PepsiCo announced on Monday that it has entered into an agreement to purchase prebiotic soda brand Poppi for $1.95 billion.

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.

PepsiCo is acquiring prebiotic soda brand Poppi for almost $2 billion, the beverage giant said on Monday. Purchase, New York-based PepsiCo had reportedly planned to start its own so-called functional soda under its Soulboost brand,