PepsiCo Slashes Valuation of Poppi Bonus Payouts as Growth Slows

3-line summary

• PepsiCo sharply cut the estimated value of earnout payments tied to its 2025 acquisition of soda brand Poppi, as the brand is seen falling short of the growth targets needed to trigger the bonus, according to Investing.com. The valuation, based on a Monte Carlo simulation of discounted future revenue and margin projections, fell from a $278 million book value in December to a $117 million estimate in June, and to a $12 million fair value as of September 5.
• Cumulative pre-tax adjustments totaled $105 million over 12 weeks and $266 million over 36 weeks. PepsiCo acquired Poppi for $1.9 billion in cash in May 2025, with up to an additional $300 million payable if undisclosed financial targets are met by the third quarter of 2027.
• PepsiCo's North American beverage division posted third-quarter revenue of $7.7 billion, with organic volume slightly down; CEO Ramon Laguarta said he was not satisfied with the carbonated soft drinks business's performance.

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