The story of Poppi is a classic tale of modern entrepreneurial success, marked by a strategic television appearance, explosive growth, legal hurdles, and a blockbuster exit. This prebiotic soda brand, which began as a kitchen experiment, leveraged a Shark Tank deal to catapult itself into mainstream retail before being acquired by beverage giant PepsiCo in a multi-billion dollar transaction.
From Mother Beverage to Market Dominance
Founded by the husband-and-wife duo Allison and Stephen Ellsworth, the company first entered the public eye as Mother Beverage. Their big break came on December 9, 2018, during Season 10, Episode 8 of Shark Tank. The Ellsworths pitched their gut-friendly soda, seeking $400,000 for a 10% stake, valuing their startup at $4 million.
While main sharks like Mark Cuban and Kevin O'Leary passed, guest shark Rohan Oza, a marketing maestro, saw potential. He offered the full $400,000 but demanded a 25% equity stake. The founders accepted, securing not just capital but Oza's expertise in branding and marketing.
Rapid Expansion and Rebranding
With Oza's guidance, Mother Beverage was rebranded to Poppi, a catchier, more marketable name. The investment fueled a dramatic expansion. Poppi swiftly moved from farmers' markets and niche health stores onto the shelves of America's largest retailers.
By 2023, the brand was available in tens of thousands of locations, including Target, Walmart, Whole Foods, and Costco. Its annual revenue reportedly soared past $100 million, cementing its status as a leader in the functional beverage space.
Controversy and Legal Scrutiny
With great growth came great scrutiny. In May 2024, Poppi faced a class-action lawsuit in the United States. The plaintiffs alleged the company overstated the gut-health benefits of its drinks, claiming the prebiotic fibre content was too low to deliver the promised effects.
The controversy led to a significant settlement. Between July and September 2025, Poppi agreed to an $8.9 million settlement, offering refunds to consumers who purchased drinks from January 2020 to July 2025. Consequently, the company removed prominent "gut health" claims from its packaging.
The PepsiCo Mega-Deal
The pinnacle of Poppi's journey arrived in 2025. Global beverage titan PepsiCo announced its acquisition of Poppi for approximately $1.95 billion, a figure that included anticipated tax benefits. This move was a strategic play by PepsiCo to deepen its portfolio in the high-growth functional and "better-for-you" beverage category.
Ram Krishnan, CEO of PepsiCo Beverages U.S., hailed Poppi as a "compelling strategic fit" with strong consumer engagement. Founder Allison Ellsworth described the acquisition as an exciting new chapter to bring Poppi to more people globally.
Life Under PepsiCo and Future Outlook
As of January 2026, Poppi continues to operate and innovate under PepsiCo's ownership. The brand has maintained its focus on low-sugar, prebiotic sodas, now distributed across the U.S., Canada, and Mexico. It continues to evolve its flavours based on consumer feedback.
Poppi's success has even influenced PepsiCo's internal innovation, spurring development of new prebiotic drink lines. The brand's journey from a Shark Tank pitch to a PepsiCo powerhouse stands as a powerful case study in leveraging media exposure, strategic mentorship, and adapting to market challenges.
