How I Built This with Guy Raz - Poppi: Allison and Stephen Ellsworth. From Farmers Market Vinegar Drink to $2B Soda Sensation

Episode Date: September 22, 2025

A decade ago, Allison Ellsworth was drinking apple cider vinegar for health reasons and doctoring it with fruit so she could stand the taste. Her husband Stephen helped her turn it into a&nbs...p;business by adding carbonation on a hacked soda line in their Dallas townhouse. They called it “Mother Beverage,” and sold out every week at the farmers market…but then heard the words no founder forgets: “Your branding is…sh*t.” What happens next is one of the wildest CPG glow-ups of the 2010s: a Shark Tank deal with brand whisperer Rohan Oza, a full rebrand to Poppi, colored cans that jumped off the shelf, a launch derailed by Covid—and finally, an explosion fueled by Amazon, TikTok, and a Super Bowl moment that planted the flag: We’re soda–and we’ve left the farmers market for good.  Five years after its rebrand,  Poppi was acquired by Pepsi for nearly $2B. This is the story of the messy bottling line, saying no to “dumb money,” baptism by Shark Tank, and building a generational brand while staying married.In this episode, you’ll learn:How rebranding can rescue a beverage, and when to avoid early eye-rolls The hit-and-miss of carbonating on a small scale (and why co-packers said no).How the risky decision to call Poppi “soda” unlocked a new retail set (functional soda).What a Shark Tank partner does during a rebrand window.How Allison seized on TikTok to spike sales during Covid Timestamps:0:10:15 Meeting cute at a snowboard shop → engagement in 7 months 0:14:00 How apple cider vinegar helped Allison’s health…but tasted terrible (early flavor hacks) 0:22:36 DIY carbonation disasters: exploding bottles & the 40°F lesson 0:37:48 Appearing on Shark Tank while nine months pregnant and the deal with Rohan: “your branding is sh*t.”0:42:28 Selling out at the Dallas Farmers Market 0:47:02 The nail-biting rebrand from “Mother” to Poppi: colored cans vs. white, and winning the shelf 0:55:43 Expo West canceled by Covid → a massive turnaround fueled by Amazon, Shark Tank, and TikTok1:07:51 Super Bowl ad– “We’re soda!”--and the road to a ~$2B Pepsi acquisition 1:09:58 Growing a business while managing a marriage Follow How I Built This:Instagram → @howibuiltthisX → @HowIBuiltThisFacebook → How I Built ThisFollow Guy Raz:Instagram → @guy.razX → @guyrazSubstack → guyraz.substack.comWebsite → guyraz.comThis episode was produced by Rommel Wood with music composed by Ramtin Arablouei. It was edited by Neva Grant with research help from Alex Cheng. Our engineers were Patrick Murray and Jimmy Keeley.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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Starting point is 00:01:44 made it feel less like a visit and more like we were actually living there. Plus, taking a trip is the perfect time to host your space on Airbnb. Your place with all of its personal touches and its amazing location could make someone else's vacation even better. Your home might be worth more than you think. Find out how much at Airbnb.ca.combe.combe. Expo West is a really big event in CPG, especially in better for you. Yeah, it's a big convention, Anaheim. And we were using this tent pole event as being our life. launch. So we had spent a lot of our money on, I think, like, almost $90,000 on building a booth.
Starting point is 00:02:42 You know, you have to pay for the space. You have to get product out there. It was like our big bet. And we ship out to launch Poppy March 3rd, 2020, the first week of COVID. And then a day into it, they canceled the entire thing. And at that moment, it was just so devastating for us because we're like, oh, goodness, this was our moment. Where do we go from here? Welcome to How I Built This, a show about innovators, entrepreneurs, idealists, and the stories behind the movements they built. I'm Guy Raz, and on the show today, how a mom-and-pop beverage made with apple cider vinegar got remade as poppy, a soda sensation that sold to Pepsi for nearly $2 billion.
Starting point is 00:03:35 Okay, I'm going to tell you about something I do every morning, and I'm going to qualify this by telling you that I have zero standard. or expertise or academic training to give any advice on what to put into your body. All I know is what works for me, whether it's real or imagined or just witchcraft, it works. So every morning, after I get a little morning sunlight, thank you, Andrew Huberman, I pour water into a tall glass and drop a tablespoon of apple cider vinegar into the water. And then I drink it. It's supposed to be really good for regulating blood sugar.
Starting point is 00:04:18 and all I know is that I think it makes me feel pretty great, but that's just me. For a lot of people, the taste of diluted apple cider vinegar is a non-starter, which brings us to today's story. Because about 10 years ago, Allison Ellsworth was doing a version of what I do as well. In her case, it seemed to help with digestion and chronic stomach issues. The problem, though, least for Allison, was the taste. So she started to add fruit juices to her vinegar and water mix and eventually started to share her concoction with friends. And soon, Allison's husband Stephen joined to help out as well. Now, you probably know what happened next because as these things go, enough people liked what Allison was making that it occurred to her she might have a product and a business.
Starting point is 00:05:09 So Allison applied to a local farmer's market in Dallas and started bottling her home brew vinegar drink. and called it mother beverage. Doesn't quite slip off the tongue, but it was a start. One day, Allison and Stephen found out that Shark Tank was coming to Dallas, looking for prospective guests. Now, I'm not going to unravel this whole story here because you are about to hear it, but this is the story of how a farmer's market vinegar drink became poppy, a prebiotic soda that eventually sold to Pepsi for nearly $2 billion. dollars. Think about that. In less than 10 years, the brand went from a mom and pop curiosity at a
Starting point is 00:05:51 Texas farmers market to a $2 billion sensation. As for Stephen and Allison, they didn't start their careers in the beverage industry or even in the health and wellness space. They both grew up in the 80s and 90s, Allison in Texas, Stephen in Wisconsin. After attending the University of Utah, Stephen worked briefly in the corporate world, including a stint at Wells Fargo, but he didn't like it all that much. Yeah, that's right. I'd like to say that I was unemployable in the corporate world. I've always had the ability to earn money from a young age. I got a paper route when I was 11, and that's very autonomous, mowing lawn, shoveling driveways. And I never had to go work for someone to get that. I just had a really difficult time. taking direction when I just had such a clear idea of what I wanted to do and the way in which I wanted to do it was oftentimes better than what my boss was recommending.
