Dr Pepper Snapple (NYSE: DPS) announced an agreement to purchase antioxidant beverage maker Bai Brands for $1.7 billion on the same day PepsiCo (NYSE: PEP) confirmed rumors that it will buy KeVita, a company that makes probiotic drinks. Pepsi is paying around $200 million to fully acquire the company, according to Fortune. The two deals come on the heels of several major US cities passing taxes on sugar-sweetened drinks, creating a difficult environment for major beverage companies to sell soda.
Bai makes low-calorie antioxidant-infused drinks using coffee fruit as a sweetener. Founded in 2009, the New Jersey-based company received roughly $21.4 million in VC funding from backers including CAVU Venture Partners, plus a $15 million investment from Dr Pepper Snapple last year that gave the beverage giant a 3% stake in the company. KeVita, also founded in 2009, makes sparkling probiotic beverages meant to support digestion. The Southern California company most recently raised a $6 million round in 2014 from investors including SPK Capital Partners and The Ecosystem Integrity Fund.
Article by PitchBook
