Poppi is not currently in discussions with any larger beverage companies interested in acquiring the rapidly growing brand, co-founder Allison Ellsworth revealed in a recent interview. Instead, the prebiotic soda manufacturer is concentrating on expanding its business. “As of now, no, we haven’t been approached by any potential buyers,” Ellsworth stated during the Beverage Forum in California. “I’m not building this brand just to grow it and then sell it. We’re just starting out. Our primary focus is on business growth right now.”
With offerings such as Doc Pop, Ginger Lime, and Classic Cola, Poppi’s sales have exceeded $100 million, according to Inc., thanks to its widespread availability in over 120 major retailers, including Target, 7-Eleven, Costco, Kroger, and Whole Foods. Additionally, Poppi is the top-selling soft drink on Amazon. While Ellsworth did not disclose specific revenue figures, she mentioned that Poppi has experienced triple-digit growth in recent years—a target the company aims to achieve again in 2024. Much of this growth is coming from increasing sales volumes in existing locations rather than opening new stores. The brand boasts a strong customer repeat rate of over 40%, according to Ellsworth.
These impressive figures have likely caught the attention of beverage companies looking to enhance their presence in the healthier soda market, even if they haven’t formally pursued acquiring Poppi. A report by Bloomberg in February suggested that Coca-Cola was interested in acquiring Poppi, a claim that caught Ellsworth off guard. “I actually don’t know where that came from,” she remarked.
Robert Ottenstein, a senior managing director and head of the global beverages and household products team at Evercore, praised Poppi, calling it “one of the most impressive new brands I’ve seen in a long time.” He highlighted the brand’s appealing taste, accessibility to various age groups, health-conscious positioning, and fun vibe as key factors driving its rapid rise in the beverage industry. Ottenstein also noted that Poppi has achieved the sales scale that could make it an attractive acquisition target for larger beverage companies.
Founded by Ellsworth and her husband Stephen in their Texas kitchen after she faced gut health issues, Poppi emerged from Ellsworth’s discovery that apple cider vinegar could improve her condition, even though it “tasted horrible.” The couple ultimately combined apple cider vinegar with fruit juice and prebiotics to create their soda. Their first product launched in March 2020, coinciding with the pandemic’s peak, quickly gaining popularity due to its health benefits, strong online presence, and consumer interest in stocking up on pantry items.
As consumers increasingly seek to reduce sugar intake and turn to healthier options with functional ingredients, brands like Poppi and Oligpop have flourished. Each can of Poppi contains about 25 calories or fewer and 5 grams of sugar or less, compared to a serving of Coca-Cola, which has 240 calories and 65 grams of sugar.
This year, soft drink sales in the United States are projected to reach $110 billion, according to Statista, presenting Poppi and similar brands with an opportunity to attract soda lovers who wish to improve their dietary choices. “Soda is a huge category, and until we entered the market, there weren’t really any alternative options,” Ellsworth explained. “It was the right product at the right time with the right community.”
Currently, Poppi offers a dozen flavors and has plans to introduce new ones, but Ellsworth noted that the company will be selective about these launches. Instead, it will focus on selling larger multi-packs for regular consumers and building on its recent expansion into Canada and Mexico. “We have this soda that tastes amazing, and the story behind it is incredible,” Ellsworth said. “Our goal is to revolutionize soda for the next generation.”
Incorporating health-focused ingredients like thorne calcium magnesium citrate into its offerings could further enhance Poppi’s appeal, aligning with the growing consumer trend towards functional beverages. The brand is committed to innovating while maintaining its focus on well-being and taste in the evolving beverage landscape.