From Kitchen to $1.95B: How Poppi Disrupted the Soda Industry

In May 2025, PepsiCo acquired Poppi, a prebiotic soda brand, for $1.95 billion, a deal that included an estimated $300 million in cash tax benefits. The remarkable ascent of Poppi, from its humble beginnings in founder Allison Ellsworth’s kitchen to a billion-dollar acquisition, offers valuable lessons for entrepreneurs and a glimpse into the evolving landscape of the functional beverage market.

The Genesis of Poppi: A Personal Health Journey

Allison Ellsworth’s journey began not with a desire to disrupt the soda industry, but with a personal health challenge. After years of struggling with digestive issues, skin problems, and fatigue, and finding limited help from traditional medicine, Ellsworth turned to researching alternative solutions. She discovered the potential benefits of apple cider vinegar and sought a palatable way to incorporate it into her diet.

Experimenting with recipes, Ellsworth combined fruit juices, prebiotics, and sparkling water, initially testing her creations at local farmers’ markets. Within three weeks, a buyer from Whole Foods approached her, recognizing the potential of her apple cider vinegar-based beverage, then known as Mother Beverage. By 2017, Mother Beverage was available in Whole Foods stores, and the company generated approximately $500,000 in revenue by 2018.

Shark Tank and the Rebrand to Poppi

In 2018, Ellsworth secured a $400,000 investment for 25% equity on Shark Tank from guest Shark Rohan Oza, known for his successful work with brands like Vita Coco and Vitaminwater. The company underwent a rebrand in 2020, changing its name to Poppi and transitioning from glass bottles to colorful aluminum cans. This strategic shift, coupled with a focus on digital marketing, propelled Poppi’s growth.

Leveraging TikTok and Building a Community

Poppi’s national launch in March 2020 coincided with the beginning of COVID-19 lockdowns, forcing the company to abandon traditional marketing strategies. Ellsworth embraced a digital-first approach, particularly focusing on TikTok. She shared her personal story, including her health struggles and experiences on Shark Tank, building a strong connection with consumers. Her content went viral, amassing over three billion views of her face on the platform.

Ellsworth emphasizes the importance of building a community around the brand, fostering a loyal following that extended beyond simply purchasing the product. This community engagement manifested in sold-out merchandise drops and successful collaborations with retailers like Target.

The “Three Cs” of Scaling Success

Ellsworth attributes Poppi’s rapid growth to three key factors: culture, community, and creative. She stresses the importance of moving quickly, staying attuned to cultural trends, and prioritizing brand building. Poppi achieved $500 million in annual revenue by 2024, demonstrating the effectiveness of this approach.

Key Takeaways for Entrepreneurs

Ellsworth offers several key insights for aspiring entrepreneurs:

• Embrace Embarrassment: She believes that overcoming the fear of failure and being willing to put yourself out there is crucial for building confidence and achieving success.
• Professionalize Early: Don’t delay hiring key personnel, such as HR professionals and a CFO, to support rapid growth.
• Prioritize Branding: Invest in building a strong brand identity from the outset.
• Focus on Process, Platform, and People: Establish robust processes, leverage technology, and build a talented team.

Looking Ahead

The acquisition by PepsiCo provides Poppi with a “Ferrari for distribution,” expanding its reach beyond its existing presence in the U.S., Canada, and Mexico. As the functional beverage market continues to expand—expected to reach $339.6 billion by 2030— Poppi is well-positioned to capitalize on this growth and further revolutionize the soda industry.