Kombucha Startup Exit

PepsiCo bought KeVita startup for its emotional brand imaging

Kombucha Startup Exit

KeVita startup manufactures a range of products all based on the health benefits of probiotics - including sparkling probiotics, kobucha and vinegar tonics.

PepsiCo initially took a minority stake and distribution deal in KeVita and then decided to aquire the natural beverage manufacturer to aquire a health-conscious drink to complement its traditional soft drinks which consumers were turning away from. KeVita’s slogan “Revitalise from the Inside” was exactly the emotional brand image PepsiCo was looking for.

Indry Nooyi, chairwoman and CEO of Pepsico realised that it was important to allow KeVita to continue to operate independently - rather than following the trend of larger companies making changes to the smaller company they purchase. KeVita really understands kombucha and its fermentation process so it made sense for them to keep their original marketing department and sales people. Instead PepsiCo have focussed on helping with distribution channels, increasing KeVita’s reach.

As Joel McMinn, KeVita senior manager says :”They’ve definitely opened up a lot of doors for us. Not saying there isn’t any pushback from some of our retailers that don’t like the big corporate.”

Following the takeover, PepsiCo hope to double KeVita’s sales this year.