Starting point is 00:06:51 And Allison, when you graduated, you, I think, pretty much right out out of college went to go work in the oil and gas industry. If I'm not mistaken, tell me what you did. Well, when I graduated college in 2009, I didn't want to go, like Stephen was saying, go work for the man or some corporate job making $30,000 a year. So I was like, okay, my dad has these resources. I can go work in oil and gas. And so he did work in oil and gas. And you start off at a really young age making like $500 a day, right? It is really good money.
Starting point is 00:07:28 You're working seven days a week. You're working from dawn to dusk, though. it's really, really not the easiest job, but for me, the hustle was there and I love just making money. Honestly, I think that's a big driver of that self-starting mentality that just kind of was instilled in for me from a really young age. I love that you say that because, you know, a lot of people are uncomfortable saying that, right? Because I think there's a perception that's saying money was important to me. It sounds like it's greedy, but actually I'm assuming that from your perspective is freedom. Like you didn't grow up with anything.
Starting point is 00:08:04 Yeah. I didn't grow up with a lot of money. Even though my dad had money, I love him to death. But we didn't really reconnect until after college. And so I never knew I didn't have money, but I knew I didn't have as much as everyone else, if that makes sense. So for me, it was really big piece was the freedom. And working in the industry, it wasn't like you were working on drilling rigs or, right? Like you were, tell me what you were actually doing.
Starting point is 00:08:30 Yeah. So it's kind of similar to what people call it as like a landman, obviously as a landwoman. But I would go into courthouses in these small towns of about 3,000 people. And I would research basically ancestries of where the government or the United States or the state gave land to that settler back in the 1800s. And then I would track that forward. And I would just see who owns those minerals. And then you would go and track those people down. You would negotiate with them on whether.
Starting point is 00:09:01 or not we could drill for oil on your land or do research. We did a lot of surface research in seismic activity and water research. So it's very self-starter. No one is actually there with you. So I'd be in this town in the middle of nowhere by myself. And you have to be very on top of it and hit your deadlines. So you're doing this work. And Stephen, you don't last that long in the corporate world. But you're in Utah and you, and I guess you would eventually go work at a ski and snowboard shop. Yeah, so I guess it was a sabbatical from the corporate world. When I went to school, I was a good student. I tried to rearrange my schedule so that I could ski as much as possible, snowboard as much as possible. And so I went and was a, you know, a buyer and a manager at this
Starting point is 00:09:50 snowboard shop. And so got to test out all of the latest gear, got to buy the gear for the and ultimately got to do what I was super passionate about. So this store that you would go eventually work for, this was in Salt Lake City? It was. It was in Salt Lake City at the Gateway Mall. And one of the projects when I was working was in Utah, and I happened to be at the mall walking in to that snowboard shop, and that's where me and Stephen met. What were you doing there? I actually do enjoy snowboarding as well, not as hardcore, Stephen.
Starting point is 00:10:25 And I went in to buy a backpack. I think I was looking at some bindings. And he was one that helped me. And I didn't know a single soul. I was living two hours outside the city in a teeny town called E from Utah. And he said to me, do you, can I get your number? I would love to take you to ice cream. Wow, that's that.
Starting point is 00:10:44 Let's just pause for a sec. Because Stephen, was that something that you would normally do? Like, just ask a customer out? No. So that was, honestly, it was the first time. And I was actually pretty intentional about not doing that because I felt it sort of broke the professional barrier. But I just couldn't pass up the opportunity when I saw Allison come in. What? Why?
Starting point is 00:11:07 I mean, she was looking for a backpack. And what, I mean, it could have just been an ordinary transaction. And we would never even be having this conversation. Like, she would go in. And I didn't even buy the backpack. Yeah. I'm a terrible salesperson. Honestly, when he gave me his.
Starting point is 00:11:23 number and said, do you want to go to ice cream? I thought to myself, obviously, he's probably Mormon. And I grew up seventh the Adventist, which is also kind of a stricter religion. And so it's, you know, similar, no drinking and, you know, worshiping. Very healthy lifestyle also, right? Yeah. And no, it was, it was great because I think we had a lot of those similar values, right? So that first, so when he first asked you to go for ice cream, that was not, you weren't like, oh, yeah, You were thinking, okay, he's clearly a member of the church because he's not asking me for coffee or for a beer. Yeah, that's right. I'm from a big happy Mormon family, and I don't say that cheekily.
Starting point is 00:12:05 Right. You know, you get religion such a huge piece of dating, and the second we hung out, I realized that he was very different, and it wasn't such a big thing. Like it just moved really quick. And then we got engaged seven months into it and just, I don't know, you just like when you know, you know. Yeah, for sure. All right. So you guys get married in 2014. And I guess, Stephen, you wind up quitting your job at the snowboard shop and going on the road to work with Allison doing similar work like oil and gas work, right?
Starting point is 00:12:42 Correct. And so where were you guys actually living at this point? We ended up moving into a teeny motor home for a few months. And we moved to Wyoming. We're working on all of these different things. And honestly, this is why I started Poppy because on that road I kind of fell ill. All right. Let's back up a little bit.
Starting point is 00:13:03 You'd be feeling ill like stomach issues, digestion. Like what were your symptoms? Yeah, I just look back at pictures and my whole body was inflamed. So red puffiness, my skin, horrible acne, horrible tummy, horrible tummy problems. I was allergic to all perfumes, all makeup, shampoos, my eyes would swell shut. Horrible. You're traveling. You don't have access to be able to work out consistently.
Starting point is 00:13:31 You're not sleeping consistently. And then you don't have access to good food. And I think that was a huge piece of why I didn't feel good. And going to doctors that just kept riding me off saying, you're fine. Like, women problems, right? Yeah. All right. So you guys are working.
Starting point is 00:13:48 And, Alison, meantime, you're dealing with just this frustration about not feeling well. And I guess at a certain point, maybe you found something online. You started to experiment with apple cider vinegar, like to take, I guess, to dilute it in water and see if that would make you feel better. Yeah, I ended up doing a full elimination diet where I cut out sugar, dairy, gluten, all the things. and then I slowly started introducing those foods back into my diet. And the consistent thing when you're doing that to help with the cleansing, what they call process, was drinking apple cider vinegar every day. And so going through that process, it was just life-changing.
