How Poppi went from a Shark Tank pitch to a $1.95B exit - Equity Recap

Podcast: Equity

Published: 2026-03-11

Duration: 28 min

Guests: Allison Ellsworth

Summary

The founder of Poppi, Allison Ellsworth, shares how she turned a kitchen experiment into a viral beverage brand that sold to PepsiCo for $1.95 billion, highlighting the role of authenticity, TikTok marketing, and resilience in scaling the business.

What Happened

Allison Ellsworth, co-founder of Poppi, explained how the brand originated from solving her personal health issues by creating a palatable apple cider vinegar-based soda. She debuted the idea on Shark Tank while nine months pregnant and secured a deal that changed her life. Launching the brand in March 2020 during COVID, Poppi focused on digital-first strategies, embracing TikTok and grassroots approaches to connect with consumers authentically.

Ellsworth discussed how Poppi's viral TikTok video garnered over 150 million views, clearing shelves overnight. The brand’s success on TikTok, with over 3 billion views, stemmed from its “awkwardly authentic” marketing style, which contrasted sharply with polished campaigns from other brands. The company adapted its messaging based on consumer feedback, shifting from educational content to emphasizing the soda’s taste.

PepsiCo acquired Poppi for $1.95 billion, enabling the brand to leverage Pepsi’s distribution network for global expansion. Ellsworth emphasized that while acquisition was part of the plan for scaling the beverage business, Poppi was built for longevity and cultural relevance. The partnership allowed Poppi to retain its identity while scaling rapidly, including launching in London and securing high-profile brand moments like a Super Bowl ad.

Ellsworth highlighted the importance of humility and listening to consumers in product development. For example, Poppi revamped its root beer flavor after negative feedback, resulting in increased sales. She stressed that embarrassment and vulnerability are key to entrepreneurial success, citing her early days at farmers’ markets pitching apple cider vinegar soda as foundational to her confidence.

The episode touched on Poppi’s bold marketing strategies, including purchasing a Super Bowl ad three days before the game through the remnant market. The campaign was a cultural success and marked Poppi’s transition from a niche product to a mainstream soda brand. The company also balanced influencer partnerships and community-focused initiatives, learning from moments of backlash to stay true to its values.

Ellsworth shared insights into the competitive landscape, noting the emergence of rival brands like Olipop and Coca-Cola’s Simply Spiked. She expressed gratitude for competition, highlighting how it drives awareness for functional soda as a category and pushes innovation across the industry.

Finally, Ellsworth reflected on her journey from pitching on Shark Tank to becoming a shark herself. She prioritizes founders who demonstrate empathy, adaptability, and willingness to take feedback. She also discussed the challenges of due diligence in investment and acquisition processes, offering advice to first-time founders on navigating these complex stages.

Key Insights

• Poppi's first viral TikTok video hit 150 million views and emptied store shelves overnight. Instead of polished campaigns, the brand leaned into an 'awkwardly authentic' style that resonated with consumers, proving relatability can trump perfection in marketing.
• Poppi revamped its root beer flavor after negative feedback from customers, leading to a noticeable sales boost. Instead of doubling down on their original formula, they treated criticism as free R&D and used it to create a better product.
• Poppi bought a Super Bowl ad just three days before the game using the remnant market, a risky move that paid off by solidifying the brand's leap from niche to mainstream. It’s a reminder that calculated last-minute decisions can create iconic cultural moments.
• PepsiCo’s $1.95 billion acquisition of Poppi wasn’t just about scaling—it gave the soda brand access to global distribution while letting it preserve its quirky identity. Keeping core values intact during an acquisition can be the difference between short-term growth and lasting relevance.

Key Questions Answered

How did Allison Ellsworth grow Poppi into a $1.95 billion brand?

Ellsworth scaled Poppi by leveraging TikTok for viral marketing, listening to consumer feedback, and adapting the product’s positioning to emphasize taste. The brand’s acquisition by PepsiCo enabled global distribution and expansion into markets like London.

What role did TikTok play in Poppi's growth, according to Equity podcast?

TikTok was central to Poppi’s marketing strategy, with over 3 billion views driving awareness and sales. The brand’s authentic, unpolished content resonated with consumers, clearing shelves overnight after a viral video.

Why do beverage startups like Poppi often aim for acquisition?

Ellsworth explained that beverage startups need distribution networks to scale, which can typically only be achieved via acquisition by companies like PepsiCo or Coca-Cola. IPOs lack the infrastructure to support widespread logistics for consumer products.