PepsiCo will acquire healthier soda brand Poppi for $1.95 billion, the Purchase, New York-based soda giant announced on Monday, confirming an earlier Bloomberg News report.

The deal includes $300 million in expected cash tax benefits for a net purchase price of $1.65 billion. PepsiCo will make additional payouts if Poppi meets certain performance metrics, according to the announcement.

The “functional soda” category has been growing, especially compared to standard sodas. The lower-sugar beverages can include ingredients not found in standard soda, such as prebiotics, probiotics and added fiber and say they are aimed at improving digestive health. Poppi uses prebiotics, fruit juice and apple cider vinegar and its drinks have 5 grams of sugar or less per serving.

Americans spending rose 0.2% last month

U.S. shoppers stepped up their spending just a bit in February after a sharp pullback the previous month, signaling that Americans are shopping more cautiously as concerns about the direction of the economy mount.

Retail sales rose just 0.2% in February, a small rebound after a sharp drop of 1.2% in January, the Commerce Department said Monday. Sales rose at grocery stores, home and garden stores, and online retailers. Sales fell at auto dealers, restaurants, and electronics stores.

The small increase suggests Americans may be growing more wary about spending as the stock market has plunged and President Donald Trump’s tariff threats and government spending cuts have led to widespread uncertainty among consumers and businesses.

Some economists were relieved the numbers weren’t worse. Still, many expect consumer spending will grow just 1% to 1.5% at an annual rate in the first three months of this year, far below the 4.2% gain in the final quarter last year.

“Consumer spending is on track to slow sharply this quarter, but not by as much as we previously feared,” Stephen Brown, an economist at Capital Economics, a consulting firm, said in an email.

Homebuilder sentiment falls to 7-month low

Confidence among U.S. homebuilders slid this month to the lowest level since August, dragged down by worry over tariffs, higher construction costs and economic uncertainty heading into the spring selling season.

An index of housing market conditions from the National Association of Home Builders and Wells Fargo fell 3 points to 39 in March. That was weaker than all estimates in a Bloomberg survey of economists.

Measures of current sales of single-family homes and prospective-buyer traffic, dropped to their lowest levels since the end of 2023. Meantime, a gauge of expectations for the next six months held at 47.

The mood among the contractors has grown more guarded following some exuberance over President Donald Trump’s election, which had reflected his promises to cut regulations and support faster growth in the economy.

Instead, tariffs threaten to boost costs of building materials, particularly lumber, raising the risk that home prices will remain elevated. In one positive development, mortgage rates have declined six straight weeks and are now at the lowest level this year, according to the Mortgage Bankers Association.

The March survey revealed that builders see the tariffs potentially boosting prices by $9,200 per home, according to Robert Dietz, the group’s chief economist.

Compiled from Bloomberg and Associated Press reports.