Starting point is 00:14:32 Before I gave up all the food, within two weeks as just having the apple cider vinegar, I felt 50% better. And I just discovered that food can really affect the way that you feel. And the only problem with the apple cider vinegar is, It's just a really harsh taste. And so I was putting it in this big, huge thing of water, adding lemon and cayenne pepper to it and just like almost choking it down daily knowing I had to do it. I wasn't like looking forward to it.
Starting point is 00:15:00 And I just like was like, I got to make this taste better. There just has to be a better way. Yeah. I mean, I guess we should pause and talk about apple cider vinegar for a moment because I take it every day. And I take a shot of it and dilute it in like eight to 12 ounces of water. You're not supposed to drink it straight. It's not actually, it's not good for your throat. But there's a lot of research that shows that it does have an impact on insulin sensitivity, which lowers blood sugar.
Starting point is 00:15:30 It's a really great. And people, right, there's people have been using it for a long time. Yeah. And at the time, I had no idea about any of the research or anything behind it, other than maybe my grandma told me to take a shot when I was sick, right? Yeah. And growing up and I just knew. I just felt different. But I was also trying to get Stephen to drink it.
Starting point is 00:15:50 I was like, you have to try this. And he's like, you're crazy. I'm not drinking that. And I was like, okay, I'm going to make it taste better. Like goal, I will make you try this somehow, some way. But in creating it, I didn't want to take away from those health properties where I could have just added orange juice or a ton of sugar or a lot of other things. So for me, it was really important to try to keep the sugar really low. And the ingredients, basically ingredients that you can love and pronounce.
Starting point is 00:16:15 and just the ingredients people could know. All right. So you are, this is having an impact. And like any time people find something that starts to really help them, they get really passionate about it. Because I've been in this position too. And I'm sure you're just like talking up apple cider vinegar to anybody who would listen. But to some people, they might be like, oh, that's weird. That sounds weird.
Starting point is 00:16:36 You're doing what? Everyone thought it was weird. I remember I had one neighbor who she was having some health problems as well. And then she started knocking on my door and I was making her mason jars of it weekly. It was this thing. I was like, wait, this is interesting. Other people are interested in it. And then soon after that, we went home for Thanksgiving to Texas and my sister and brother-in-law and my family.
Starting point is 00:16:58 Like, everyone's there. And I bring it with me. And I just think everyone's going to be just as excited as me. And I set it up as like a tasting in the sunroom. And the only person that shows up to try it is my brother-in-law. Nobody else would even try it. They're like apple cider vinegar, like, no, thank you. I want nothing to do with it.
Starting point is 00:17:17 And they all called me crazy. And all right. And as you're doing this, like, what are some of the other things that you're doing to make it more palatable? Like, I actually love the taste of apples. I buy like, I buy those giant bottles at Costco. You get like three or four, you know. Yeah. But it sounds like you did not love the taste of it in water that you were trying to mask it somehow.
Starting point is 00:17:37 I was trying to mask it. And, you know, you're a rarity. Not a lot of people like it, right? Like, you're a little crazy. No. With the process. And I'll be honest, I remember trying to all sorts of things. I remember, like it was yesterday, simmering raspberries to make purees.
Starting point is 00:17:56 I tried essential oils. But really what we landed on in those early days was I used to infuse the vinegar. So I would get, like, real raspberries, real rose petals. And I would put the vinegar in it. And I'd put it on the table. And it would infuse. So it would take on the flavor of that. those and then I would literally use sparkling water or soda stream. And then the main sweetener at the
Starting point is 00:18:17 time, Stevia. And some of the first flavors that I made, honestly, one of them we still off today, which is raspberry rose. I remember doing an orange cinnamon with like real cinnamon sticks, lavender lemons, right? So really just flavors that I thought would go really well together. And some worked and some didn't. All right. You're making this. This is like 2015-ish. Tell me, how, what even making it for yourself is one thing, but deciding to
Starting point is 00:18:49 pursue this as a business is another thing. And oftentimes you need outside validation. You need people who are telling you, hey, you have something here. So was that happening? Who was saying that?
Starting point is 00:19:01 Yeah, so I remember going through this. I was really passionate about it. At the same time, I was feeling better, right? I talked about just the way I personally felt And both Stephen and I lived to each other. We'd be married for a little bit. We're like, maybe we want to start having a family.
Starting point is 00:19:18 And so I remember sitting at the table one night. It was me and my dad and Stephen. And we were just like, what are we going to do next? Like if we want to start a family and we don't want to be on the road, maybe Stephen could stay on the road while I'm home, but nobody wants to live that life either. And my dad goes, why don't you sell your hooch? And I remember I'm calling it hooch.
Starting point is 00:19:35 And it kind of hit us like, wait, could this be a business? It was still a hobby at that point. So we got up and we bought a place. We moved to Dallas. We moved in December and I got pregnant right away in January. It was a lot quicker. But I think like it was really interesting as you sort of talk about fate and some of these things that really align. Thankfully, we had a long project that we had been working in Wyoming.
Starting point is 00:20:02 And the project was sort of winding down. And so Allison was gung-ho. We finished the project. She didn't go back to work. She started doing this. I found a local job in Dallas to pay the bills. And so this is what I would do during the day. And then at nights and on the weekends, Allison and I would work together.
Starting point is 00:20:22 We just started buying equipment. We started maxing the credit cards out pretty early and just kind of putting our life savings into what we just wanted to do. So I remember our guest room, right? I'm like three months pregnant at this point. Our guest room on the bottom floor had like four vats of vinegar that were, what, 50 to 100? gallons. So our entire house smells like vinegar. We have upstairs on our main floor. We have a table that we've basically makeshifted this bottling unit together. I mean, I remember like when we first started doing it, it was exploding on the roof of our brand new house. It was this whole thing.
