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 said on Monday it would buy prebiotic soda brand Poppi for $1.95 billion, expanding into the "healthier soda" category at a time when the company is battling falling demand for its traditional beverages and snacks.

PepsiCo announced on Monday that it will acquire a prebiotic soda brand called Poppi, which was founded by a family in Austin, Texas. The deal is valued at nearly $2 billion.