{"id":2976,"date":"2023-02-19T16:11:14","date_gmt":"2023-02-19T16:11:14","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-7-5-mergers-and-acquisitions\/"},"modified":"2025-05-12T19:02:03","modified_gmt":"2025-05-12T19:02:03","slug":"apply-it-7-5-mergers-and-acquisitions","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-7-5-mergers-and-acquisitions\/","title":{"raw":"Apply It 7.5: Mergers and Acquisitions","rendered":"Apply It 7.5: Mergers and Acquisitions"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what mergers and acquisitions are&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:13185,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what mergers and acquisitions are<\/span><\/li>\r\n\t<li>Understand why businesses merge and acquire other businesses<\/li>\r\n<\/ul>\r\n<\/section>\r\n<section class=\"textbox example\" aria-label=\"Example\">\r\n<h2>Pepsi Acquired Poppi<\/h2>\r\n<p>In March 2025, PepsiCo bought a smaller beverage company called Poppi in a deal worth about $1.95 billion.[footnote]PepsiCo. 2025. \u201cPepsiCo to Acquire Poppi.\u201d PepsiCo. March 17, 2025. https:\/\/www.pepsico.com\/our-stories\/press-release\/pepsico-to-acquire-poppi03172025[\/footnote]\u00a0Poppi isn\u2019t a traditional soda like Pepsi or Coke. Its drinks are made with apple cider vinegar and fruit juice and are promoted as \u201cprebiotic,\u201d and beneficial to \"gut health.\"[footnote]Groth, Leah. 2025. \u201cPepsi Just Bought a New Soda Brand in Major Acquisition.\u201d Eat This Not That. March 21, 2025. https:\/\/www.eatthis.com\/pepsi-poppi-acquisition-2025\/[\/footnote] Poppi is especially popular with younger consumers who want healthier options.[footnote]Id.[\/footnote]<\/p>\r\n<p>Companies like PepsiCo often buy other companies to grow and stay competitive. Here are four big reasons why Pepsi bought Poppi:<\/p>\r\n<ol>\r\n\t<li><strong>To Offer Healthier Drinks<\/strong><br \/>\r\nMore people\u2014especially young adults\u2014are choosing drinks with less sugar and more health benefits. Buying Poppi helps PepsiCo meet that demand.<br \/>\r\n<br \/>\r\n<\/li>\r\n\t<li><strong>To Stay Ahead of the Competition<\/strong><br \/>\r\nPepsi wants to be a leader in the new \u201cfunctional beverage\u201d market, which includes drinks that do more than taste good (like helping with digestion or energy). Buying Poppi helps PepsiCo grow in that area faster than building a brand from scratch.<br \/>\r\n<br \/>\r\n<\/li>\r\n\t<li><strong>To Reach New Customers<\/strong><br \/>\r\nPoppi is already popular with Gen Z consumers. Pepsi hopes it can use Poppi\u2019s appeal to connect with new customers that traditional sodas might not attract.<br \/>\r\n<br \/>\r\n<\/li>\r\n\t<li><strong>To Grow Faster<\/strong><br \/>\r\nPoppi was already growing fast, and PepsiCo has the money, marketing, and shelf space to help it grow even faster around the world.[footnote]PepsiCo 2025[\/footnote]<\/li>\r\n<\/ol>\r\n<\/section>\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"300\"]3920[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what mergers and acquisitions are&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:13185,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what mergers and acquisitions are<\/span><\/li>\n<li>Understand why businesses merge and acquire other businesses<\/li>\n<\/ul>\n<\/section>\n<section class=\"textbox example\" aria-label=\"Example\">\n<h2>Pepsi Acquired Poppi<\/h2>\n<p>In March 2025, PepsiCo bought a smaller beverage company called Poppi in a deal worth about $1.95 billion.<a class=\"footnote\" title=\"PepsiCo. 2025. \u201cPepsiCo to Acquire Poppi.\u201d PepsiCo. March 17, 2025. https:\/\/www.pepsico.com\/our-stories\/press-release\/pepsico-to-acquire-poppi03172025\" id=\"return-footnote-2976-1\" href=\"#footnote-2976-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a>\u00a0Poppi isn\u2019t a traditional soda like Pepsi or Coke. Its drinks are made with apple cider vinegar and fruit juice and are promoted as \u201cprebiotic,\u201d and beneficial to &#8220;gut health.