Starting point is 00:21:00 And we would literally measure the vinegar with just like these, I don't know, what do you call? A syringe. And we would put it into them each one and we'd measure the exact amount and then we'd fill it with water and then we'd cap it. Fill what? A bottle? Yeah, just bottles at that time. We had no labels. We were working through like, what is the name? What do we call it? What do we want to say? What are our values? So I just want to understand this. First of all, how did you even learn how to do that? I mean, because this, right, there's like a science to it and the pH levels and obviously you trial and error with the exploding bottles. But how did you know what to buy and how to make it? Was it just purely like Google research? So that's, I'm kind of a science nerd and my brain is is really linear. And so. I dug into the science of it. And so I had an understanding of what a little bit about fermentation.
Starting point is 00:21:58 I was really into kombucha, even in college. I think I started drinking kombucha like in 2006. We would brew beer in college. And so I had an idea of like fermentation and, you know, sugars and yeast and these other things is what ultimately caused fermentation. And so it was honestly trial and error. We had really rudimentary understanding and we just gave it a whirl. Well, you would buy, and these are what?
Starting point is 00:22:23 like 12-ounce bottles, like glass bottles? So a really funny story is we were filling these one by one. The equipment we had was essentially like what the inside of like a soda fountain looks like. You've got this little machine that takes in water. It's got to be at a, you know, a temperature that took a little bit to find out. It has to be around 40 degrees in order for like the carbonation or the CO2 to really sort of dissolve within the water solution. And it would shoot out as carbonated water. so think about a more efficient soda stream.
Starting point is 00:22:54 And so we were doing this. And I remember, Allison, we got these bottles. They were square. They were really, they looked great. They were amazing. And we put it in there and we sealed it. And, you know, maybe the next day, we were taking some photos of it with some fresh fruit around it and start bringing the brand to life. And probably like 10 minutes in, the bottle just blew up.
Starting point is 00:23:16 And we're like, from the pressure of the carbonation? Carbination. Yeah, exactly. And so that's what led us to discover that not all. class bottles. No. Can handle carbonation. Can handle carbonation. And so, so we, we ended up just getting a standard sort of 12 ounce soda bottle. So how much initially in that, the first sort of six months of 2016, would you estimate you invested in equipment? Like, was it that expensive? Was it really expensive or was it relatively cheap? I think it was, it was relatively cheap.
Starting point is 00:23:47 Looking back, and I think the palette of bottles was probably the most expensive thing that we bought. but the equipment that we had purchased was maybe a couple thousand dollars yeah i want to i mean how did you i mean at that point you need some money did you go around asking people to invest in your business yeah so i went to my sister who's always been a really big believer in me and she ended up giving us thirty thousand dollars my dad gave us thirty thousand dollars and then we put $30,000 in of our own money. So basically a total of $90,000, which was everything we had. Yeah. All right. So tell me about the name that you came up with and even the sort of the look of it. Because you called a mother beverage, right? So that was the first thing. Tell me about that name.
Starting point is 00:24:39 Yeah. So we named it mother beverage after the mother of vinegar. So there's just like floaty stuff in the bottom of vinegar. kombucha has something similar called the scobie, but in vinegar, it's called the mother of vinegar. A lot of people are like, oh, it's because you're a mother yourself. No, not really, but we do love calling it mother beverage at the time. All right. So you, by the summer of 2016, you are ready, or I guess maybe even earlier than that, you're ready to kind of debut this at a farmer's market in Dallas. And tell me, Alison, what was the plan? I mean, you would just set up a table and put them there.
Starting point is 00:25:18 was the what was what was what were you selling people what were you what was the promise that you were making that it was going to make them feel better like it made you feel better yeah i think a little bit of that but the beauty of apple cider vinegar is almost everybody's heard of it there's not a lot of education around that as an ingredient so people see it they've either tried it someone's told them they need to drink it or they've drank it for years and they do it every single day like you So they like immediately got why we were doing it. And so I didn't really have to sell like my story. It just was an easier way to consume apple cider vinegar and people just related to it and got it right away. Yeah. And you keep on talking about this plan. There wasn't really a plan. It was just it was just one foot in front of the other. And this is also at the time where kombucha is on the rise. And so as we think about sort of marketing or positioning ourselves adjacent to kombucha, it was a beverage.
Starting point is 00:26:18 or a product that had similar attributes to kombucha, but with less sugar. Right. Like a sort of a soury taste that people were already kind of used to. And so when you, when you put, like, you set up a table at the farmer's market in Dallas, I mean, who was buying it? Who, who, I mean, was it just curious people who were like, I'll try this and or what? Like, who were they? The farmer's market is a place of discovery that people are more willing to just try things. that they typically wouldn't do. I think the people going there are seeking those type of products. So some people actually did not get it. And they thought we were crazy and they didn't buy. And then we get the people immediately got it. And I will say we were selling out. Like every week we would make it, we would sell out. The next week we'd make, you know, that and a half,
Starting point is 00:27:11 we would sell out. So we were like, okay, something's working. And how much was a bottle? It was pretty expensive. It was $4. $4 a bottle. $3.99. $3.99 a bottle. I mean, how quickly, because a farmer's market was once a week, right, I'm assuming? Every Saturday. All right. Tell me the story. A Whole Foods buyer, Whole Foods based out of Austin initially, start in Austin, of course. And a buyer comes to the farmer's market. Kelly Landrieu. What does she say to you? Does she say, I mean, was it at that moment where she says, would you guys be interested in coming to Whole Foods? Yeah, and it's not as simple as that, right? She gave us her card and said, there's nothing like this in Whole Foods. You guys have to be in Whole Foods. But we didn't have good labels. We didn't really have nutritionals and done the testing to where you have to be at the level to be in a grocery store. One, you can't make it in your house to be in a grocery store. So we thought, oh my gosh, we got this card. We made it. Little did we know. We weren't even on shelf till 10 months later. Yeah. And she was she was offering you, what, one Whole Foods or? two whole foods or what? No.
Starting point is 00:28:17 We thought it was national whole foods. She was offering you a few whole food stores. We didn't even get into the planogram. So we, from the moment we got the card from her, we at that point went and got a lease. We opened up our own manufacturing facility thinking we were going to be nationwide whole foods for them to say, no, no, no, no, you don't even have Dallas. We've given you a license to go hunt for it. And what that means is you actually now have to go store to store and sell in your product to every single store at that time.
