– Soda success. Ten years ago, Allison Ellsworth started mixing fruit, apple cider vinegar and soda water in her kitchen with the goal of making a “healthy” soda that was low in sugar and high in fiber. Last month, PepsiCo closed the acquisition of Ellsworth’s beverage company, now known as Poppi, for $1.95 billion (this figure includes an estimated $300 million of cash tax benefits).
“From day one, we knew that this [selling the company] was always something we wanted to do,” says Ellsworth, who cofounded Poppi with her husband, Stephen, and will remain with the brand as a creative advisor. It was PepsiCo who made the first approach, and the big draw from Poppi’s perspective—in addition to the dollar signs, of course—was the impact an acquisition would have on its distribution system, she adds. In 2024, Poppi, which brands itself as “prebiotic soda,” had annual revenue of more than $500 million, according to the company, and was sold in over 120 different retailers, including Whole Foods, Target, and CVS. It is currently only available in the U.S., Canada and Mexico. “There were places we couldn’t get in before, like sports arenas and certain fast casual restaurants,” Austin-based Ellsworth explains. “Now we have a Ferrari underneath us for distribution.” (The “functional” beverages market, meaning drinks that claim to offer health benefits beyond hydration, was worth around $175.5 billion in 2022 and is expected to soar to $339.6 billion by 2030.)
It’s a remarkable trajectory for a company that only officially launched in 2020, and one facilitated in part by Ellsworth’s determination that Poppi be “a community” at the intersection of wellness and influencer culture, rather than a straightforward drinks brand. “We are not just a soda,” she says. Cans of Poppi come in 16 flavors and are known for their bold, neon branding and celebrity fans (Olivia Munn, Post Malone, Alix Earle, and Nicole Scherzinger are all investors). Ellsworth, who in 2018 appeared on Shark Tank while nine months pregnant, resulting in a $400,000 investment from Rohan Oza, is the face of the brand. She frequently communicates with its approximately 1.2 million followers across Instagram and TikTok, announcing new initiatives and addressing controversy when it arises. Notably, Poppi has recently settled a class action lawsuit for $8.9 million, following allegations from a consumer that the company’s marketing promises around gut health are misleading. One can contains 3 grams of fiber and 5 grams of sugar, according to the company. The lawsuit contends that the drinks would need more prebiotic fiber and less sugar to positively impact digestion. “It’s something that big brands go through,” says Ellsworth of the lawsuit. “It feels good that it’s behind us.” The company’s official statement on the settlement adds that Poppi “acknowledges no fault, liability or wrongdoing.”
Ellsworth compares handing over the reins of her company to watching a child go off to college. “You’re happy but you have anxiety,” she says. “You want to see it flourish, but you want to hold on. But I have a calmness. We did good. Poppi is in good hands.”
Ellie Austin
ellie.austin@fortune.com
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ALSO IN THE HEADLINES
- 23andMine. After outbidding Regeneron Pharmaceuticals, 23andMe cofounder and former CEO Anne Wojcicki will buy back the genetic testing company for $305 million, through her nonprofit TTAM Research Institute. Wojcicki stepped down as CEO after 23andMe filed for bankruptcy earlier this year—she has been fighting to regain control ever since. CNBC
- Client complaints. Gloria Allred’s law firm is being investigated by the State Bar of California for its treatment of clients, some of whom alleged that the firm pressured them into signing settlements. Allred called the accusations “unjustified,” saying, “We are proud to defend our record of protecting, asserting, and vindicating the rights of women and minorities.” Wall Street Journal
- Behind-the-scenes. Writer E. Jean Carroll’s new book publishes tomorrow: Not My Type: One Woman vs. a President details her sexual abuse and defamation lawsuits against President Donald Trump, who had to pay her $83.3 million for the second suit. Plus, Trump’s attempt to appeal the first trial’s $5 million judgement was rejected on Friday. The Cut
- New and improved. AMD is ready to take on Nvidia—CEO Lisu Su said AMD’s newest AI processors are faster than the competition and 35 times faster than its previous models. Su now also thinks the AI chip market will top her previous prediction of $500 billion by 2028. Bloomberg
MOVERS AND SHAKERS
Opterra Energy Services, previously Engie Services U.S., named Courtney Jenkins CEO, following its acquisition by LS Power. She was previously president, Engie Services U.S. at Engie North America.
Peloton named Megan Imbres CMO, succeeding Lauren Weinberg. Previously, Imbres was managing director of Apple’s Marcom LA.
SquareX, which provides browser protection solutions, named Mary Yang CMO. She was most recently interim CMO at Absolute Security.
Genesis Therapeutics, an AI-powered biotech, named Aleksandra Faust chief AI officer. Most recently, she served as director of research at Google DeepMind.
PMI U.S., which provides smoke-free alternatives to cigarettes, appointed Jody Sunna as U.S. chief communications officer. Most recently, she was PMI’s VP of global corporate communications.
Advertising agency Archer named Marissa McGarrah Coleman chief strategy officer. She was most recently strategy director and market partner at Clear M&C Saatchi.
ON MY RADAR
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PARTING WORDS
“Find your community. Whether that community is online and thousands of miles away from you or two towns over or in someone who really lifts you up beyond a way you could do for yourself.”
— Singer and actor Reneé Rapp on the importance of community for queer people right now
