PepsiCo to Acquire Probiotic Drink Maker KeVita

PepsiCo Inc. said Tuesday that plans are afoot to acquire North America’s leading producer of fermented probiotic and kombucha beverages, KeVita, expanding the corporation’s health and wellness portfolio in the premium child beverage segment.

Fortune Magazine reported that the price of the deal is about $200 million, and that the transaction builds on an existing minority stake in KeVita that PepsiCo acquired in 2013. Following the close of the sale, KeVita will become a part of Pepsi’s Premium Nutrition business.

“I am pleased to welcome KeVita to the PepsiCo family. Under the leadership CEO Bill Moses, KeVita has become an innovative, high-growth brand that is transforming the functional beverage space,” general manager and vice president of PepsiCo Premium Nutrition Chris Lansing in a statement. “This announcement is further evidence of PepsiCo’s focus on delivering Performance with Purpose by continuing to evolve our health and wellness offerings to meet customers’ changing needs.”

KeVita, founded in 2009, produces three product lines of fermented probiotic and kombucha beverages in over two dozen flavors. All of the brand’s drinks are certified organic, non-GMO, gluten-free, and vegan.

“Joining the PepsiCo family will give us an opportunity to extend KeVita’s trend-forward beverages to a broader audience, while staying committed to our core values,” the chief executive officer and co-founder of KeVita, Bill Moses, said in a statement. “We’re looking forward to more customers experiencing the KeVita brand and to leveraging PepsiCo’s marketing and distribution capabilities.”

Following the regulatory approval, production of KeVita products will continue at the company’s existing manufacturing and bottling facilities in Oxnard, CA.

Fortune said the move is part of PepsiCo’s pivot toward meeting increasing demand for “functional” beverages, drinks the offer nutritional benefits.

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