Starting point is 00:28:47 And it was 14 Whole Foods, Dallas Fort Worth. And so we went all in thinking, oh, my gosh, we've made it. We're going to get all this. Little did we know we didn't get anything. We still had a lot of work to do. While we come back in just a moment, Allison and Stephen are told that their branding totally sucks. Stay with us. I'm Guy Raz, and you're listening to How I Built This.
Starting point is 00:29:24 Hey, welcome back to how I built this. I'm Guy Raz. So it's around 2016, and a buyer at Whole Foods has encouraged Stephen and Allison to ramp up production of mother beverage. And you'd think that they'd find a bottling plant to partner with. But they don't. They end up renting their own warehouse because no copacker wants to work with them. So there was one big hurdle. We were totally unpasturized. We wanted to have raw, unfiltered apple cider vinegar in our product.
Starting point is 00:29:58 And so there's many reasons why co-manufacturers don't want to do that. There's many reasons why even craft breweries who were smaller and, you know, we're more willing to maybe do something at a smaller scale for us. We're unwilling to do it. You know, raw unfiltered apple cider vinegar, unfiltered, you've got the floaty stuff in there so it can get in their lines. It could potentially contaminate other products of theirs. there's the raw factor, it's got acetobacter in there.
Starting point is 00:30:24 And so that can cause their beers to sour. That can cause other issues in other products, as I mentioned. And so being unpasteurized, being raw and being unfiltered, there just weren't co-manufacturers that were honestly willing to take us on and take that risk. But really, for this first initially run at Whole Foods, maybe even the first year or so, this is all being made by hand, basically. Correct. You were like pouring vinegar into vats and what pouring fruits into the vats.
Starting point is 00:30:57 Tell me about the process of working in the warehouse. It was kind of crazy. I remember like being on the bottling line and it's really difficult to bottle a carbonated drink. It seems like such an easy thing. But if you think about it, you go to the soda fountain. What happens? You pour it in your cup, it bubbles, you know, foams over. It goes everywhere.
Starting point is 00:31:20 We were just like, we were racking our brains. Like, how does this, how does this happen? And it was really interesting. It was probably one of the most frustrating sort of experiences and journeys for me to, like, get the carbonated product into the bottle without it foaming over in a timely manner. Yeah. How, I mean, how were you doing that? It was like, it was like a soda fountain. Like, you go to a burger place and you've got your soda fountain and you just put your cup under it.
Starting point is 00:31:47 Was it a version of that, but with bottles? We got like a forehead filler, right? Like a professional forehead filler where you put all of the glass bottles underneath it. It's supposed to suction it so tight that you fill it and the air doesn't get in. It's supposed to fill. And you had that? We did. We had two of those.
Starting point is 00:32:04 So we could do eight bottles at a time. We had two lines set up. And we would just try to figure out a way to get this. But it would work for like 20 minutes and then not work for three hours. And we would be there for hours just filling product to maybe get, you know, know, a couple hundred bottles out the door. It was, it wasn't scalable. Even, I would say that was the hardest part of the business was the filling, the making it, the mean, you know, the steeping, the quote unquote syrup was the easiest part of it. All right. You're sort of working on this for
Starting point is 00:32:38 many, many months, and now it's time to go into Whole Foods. And did you start with just one Whole Foods in Dallas? So we were able to sell them in to, I think we got into maybe eight, of the stores from the beginning. Correct. But the beauty of getting into Whole Foods opened up a whole other avenue on the distribution side. So you can't just self-distribute to someone like a Whole Foods. So it opened up Unify, which then opened up other accounts. Unify is a distributor.
Starting point is 00:33:11 And they required you to work with a distributor like Unify. Yeah. And it's hard to even get into them. It's like the chicken or the egg. Like get into Unify. If you don't have a retail, if you don't have a retail, you can't get in. So it was kind of nice for us right from the beginning to kind of have Whole Foods that they took us in. But then that opened it up to be able to get into other accounts around the Dallas area.
Starting point is 00:33:31 So we got into the Royal Blues of the World, which is like a Dallas grocery store. We were able to get into some natural groceries and, you know, just local sandwich shops. And so we had a good presence in Dallas, not just the 8 to 14 Whole Foods. And when you were in, okay, so when you started out, Whole Foods, right, you've got a distributor because that's part of the requirement. How did you then get people to be aware of it? Would you go in? I mean, by the way, you're also, the two of you also have a baby, a brand new baby at home. So tell me what you were doing. You were going in and setting up a table and just asking people if they wanted to try this due
Starting point is 00:34:09 product? Anything. Anything, honestly. We were doing Instagram posts, gaining followers. I think we had like 10,000 followers on Instagram. We had a little website. We were selling the product on our website as well, which was really difficult if you think of how do you ship glass bottles that are liquid through the mail. We did that. I mean, it was just like anything and everything, but we didn't do any paid media or have any know-how to do anything like that.
Starting point is 00:34:38 We also had no money. Yeah. How about employees, Stephen? I mean, both of you guys are running this business together. And then, but I have to assume you could physically do everything and load the bottles into the car, into the cases and all this stuff. Like, did you hire temporary people or did you start to hire like full-time people to help? Yeah. So we had, yes, we started to hire folks that would manage the farmer's market stands on the weekend.
Starting point is 00:35:11 And then I hired a crew of maybe six or seven sort of. production members. Most of them were 1099. There was a few W-2 employees, but they would do everything. So they would come in. We would probably work nine to 12-hour shifts, five days a week.
Starting point is 00:35:30 But we weren't paying ourselves. So to keep in mind, quote-unquote, yes, we quit our jobs, but Stephen found a job that he could do at night to pay our mortgage. So he was still working a second job, basically, this whole time. Yeah, it was really,
Starting point is 00:35:46 allowed us to to reinvest everything that we were making at the time. All right. You're, this just sounds like a crazy life, right? Because you are trying to expand the business. You're trying to get people to buy the product for it. How was it doing? I mean, was it a hit at Whole Foods? I mean, hit is a relative term, right?
