PepsiCo’s Poppi acquisition proves just how rewarding disrupting traditional categories and building a strong brand can be, even in highly competitive spaces.

PepsiCo said Monday it would 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. Shares of PepsiCo were up 1.5% in morning trading.

PepsiCo said Monday it’s acquiring the prebiotic soda brand Poppi for $1.95 billion. The acquisition gives PepsiCo a fast-growing brand in the popular functional beverage category.