As the recent trend persists, a major soda company has announced an acquisition of a smaller company that makes drinks that are a lot less sugary. Earlier today, Snapple spent $1.7 billion on flavored water maker Bai Brands, and now it is reported that PepsiCo is acquiring KeVita, a brand known for its kombucha products.
Kombucha is fermented tea, which results in a beverage that is lightly carbonated and tastes a bit vinegary. The fermenters market the beverages based on their low calorie count and supposed benefits to health and digestion, and not necessarily their pleasant flavor.
The drinks attract a premium price, and PepsiCo noted in a press release that the acquisition of Kevita will “expand [its] health and wellness offerings in the premium chilled beverage space.” We guess that with its new kombucha offering PepsiCo is too cool to say “refrigerator.”
Kombucha drinks have spiked in popularity recently, hitting all the local grocery store shelves. At about 4 dollars a bottle, these drinks aren’t cheap, but certainly worth the extra few dollars to shed some of that sugar. The purchase price (of the deal) wasn’t disclosed officially, but Fortune magazine reports that it was about $200 million. That’s refreshing.