Starting point is 00:36:07 Because you, you know, it's not like all of a sudden, you know, there's a windfall of cash. But was it successful, more or less at Whole Foods? away? Yeah, I honestly think we had some really great traction, right? It wasn't at this massive scale, but every week, every month, our sales would continue to increase. We would get more notoriety. We'd get better shelf placement in Whole Foods. We would move from the dry shelf to the grab and go coolers at the front, or we would get an N-cap or something like that. And so, you know, we were starting to really see that progress, and people started to notice so much so that there was a, there was a segment called Shaping DFW.
Starting point is 00:36:46 And ABC actually reached out to us. They said, I love what you guys are doing. I really think that you guys are in the forefront. You're helping to really shape this new wave in DFW, Dallas-Fort Worth area, of better for you, sort of health and wellness. This is a local, like a local TV, like news channel. Yeah, it was a seven-minute segment. Honestly, that was a really beautiful piece for us to be able to take
Starting point is 00:37:11 that and say, hey, this is going to be on the networks. Give us more shelf space. Give us more Whole Foods, right? And so I think the category review was coming up. And they had basically accepted us into more of quote-unquote Whole Foods, what would be called like a global rollout where each individual region has to accept you. And I think we ended up getting into seven regions across US. So obviously something was working. And this was like the next step where we're like, okay, we're going to go to nationwide, we need money. And so we kind of were looking at each other. Like, we need to figure out manufacturing. We need money. It was crazy. What kind of sales were you doing in the first year, like over half a million dollars? I wouldn't say it was that much. I think when we,
Starting point is 00:38:00 when we went under Shark Tank, I think it was we had done about a half a million dollars in revenue in the previous, I don't know, 12 to 18 months, something like that. So we were putting together like, you know, a couple hundred thousand dollars. All right. See, the product really launches in 2016. And I want to talk about Shark Tank because this happens. Your episode appears in 2018. I don't know when you filmed it. But tell me about the Shark Tank strategy, because clearly this was a strategy to get attention
Starting point is 00:38:29 and maybe to attract some investment and to kind of supercharge the brand. How did that, was it a conversation that the two of you had that you thought, hey, let's try our hand or Shark Tank? No, we actually had someone approach us who was a fan of the brand, wanted to invest, and he was going to give us around $200,000 and had no resources. He didn't know anything about CPG. He had no employees, no retailer connections, nothing. And it just didn't quite sit right with me and Stephen. And he just had money.
Starting point is 00:39:01 And I think like as any entrepreneur, the saying of like don't take dumb money was always something I think most people know, right? that's not anything new. And I was on my phone, I think like two days later after him offering this money, and I saw Shark Tank was coming to town. And they had open casting calls in three days. So we went and stood in line amongst hundreds of other people. It was an eight-hour ordeal. And we just pitched our hearts out. And immediately after pitching our product, which you only get two minutes to pitch elevator pitch, they were like, this is a fantastic product. You guys are definitely going to make it to the next step and then it goes dark. And you're like, we're going to make it on Shark Tank. And then you don't hear anything for a few weeks. And then they're like, oh, hey, fill out this paperwork.
Starting point is 00:39:44 And then they go dark. And it's just like a very long process. But at that point, even the thought of getting on Shark Tank, we did tell that other investor, hey, we have to see this through and see if we can get a deal on Shark Tank. And so we said no to him. And so you find out that you are going to go to L.A. and appear on Shark Tank. And usually the way it works based on conversations we've had on this show with other people who are on it, is that you film it. And then a few months later, it airs and you're not always sure whether you're going to be on it. I mean, usually they kind of give you a heads up that you're going to make it on. But they do cut people out. I guess 2018, you both fly out to L.A. to film your episode?
Starting point is 00:40:32 So I was pregnant with our second. I was three months pregnant with our second when we did that elevator pitch. And then it basically took six months for us to go through that process for them to finally say, hey, you guys are going to be on shark tank. So I ended up being nine months pregnant on shark tank. And the thing is they wanted us to be matched up with a certain shark, right? The end of the day, the show wants you to be successful. They want you to get a deal.
Starting point is 00:40:58 And so through the ups and downs and learning through all that, we fly out to L.A. you know, the night before they tell us who our sharks are, and then we go in the next day and we pitch. You go on. You go on. I know that, you know, you don't normally meet the sharks until the screen opens and you walk on stage and you start pitching. And one of the sharks was a guest shark, Rohan Oza, who had been involved in branding around Coca-Cola products and he was involved in buy and he had been involved in other, I think, vitamin water. I can't remember exactly what. Tell me a little bit about, so you make the pitch and people can see it. And were they, did you feel like, you know, sometimes they're not always so nice. Did you feel like they were nice to you guys? No. No.
Starting point is 00:41:46 Mr. Wonderful called us an apple cider vinegar roach. They didn't get that we were an apple cider vinegar drink. Like, what were we doing? Who are we? Someone else that was on was Bethany Frankel, who kind of has some beverage experience. as well and we were really excited about her, even though she was screaming at us the whole time because we made her take a shot at apple cider vinegar and she wasn't too happy about it. And they didn't like it?
Starting point is 00:42:12 No, they don't like it. Beverage is also very difficult. It's very capital intensive. If you don't know how that world works, it's hard to find the right investor. And honestly, the right investor for us was Rohan Oza. Was it clear to you right away that he was interested that his questions, were different from the others? You know, it's a, it's hard to, it's hard to track that on whether or not he was asking
Starting point is 00:42:40 serious questions. But I also know sort of looking back, he was definitely playing it cool, right? He was definitely not trying to show his cards. You know, he leaned in and he was basically like, you know, the product is great. You know, he's like, I'm interested in this thing. But he's, he's like, it's going to cost you a lot more than what you're asking for. What were you guys hoping for? I think we initially went in there asking for $400,000 in exchange for 10% of the business.
Starting point is 00:43:07 So you were valuing your business at $4 million. We knew it was high, but I mean, we had worked with the producers to basically say, hey, listen, like, you can't go in asking for the number that you think you're going to get. You've got to start a little high. And so ultimately, I think it was, we ultimately landed on what I think was a fair valuation and definitely gave Rohan enough. skin in the game to be energized and excited about being helpful. So looking back, that's not normal to walk in and ask for that amount of money. Usually people ask for 50, 100,000, 200,000. It's a lot easier for a deal to get done.
