How Allison Ellsworth Sold Poppi to PepsiCo for $1,950,000,000

Mar 25, 2025

Poppi

Poppi is a company specializing in prebiotic sodas that combine fruit juices, apple cider vinegar, and prebiotics to create low-calorie, low-sugar beverages.

Exit: $1,950,000,000

Buyer: PepsiCo

Date: 17/03/2025

Founder’s Backstory
Launch
Traction & KPI
Exit
The Buyer
Currently working on
Connect

1. Who is Allison Ellsworth?

Allison Ellsworth was born on January 5, 1988.

She is the co-founder and Chief Brand Officer of Poppi, a prebiotic soda brand known for its low-sugar, gut-friendly beverages that combine fruit juices, apple cider vinegar, and prebiotics. She sold Poppi to PepsiCo for $1.95 billion in March 2025.

Allison is currently leading Poppi’s brand strategy under PepsiCo’s ownership, focusing on expanding the reach of functional beverages in the mainstream market.

2. What did Allison do before launching Poppi that contributed to his success?

Studied Environmental Science at Oklahoma State University:
- Allison Ellsworth earned a degree in Environmental Science, giving her a strong foundation in research, sustainability, and health-conscious decision-making.
- This scientific background helped her understand the health benefits of natural ingredients, which later played a role in her product development
Worked in Land Management and Environmental Compliance:
- Before entering the beverage industry, Ellsworth worked in land management and environmental compliance within the oil and gas sector.
- This experience helped her develop business negotiation skills, regulatory knowledge, and resilience, all of which became valuable in launching a consumer brand.
Personal Health Struggles Led to a Passion for Functional Ingredients:
- After facing health issues, Ellsworth turned to natural remedies and gut health research, leading her to explore the benefits of apple cider vinegar (ACV).
- She experimented with creating a better-tasting version of ACV drinks, blending her scientific knowledge with a consumer-focused approach to wellness.

By combining her scientific background, corporate experience, and personal passion for health, Allison Ellsworth developed the skills and mindset necessary to enter the functional beverage market and challenge the traditional soda industry.

3. How did Allison come to launch Poppi?

Allison Ellsworth was searching for a natural remedy for her persistent health issues when she discovered the benefits of apple cider vinegar. Wanting to make it more enjoyable to drink, she began experimenting with different flavor combinations in her kitchen.

After perfecting a refreshing and gut-friendly recipe, she started selling her homemade beverage at local farmers’ markets, where it quickly gained a loyal following.

In 2015, she co-founded Poppi, a prebiotic soda brand that made apple cider vinegar both accessible and delicious. With its bold flavors and health benefits, Poppi resonated with consumers looking for a better-for-you alternative to traditional soft drinks.

4.What were the key milestones reached by Poppi?

Growth

2015: Allison and Stephen Ellsworth founded Mother Beverage in Austin, Texas, creating apple cider vinegar-based health drinks sold at local farmers’ markets.
2018: The couple appeared on “Shark Tank,” securing a $400,000 investment from Rohan Oza, leading to a rebranding of the company to Poppi.
2023: Poppi’s annual sales surpassed $100 million, reflecting a 122% year-over-year growth.
2024: The brand expanded into Canada, marking its international debut.

Funding

2021: Raised $13.5 million in a Series A funding round.
2022: Secured $25 million in a Series B funding round to support nationwide expansion.

Strategic Developments

2023: Launched the “Soda’s Back” advertising campaign, enhancing brand visibility across major markets.
2024: Entered into partnerships with celebrities such as Post Malone and sponsored the Los Angeles Lakers, further elevating brand recognition.

5. What were Poppi KPI right before selling?

Annual Revenue: Exceeded $500 million in 2024, positioning Poppi as a leader in the U.S. gut-health drinks market.

Market Share: Captured approximately 1% of the total carbonated soft drink market by early 2025.
Retail Presence: Available in over 120 retailers across the United States and Canada.
Product Portfolio: Offered 14 flavors, each containing no more than 5 grams of sugar per serving, catering to health-conscious consumers.

6. The Exit

On March 17, 2025, Poppi got acquired by PepsiCo for $1,950,000,000.

7. How did Allison decide to sell Poppi to PepsiCo?

By 2023, Poppi had expanded its product line to 14 flavors and achieved annual sales surpassing $100 million. The brand’s vibrant marketing, especially on platforms like TikTok, further propelled its popularity.

