Dr Pepper Snapple to buy antioxidant brand

Dr Pepper Snapple Group agreed to acquire Bai Brands for $1.7 billion, snapping up a maker of fruit-flavored, antioxidant-infused beverages in a bid to attract health-focused consumers.

The acquisition, expected to close in the first quarter of next year, will decrease earnings per share by three cents in 2017 and add to profit in 2018, Dr Pepper Snapple said Tuesday in a statement.

Beverage makers even larger than Dr Pepper Snapple are getting in on the healthier-beverage trend as well. PepsiCo, which owns the Quaker Oats facility in Cedar Rapids, said Tuesday that it agreed to buy KeVita, which makes fermented probiotic and kombucha beverages.

While terms of the PepsiCo-KeVita deal weren't disclosed, Fortune pegged the price tag at about $200 million, without citing its source for the information.

Dr Pepper and PepsiCo's moves are an attempt to entice consumers who are shunning sugary drinks. While per capita soda consumption in the United States fell to a three-decade low in 2015, beverage makers whose products don't include sugar or artificial sweeteners have found opportunities to grow.

Closely held Bai Brands, founded in 2009, is projected to generate $425 million in net sales next year.

'In a relatively short time, Bai has carved out a leadership position in the enhanced-water category and has now extended that success into other fast-growing and profitable categories,” Larry Young, CEO of Dr Pepper Snapple, said in the statement. 'We're equally impressed with their innovation pipeline, which will continue to meet the needs of consumers seeking great tasting, low-calorie beverages with natural flavors and no artificial sweeteners.”