Starting point is 00:43:47 So us walking and asking for $400,000 is quite high. And so he did come up to the 25%. And I'll be honest, we looked at each other and we immediately said yes. Because we just knew he was the right partner for us to really take it to the next. next level. So when he offers you four grand for 25% of the company. But the other thing, I guess, is that Rohan says to you guys, hey, this has to, you need a complete overhaul, a complete rebrand. Tell me about what he said to you and how you reacted to that initially. He basically said, look, you have a fantastic story. You have a fantastic product, but you're branding is shit. And honestly, it didn't offend us because we knew we had spent so much time on the product. We'd never thought about the brand or the marketing piece of it.
Starting point is 00:44:42 And it was such a piece that we were so desperate to kind of figure out that we were like, yep, let's do it. We were like, let's change the name. Let's do the whole rebrand. We were so here for it. And what did he say needed to change? Everything. But we were okay with that because we had already decided that we were going to to change everything. We wanted to change the name, the position. At this point, it was
Starting point is 00:45:06 apple cider vinegar drink. And he was like, no, this is so much bigger. This is soda. And at the time, we were like, well, we don't know for soda. Like, that's a big word to, like, chew on. That's a huge category. So let's explain this functional soda space, which is like a whole new category that no one had really been able to figure out. And kombucha had tried to take on soda, sparkling water had tried to be an alternative to soda. No one had quite figured out this disruptive soda space, right? And so we're like, let's play adjacent to soda and be better for you soda. So we took about nine months and we did a huge branding exercise. Like, what is, if we're a car, what kind of car are we? If we're a girl at the party, are we the cool girl? Are we the girl
Starting point is 00:45:52 dancing on the table? Like what is the personality behind us? Are we approachable? Are we funny? So we did all of this work. It was me, Stephen Rohan, and Rohan's partner, Stevie. And it was just us for for about nine months. What are we changing the name to? We landed on Poppy, which is a playoff of soda pop. We weren't sure if we were going to do white cans or colored cans, right? Because white creates this, like, healthy halo. It's clean girl aesthetic. It's, it's, you know, clean and fresh, whereas color kind of screams flavor. It screams fun. And we wanted to approach. health and wellness from a fun lens versus a niche better for you lens. It's probably one of the bigger disagreements at the beginning. Me and Rohan were leaning more on the white side because I was like a purist. And then Stevie and Stephen wanted to do colored cans. We ended up printing the cans and we took them to the grocery store and we placed them on the shelf and we stood back and we were like which one looks best. And hands down, I will say I was wrong. Colored cans were the way to go. It just popped off the shelf and no one was doing better for you with color at the time.
Starting point is 00:47:01 So, okay, I want to get to that. But in this long period of time, between the time you signed an agreement, got rolling on as a investor, and you relaunched it, you were still selling mother beverage. And I'm assuming when the Shark Tank episode came out, there was a lot of interest in mother beverage. We did have a spike, but, you know, on the, on the back end, we started to do road shows at Sam's Club. We, we, the business. continued to grow. You know, so we, so we really had to do both. We had to rebrand, reposition, do all of that, all of that great work while, you know, sort of keeping the core business in steady state. We still had bills to pay. We still had a warehouse. We still had overhead.
Starting point is 00:47:42 Well, we went through all of that stuff of Whole Foods had taken Mother from the 14 Dallas Whole Foods. We were in the local shops. Now they've accepted Mother beverage into seven regions of Whole Foods. So then we basically had to go back and say, just kidding, we're changing the name. We're changing the packaging. Will you guys still take this? And so there was a lot of risk to that to basically have the grocery store that kind of give you your start saying, like, we love what we did, but we're going to give you guys something completely new. And then we realize, like, if we're going to call ourselves soda, we can no longer be in glass bottles. We 100% have to be in 12 ounce soda cans. And so we had these manufacturers set up, and basically what, we were like two days away from our renewal, and you had to call them and basically canceled the whole PO.
Starting point is 00:48:36 It was quite a crazy. For the glass bottles. Yeah. Yeah. We ultimately decided to go 12-ounce soda cans, colored labels. But the tricky part about that was is we had a national sprouts rollout. We had a, you know, almost national rollout at Whole Foods. with no manufacturing.
Starting point is 00:48:58 So we basically had six weeks' worth of inventory to basically sell through our mother beverage, keep our current customers happy, while setting up a new supply chain with new co-manufacturers, learning that whole thing within six weeks to get ready for a launch. When we come back in just a moment,
Starting point is 00:49:19 Poppy's big launch in March of 2020 is completely derailed. Stay with us. I'm Guy Raz and you're listening to How I Built This. Hey, welcome back to How I Built This. I'm Guy Raz. So it's March of 2020 and Mother Beverage is rebranded as Poppy and it's ready for its maiden voyage at one of the biggest trade shows in the country. Expo West in Anaheim, California. We were using this tent pole event as being our launch, right? So we had spent a lot of our money on, I think, like, almost $90,000 on building a booth.
Starting point is 00:50:11 You know, you have to pay for the space. You have to get product out there. It was like our big bet to come out and like meet retailers and really put poppy at the forefront of everyone's mind. And we ship out to Anaheim and we are one of the brands out there. Half of the people don't show up because I think on our flight to Anaheim, there was 10 cases in the U.S. like, oh, this is going to blow over in a week. Like, we're, we've put a year into this and, you know, years past with mother, like, we're doing this. And so we get out there. And then a day into it, they canceled the entire thing. And at that moment, it was just so devastating for us because
Starting point is 00:50:49 we're like, goodness, this was our moment. Where do we go from here? We pack up the booth. We get back on our flight and on our flight home, there was hundreds of cases, right? It just had escalated really quickly within COVID. And we were so thankful that we had loaded in a ton of product into Amazon. Grocery stores basically told us, we're not going to cut you in. We're more concerned with putting toilet paper on the shelf. So we kind of just focused on Amazon. We didn't do anything on our own website for the first little bit. And it was the first time everyone in the world was thinking about their health and wellness. They were thinking, hey, how can I pantry load on things that are shelf stable and that they taste good?