&#8221;<a class=\"footnote\" title=\"Groth, Leah. 2025. \u201cPepsi Just Bought a New Soda Brand in Major Acquisition.\u201d Eat This Not That. March 21, 2025. https:\/\/www.eatthis.com\/pepsi-poppi-acquisition-2025\/\" id=\"return-footnote-2976-2\" href=\"#footnote-2976-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a> Poppi is especially popular with younger consumers who want healthier options.<a class=\"footnote\" title=\"Id.\" id=\"return-footnote-2976-3\" href=\"#footnote-2976-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/p>\n<p>Companies like PepsiCo often buy other companies to grow and stay competitive. Here are four big reasons why Pepsi bought Poppi:<\/p>\n<ol>\n<li><strong>To Offer Healthier Drinks<\/strong><br \/>\nMore people\u2014especially young adults\u2014are choosing drinks with less sugar and more health benefits. Buying Poppi helps PepsiCo meet that demand.<\/p>\n<\/li>\n<li><strong>To Stay Ahead of the Competition<\/strong><br \/>\nPepsi wants to be a leader in the new \u201cfunctional beverage\u201d market, which includes drinks that do more than taste good (like helping with digestion or energy). Buying Poppi helps PepsiCo grow in that area faster than building a brand from scratch.<\/p>\n<\/li>\n<li><strong>To Reach New Customers<\/strong><br \/>\nPoppi is already popular with Gen Z consumers. Pepsi hopes it can use Poppi\u2019s appeal to connect with new customers that traditional sodas might not attract.<\/p>\n<\/li>\n<li><strong>To Grow Faster<\/strong><br \/>\nPoppi was already growing fast, and PepsiCo has the money, marketing, and shelf space to help it grow even faster around the world.<a class=\"footnote\" title=\"PepsiCo 2025\" id=\"return-footnote-2976-4\" href=\"#footnote-2976-4\" aria-label=\"Footnote 4\"><sup class=\"footnote\">[4]<\/sup><\/a><\/li>\n<\/ol>\n<\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm3920\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=3920&theme=lumen&iframe_resize_id=ohm3920&source=tnh&show_question_numbers\" width=\"100%\" height=\"300\"><\/iframe><\/section>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-2976-1\">PepsiCo. 2025. \u201cPepsiCo to Acquire Poppi.\u201d PepsiCo. March 17, 2025. https:\/\/www.pepsico.com\/our-stories\/press-release\/pepsico-to-acquire-poppi03172025 <a href=\"#return-footnote-2976-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-2976-2\">Groth, Leah. 2025. \u201cPepsi Just Bought a New Soda Brand in Major Acquisition.\u201d Eat This Not That. March 21, 2025. https:\/\/www.eatthis.com\/pepsi-poppi-acquisition-2025\/ <a href=\"#return-footnote-2976-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-2976-3\">Id. <a href=\"#return-footnote-2976-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><li id=\"footnote-2976-4\">PepsiCo 2025 <a href=\"#return-footnote-2976-4\" class=\"return-footnote\" aria-label=\"Return to footnote 4\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":21,"menu_order":28,"template":"","meta":{"_candela_citation":"[]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2947,"module-header":"apply_it","content_attributions":[],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2976"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":13,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2976\/revisions"}],"predecessor-version":[{"id":9192,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2976\/revisions\/9192"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2947"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2976\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=2976"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=2976"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=2976"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=2976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}