– 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.) 
Allison Ellsworth founded Poppi in 2020 and is now an advisor to the company.Courtesy of PoppiIt’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 Austinellie.austin@fortune.comThe Most Powerful Women Daily newsletter is Fortune’
s daily briefing for and about the women leading the business world. Today’s edition was curated by Nina Ajemian. Subscribe here.
