Poppi: Allison and Stephen Ellsworth. From Farmers Market Vinegar Drink to $2B Soda Sensation
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode tells the remarkable story of Allison and Steven Ellsworth, who built Poppy from a homemade apple cider vinegar drink at a Dallas farmer's market to a $2 billion soda brand acquired by Pepsi. (04:04) Starting as "Mother Beverage" in 2016, the company began when Allison developed digestive issues while working in oil and gas and discovered that apple cider vinegar helped her feel better. (14:16) The couple's journey includes landing on Shark Tank, securing investment from Rohan Oza, and executing a complete rebrand to Poppy in 2020.
- Main themes include entrepreneurial resilience, the power of rebranding, leveraging social media (especially TikTok), and creating an entirely new "modern soda" category in the functional beverage space.
Speakers
Allison Ellsworth
Allison is the co-founder of Poppy (formerly Mother Beverage) who began her career working in oil and gas as a "landwoman," researching mineral rights and land ownership in small towns across the US. She developed the original apple cider vinegar drink recipe to address her own digestive health issues and has become known for her innovative use of TikTok marketing, helping drive Poppy's viral growth.
Steven Ellsworth
Steven is the co-founder of Poppy who previously worked in corporate roles including Wells Fargo before finding his passion managing a snowboard shop in Salt Lake City. He brings technical expertise to the business, particularly in manufacturing and production processes, and describes himself as having been "unemployable in the corporate world" due to his entrepreneurial mindset.
Key Takeaways
Turn Personal Health Solutions Into Business Opportunities
Allison's digestive health issues led her to experiment with apple cider vinegar, which dramatically improved how she felt within two weeks. (15:18) Rather than keeping this discovery to herself, she began making the drink taste better and sharing it with neighbors who also experienced health benefits. The key insight is recognizing when your personal solution to a problem could help others. This validates market demand organically - if multiple people are knocking on your door asking for your homemade remedy, you likely have a viable product concept.
Embrace Complete Rebranding When Necessary
When Shark Tank investor Rohan Oza told them their branding was "shit," Allison and Steven didn't get defensive. (46:59) Instead, they embraced a complete nine-month rebranding process that transformed Mother Beverage into Poppy. This included changing from glass bottles to colorful cans and repositioning from an "apple cider vinegar drink" to a "prebiotic soda." The lesson is that successful entrepreneurs must be willing to dramatically pivot their brand identity when expert feedback suggests it's necessary for growth, even if it means risking existing retail relationships.
Create New Product Categories Through Bold Positioning
Poppy succeeded by calling itself a "soda" when the word was considered taboo in health circles. (63:03) They created the "modern soda" category in grocery stores that didn't exist five years ago. Instead of competing in crowded spaces like sparkling water or enhanced water, they carved out their own category. The strategic insight is that sometimes the best competitive advantage comes from creating an entirely new category rather than trying to compete in existing ones, even if it initially seems risky or counterintuitive.
Leverage Social Media Platforms Early in Their Lifecycle
Allison recognized TikTok's potential when it was still primarily a creator platform with no brand presence. (59:06) Her authentic storytelling video about starting the company in her kitchen generated $100,000 in Amazon sales overnight. (60:24) She called TikTok "the next wild, wild west" and spent nights and weekends creating content when others were skeptical. The lesson is to experiment with emerging platforms before they become saturated with competitors, and focus on authentic storytelling rather than polished advertising.
Maintain Focus During Partnership and Marriage
Working as married co-founders required setting clear priorities and managing expectations. (69:48) Allison and Steven realized they had to choose between focusing on "marriage, kids, or the business" and decided their marriage was solid, so they could focus on kids and business without traditional relationship expectations like Valentine's gifts. This reduced pressure and allowed them to show up authentically for each other. The insight is that entrepreneurial couples need to explicitly discuss and align on priorities rather than assuming traditional relationship norms will work alongside business demands.
Statistics & Facts
- Poppy went from $500,000 in revenue over 12-18 months during the Mother Beverage days to $100 million in sales by 2023, then $500 million the following year. (41:13)
- After their Shark Tank update episode aired in April 2020, they hit number one on Amazon's hot new product list and were doing $250,000 per month in Amazon sales within a few months. (57:59)
- The Pepsi acquisition will allow Poppy to expand from 50,000 retail locations to 350,000 locations due to Pepsi's massive distribution network. (66:17)
