Poppi: Allison and Stephen Ellsworth. From Farmers Market Vinegar Drink to $2B Soda Sensation - How I Built This with Guy Raz Recap

Podcast: How I Built This with Guy Raz

Published: 2025-09-22

Duration: 1 hr 7 min

Summary

This episode explores the transformation of a simple vinegar drink into a successful prebiotic soda brand called Poppi, which was eventually sold to Pepsi for nearly $2 billion. The journey highlights the challenges and triumphs faced by founders Allison and Stephen Ellsworth as they navigated the beverage industry.

What Happened

In this episode of How I Built This, Guy Raz delves into the inspiring story of Allison and Stephen Ellsworth, who started their entrepreneurial journey by experimenting with apple cider vinegar for personal health benefits. Allison discovered that while vinegar helped her digestion, its taste was off-putting, leading her to combine it with fruit juices. This mix caught the attention of friends, and soon the couple decided to take it to the next level by bottling their creation, initially named Mother Beverage, for a local farmers market in Dallas.

Their big break came when they learned that Shark Tank was scouting for entrepreneurs in Dallas. Just as they were preparing to showcase their product, the COVID-19 pandemic hit, leading to the cancellation of their launch event. Despite this setback, the couple's resilience paid off as they pivoted their strategy, rebranding their product to Poppi and successfully positioning it in the market. Their innovative approach and commitment to quality helped them grow the brand into a soda sensation, ultimately attracting the attention of Pepsi, who acquired Poppi for nearly $2 billion.

Key Insights

Key Questions Answered

How did Allison and Stephen Ellsworth start their business?

Allison Ellsworth began by experimenting with apple cider vinegar to help with her digestion. After adding fruit juices to improve the taste, she shared her concoction with friends, which led her to realize the potential for a product. Together with her husband Stephen, they decided to bottle their drink and applied to sell it at a local farmers market in Dallas.

What challenges did they face during the COVID-19 pandemic?

Just as they were set to launch Poppi at a major event, the COVID-19 pandemic struck, leading to the cancellation of their launch. This was a devastating moment for the Ellsworths, as they had invested significant resources into preparing for this event. However, they adapted quickly, pivoting their strategy to focus on online marketing and distribution.

What was the significance of their appearance on Shark Tank?

The Ellsworths learned that Shark Tank was looking for entrepreneurs in Dallas, which was a pivotal opportunity for them. Although their initial launch was interrupted, appearing on the show later helped to elevate their brand visibility and credibility, contributing to their overall success in the competitive beverage market.

How did Poppi differentiate itself in the beverage market?

Poppi carved out a niche in the beverage market by positioning itself as a prebiotic soda that not only tasted good but also had health benefits due to its apple cider vinegar base. This unique selling proposition, combined with innovative branding and effective marketing strategies, helped the brand resonate with health-conscious consumers.

What led to the acquisition of Poppi by Pepsi?

The rapid growth and popularity of Poppi caught the attention of major players in the beverage industry. As the brand established itself as a leader in the health-focused soda segment, Pepsi recognized its potential and decided to acquire it for nearly $2 billion, marking a significant milestone in the Ellsworths' entrepreneurial journey.