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PepsiCo Cuts Poppi Bonus Estimate to $12M as U.S. Soda Sales Slow

BearishMedium impact
PEP$126.68 0.56%KO$89.79 1.98%KDP$32.75 3.12%

PepsiCo, Inc. (NASDAQ:PEP) has drastically reduced its estimated performance-based payout for prebiotic soda brand Poppi, as the brand falls short of growth milestones required for full bonus payments. A securities filing reveals PepsiCo now values these contingent payments at approximately $12 million as of September 5. That represents a steep decline from $117 million projected in June and $278 million estimated in December. PepsiCo previously acquired full ownership of Poppi for $1.9 billion in cash, plus $200 million in contingent consideration.

The lower estimate reflects wider struggles in PepsiCo's North American soft drink division, which management cited as the central gap in its third-quarter performance. While overseas sales remained strong, domestic weakness has dragged down overall results. PepsiCo shares have declined 9.56% year to date through October 9, 2026, underperforming competitors such as Coca-Cola Company (NYSE:KO) and Keurig Dr Pepper Inc. (NASDAQ:KDP), which rose 28.39% and 17.00% over the same timeframe.

Going forward, market participants will be monitoring PepsiCo's ability to fix its U.S. soft drink execution while working to boost organic growth to 3.1% through volume expansion and continued international strength.

Key points

  • PepsiCo, Inc. (NASDAQ:PEP) lowered its estimated Poppi bonus payout to about $12 million due to missed growth targets.
  • The updated estimate drops sharply from $117 million reported in June and $278 million forecast in December.
  • PepsiCo initially bought Poppi for $1.9 billion in cash with $200 million in contingent consideration.
  • Slow U.S. soft drink sales created a domestic performance gap despite strong international demand in Q3.
  • PepsiCo shares fell 9.56% year to date through October 9, 2026, trailing rival beverage makers.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why did PepsiCo reduce its payout estimate for Poppi?

PepsiCo lowered the estimated payout because Poppi missed the growth targets required to qualify for performance bonus payments amid a slowdown in U.S. soft drink sales.

How much did PepsiCo pay to acquire Poppi?

PepsiCo acquired full ownership of Poppi for $1.9 billion in cash, plus up to $200 million in contingent consideration.

How has PepsiCo stock performed compared to peers in 2026?

PepsiCo shares fell 9.56% year to date through October 9, 2026, while Coca-Cola rose 28.39% and Keurig Dr Pepper gained 17.00%.