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

Multinational giant PepsiCo has acquired Poppi, a brand of prebiotic "healthy" sodas that are part of the growing functional beverage market.

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.