PepsiCo. has agreed to purchase popular prebiotic soda brand Poppi for a net price of $1.65 billion, the beverage company announced.

PepsiCo said it is buying the prebiotic soda brand Poppi for nearly $2 billion, sending shares of the food and beverage company 1.6% higher. The news comes as Pepsi and its rivals have been seeking to expand their product portfolios to drive further growth as economic conditions and changing tastes among consumers weigh on demand.

Over the last few years, emerging healthier soda alternatives have disrupted the traditional soda market like never before. They are growing in popularity due to newer generations' more health-conscious approach and attention to ingredients in the products they consume.