Poppi Founder Allison Ellsworth on Selling Her $500 Million Brand: 'You're Happy But You Have Anxiety'

"You’re happy but you have anxiety," said Allison Ellsworth, reflecting with Fortune on PepsiCo's $1.95 billion acquisition of the neon-canned prebiotic soda she once brewed at home. The comment summed up her mixed emotions about selling the brand.

Poppi vaulted from a farmers market stand to an industry disruptor in less than a decade, generating more than $500 million in revenue last year and attracting celebrity investors eager to cash in on the gut-health boom.

From Kitchen Jars To Shark Tank

Ellsworth began mixing apple cider vinegar, fruit, and sparkling water in 2015 to ease her stomach troubles. Two years later, she and her husband, Stephen Ellsworth, sold the concoction at farmers markets in Austin, Texas. 

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By 2018, the pair pitched the drink—then called Mother Beverage—on ABC's "Shark Tank," landing a $400,000 check from investor Rohan Oza. The rebrand to Poppi followed in 2020 with bold neon cans and catchy TikTok campaigns.

That social approach paid off. Poppi now sits in 36,000 stores and 120 national retailers such as Target (NYSE: TGT), Whole Foods, and Costco (NASDAQ: COST). Revenue surpassed $500 million last year as the company's Instagram and TikTok community swelled to about 1.2 million followers. 

Each 12‑ounce can carries 3 grams of fiber and 5 grams of sugar, according to Poppi.  That places the soda between traditional colas and kombucha. Celebrities such as Post Malone and Olivia Munn back the brand.

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Pepsi Ride Shifts Into High Gear

PepsiCo's purchase also carries an earn‑out pegged to future sales goals. "There were places we couldn't get in before, like sports arenas and certain fast casual restaurants … Now we have a Ferrari underneath us for distribution," Ellsworth told Fortune earlier this year.

The acquisition also gives PepsiCo a direct stake in the surging prebiotic segment, which saw U.S. retail sales jump from $33 million in January 2022 to $777 million this past January.

Health Claims Face New Tests

Success has invited scrutiny. Poppi's parent, VNGR Beverage, agreed in March to an $8.9 million settlement that aims to end claims the soda exaggerated gut benefits. A judge granted preliminary approval, and a final approval hearing is scheduled for November, according to ClaimDepot. The agreement, which requires clearer labels, allows Poppi to deny wrongdoing.

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Rival Coca‑Cola (NYSE: KO) joined the fray in February with Simply Pop, a five‑flavor prebiotic line. Analysts at Zion Market Research expect the global functional‑beverage market to rise from $175.5 billion in 2022 to $339.6 billion by 2030, at an 8.6% annual pace.

Ellsworth remains upbeat. "We are not just a soda," she told Fortune, pointing to Poppi's online community and influencer investors. Yet she acknowledged the nerves that come with letting a creation fly: "You want to see it flourish, but you want to hold on."

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