In March 2025, PepsiCo expressed interest in acquiring Poppi to enhance its “better-for-you” product offerings amid declining traditional beverage sales. PepsiCo proposed a $1.95 billion deal, including $300 million in anticipated cash tax benefits, effectively valuing the acquisition at $1.65 billion.

The opportunity to leverage PepsiCo’s extensive distribution network and resources to further Poppi’s growth while maintaining its brand identity ultimately convinced Allison and her team to accept the offer.

8. The Buyer

PepsiCo is a global food and beverage leader headquartered in Purchase, New York.

Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, the company has expanded its portfolio to include iconic brands such as Lay’s, Doritos, Cheetos, Gatorade, and Quaker.

In March 2025, PepsiCo announced its acquisition of Poppi, a fast-growing prebiotic soda brand, for $1.95 billion. This strategic move aims to enhance PepsiCo’s presence in the functional beverage market, catering to increasing consumer demand for health-focused products.

At the time of the acquisition, PepsiCo reported $92 billion in net revenues for 2024, while Poppi had achieved annual sales surpassing $100 million in 2023. The transaction reflects PepsiCo’s commitment to diversifying its portfolio and adapting to changing market trends, particularly the growing interest in health and wellness-oriented products.

9. Why did they acquire Poppi?

PepsiCo acquired Poppi for several strategic reasons:

Expanding into Functional Beverages: Poppi is a fast-growing prebiotic soda brand that combines prebiotics, fruit juice, and apple cider vinegar to create a low-calorie, low-sugar soda. The acquisition allowed PepsiCo to strengthen its presence in the health-focused beverage market.

Responding to Consumer Health Trends: With increasing consumer demand for gut-health and wellness-oriented products, Poppi provided PepsiCo with an opportunity to tap into the growing functional beverage segment.

Diversifying Product Portfolio: Poppi’s unique positioning as a better-for-you soda alternative enabled PepsiCo to cater to a broader range of consumer preferences and enhance its lineup of non-traditional soft drinks.

Leveraging Brand Growth and Popularity: Poppi had experienced rapid growth and built a loyal consumer base, making it an attractive brand for PepsiCo to scale through its extensive distribution network

By acquiring Poppi, PepsiCo aimed to strengthen its leadership in the functional beverage space, align with evolving consumer preferences, and drive future growth in the health and wellness category.

10. What were the key factors of success that allowed Allison Ellsworth to sell Poppi to PepsiCo for $1,950,000,000?

Innovative Product Offering

Poppi carved out a niche in the beverage industry by introducing a prebiotic soda that combines fruit juice, apple cider vinegar, and prebiotics. This formulation appealed to health-conscious consumers seeking flavorful alternatives to traditional sugary sodas.
Strategic Branding and Marketing

After rebranding from Mother Beverage to Poppi in 2020, the company adopted vibrant packaging and a modern image that resonated with a younger demographic. Leveraging social media platforms and influencer partnerships, Poppi effectively increased brand awareness and cultivated a dedicated customer base.
Rapid Revenue Growth and Market Penetration

By 2023, Poppi’s annual sales surpassed $100 million, with its products available in over 120 retailers nationwide. This swift growth demonstrated the brand’s scalability and solidified its position in the functional beverage market.
Strategic Partnerships and Investments

Poppi’s appearance on “Shark Tank” in 2018 led to a $400,000 investment from Rohan Oza, a renowned marketer known for building successful beverage brands. This partnership provided not only capital but also strategic guidance, propelling Poppi’s growth trajectory.
Alignment with Consumer Health Trends

As consumers increasingly sought healthier beverage options, Poppi’s low-calorie, low-sugar sodas with functional health benefits aligned perfectly with market demands. This positioning made it an attractive addition to PepsiCo’s portfolio, aiming to diversify into better-for-you products.
Successful Navigation of Legal Challenges

Despite facing class-action lawsuits over health benefit claims, Poppi proactively addressed these challenges by modifying its marketing strategies and settling disputes. This adaptability maintained consumer trust and brand integrity, paving the way for a smooth acquisition process.

11. What is Allison currently working on?

Following PepsiCo’s acquisition of Poppi for $1.95 billion in March 2025, Allison expressed enthusiasm about leveraging PepsiCo’s resources to bring Poppi to a broader audience. She continues to lead Poppi’s brand strategy, focusing on creative marketing initiatives and product innovation.