PepsiCo rises on nearly $2 billion deal to buy prebiotic soda brand Poppi

Frito-Lay maker PepsiCo's PEP.O shares rise 2% to $151.58

PEP says it will buy prebiotic soda brand Poppi for $1.95 billion, expanding in the "healthier soda" category at a time when the company is battling falling demand for its traditional beverages and snacks

The deal with Poppi includes $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion, co says, without disclosing additional terms of the deal

Rival Coca-Cola KO.N is also expanding its Simply brand to launch a prebiotic soda called "Simply Pop" as young Americans are increasingly turning to healthier sodas as part of a broader shift to fitness

Up to last close, PEP had fallen 9.8% in the past 12 months