages. The transaction will expand PepsiCo's health and wellness offerings in the premium chilled beverage space.
KeVita is a leader in fermented probiotic and kombucha beverages with three product lines and live probiotics in every bottle. With over two dozen flavors of Sparkling Probiotic Drink, Master Brew Kombucha and Apple Cider Vinegar Tonic, all KeVita drinks are certified organic, non-GMO, gluten-free and vegan. KeVita has a loyal and rapidly growing consumer base in the fast growing functional beverage space.
Upon closing, which is subject to regulatory approval, KeVita will continue to operate independently with its production and bottling facilities located in Oxnard, California.
Meanwhile, Dr Pepper Snapple Group, Inc. reached an agreement to acquire Bai Brands, LLC and its complete portfolio of high-growth premium antioxidant infused beverages.
Bai provides a strong platform to incubate and grow better-for-you beverages throughout the non-carbonated and carbonated beverage sectors.
Bai offers a family of premium better-for-you beverages. The Company's product portfolio spans across several high-growth beverage categories including enhanced water, carbonated flavored water, coconut water and premium ready-to-drink teas. With its Bai, Bai Bubbles, Cocofusion and other innovative brands, Bai is positioned for expanding growth in key beverage segments.
Bai will operate within the Packaged Beverages segment and continue to be led by founder Ben Weiss.
The transaction is expected to close in the first quarter of 2017. The boards of both companies have approved the transaction.