Starting point is 00:51:35 And so we just really leaned into that thinking for the first, you know, month and a half of business before everyone kind of started figuring out this whole COVID thing. And, but I mean, imagine initially you were really nervous. You were worried. We were devastated. I think Allison and I were talking about this. I think one of like the entrepreneurs are slightly delusional, right? Maybe we don't have, we're delusional optimists.
Starting point is 00:52:01 And so I think it was, it was, we were in a good position because we didn't have a ton of overhead. We didn't have a ton of employees to support. You know, we were, we were a really lean team and we were growing, right? And so we didn't have a ton of things to support. And so it really left us in this opportunistic situation where we were able to be agile and disruptive in our approach to market and how we interacted with consumers. It was a lot of pressure. But it honestly forces to think really outside of the box.
Starting point is 00:52:32 All right. So there's an update on Shark Tank. I think that airs in April of 2020. Just kind of an update on what's going on with your brand. And that, I think, instantly you get to boost, right? And on most of your sales at this point are through Amazon, direct-to-consumer. Yeah. So we were mostly on Amazon.
Starting point is 00:52:53 And then in April, grocery store shelves were starting to do the load-in. kind of had gotten their feet underneath them. We were kind of starting to hit the retail shelf. And we had filmed an update on Shark Tank about Poppy and the brand. And it aired Friday night, second week of April. And it just blew up. So we hit number one on Amazon's hot new product list. We're doing like 3,000 on Amazon quickly over the next few months.
Starting point is 00:53:20 We're doing $250,000 on Amazon a month. It just like absolutely blew up our business. And really, it was really eye-opening for us. to have a national commercial month to, basically. National commercial, it's a shark tank, basically. A free commercial, basically. You know, so this was really the big spike in our business. And as Allison said, we were thankful that we had onboarded Amazon.
Starting point is 00:53:42 We had shipped in what we thought was a lot of product into Amazon. I think we honestly sold out of that in like the first couple hours after it launched. Tell me about, I mean, that, you know, and we've heard this before, which is a shark tank episode can really boost sales, but then it can slow down. Then things can slow down and people stop ordering. I think for you guys, what really helped in some ways, because it's still COVID and people are still not, you know, people are going to grocery stores, but not, you know, it was a different experience. I think for you guys, social media really became a lifeline, especially TikTok. Tell me a little bit about how you started to use TikTok.
Starting point is 00:54:27 And yeah, how that began and how you used it? Well, for us at that point, I remember at the Update Shark Tank, there were some TikTokers dancing in the Whole Foods that we were filming in, and one of them grabbed my phone and downloaded TikTok on my phone. And I remember getting on it and playing with it. And it really was no brands, no brands around TikTok at this time. A lot of people were introduced to it through COVID and kind of were bored at home and started creating.
Starting point is 00:54:55 So it was like this creator platform. And I just in my head kept thinking there has to be a way to market to people on here. There's hundreds of thousands of people. Now, you know, millions on there. And it's free marketing. So I remember being like you guys, TikTok's the next Wild Wild West. We've got to do it. Rohan and Stevie, including like Stephen, he was like, I don't know, sure.
Starting point is 00:55:16 Like no one really got it. And I just was like, okay, I'm going to get on. I'm going to spend my nights and my weekends and I'm just to start posting. So I started doing recipe videos. I was dancing. I was doing transition. I had my kids running around in it. I made Stephen B. in him with me.
Starting point is 00:55:29 And I was just trying literally anything. And honestly, one night I sat down on the couch and I just told my story. I did it in one minute or less of started this in my kitchen, got a deal on Shark Tank. It's five grams of sugar. It's apple cider vinegar. It's this, da, da, da, da. And I posted it and went to bed. And when we woke up, we had sold $100,000 on Amazon that night.
Starting point is 00:55:53 and everyone started calling, where did this spike come from? And no one thought to look to TikTok. And so I was like, you guys, we went viral on TikTok. And then everyone's eyes were open from that moment. That's amazing. I mean, the growth of the product really just kind of explodes after the launch, the rebrand and the launch in 2020. You know, by 2023, it's $100 million in sales.
Starting point is 00:56:18 And then, you know, it's like, you know, the next year, I think it's 500 million in sales. I want to, I'm curious, what were you, were you thinking that, that regular soda was your competition? Or did you think that sort of better, quote unquote, better for you drinks or less sugar, lower and sugar drinks were your, your competition? Look, I think we created a brand new category. So when we had Poppy going to grocery stores, they didn't know where to put us. So in the early days, they put us next to sparkling water. they put us in the enhanced water set next to the buys and the vitamin waters and the coconut waters,
Starting point is 00:56:58 you know, just a little bit of a higher price point because if you were to put us at that point with a product that was kind of not quite proven, not a lot of consumers knew about it, and you put it a $2.50 can next to a 99 cent soda can, there would have been a disconnect. So for the first few years, we worked with the retailers figuring out what is Poppy and what category does it live in, even though on our end, we always knew our mission was to revolutionize soda for the next generation. And so as we grew, as our awareness grew, we slowly started to carve out space within the soda sets. And now we have an entire new set called the modern soda set in retail and in grocery stores that did not exist five years ago. Yeah, and I think it's really interesting. It goes all the way
Starting point is 00:57:46 back to the positioning work. We were the first ones in the functional, you know, sort of modern soda to actually call ourselves a soda. We call ourselves a prebiotic soda. We were the first ones. And at that point in time, it was crazy because soda was at the pinnacle of a dirty word, right? It was sparkling water. It was like, ooh, who drinks soda? Like, that's so bad for you. Like, why would you ever do that? You know, so it was really a bold decision for us to put prebiotic soda on the front of the pack. And as, and as Allison said,
Starting point is 00:58:17 I think it was just building on building year after year, month after month, as we gained a bigger audience. I'm curious. I mean, better for you is a tricky word because, you know, a lot of people clean and other,
Starting point is 00:58:30 other terms that are, they're not, you know, sort of technically, sort of defined. But obviously, Poppy has considerably less sugar than a can of Coke,
Starting point is 00:58:41 right? Can of Coke has, what, 25, 30 grams of sugar, maybe more? poppy on average, I think it's five grams of sugar and it's got a little bit of two grams of fiber. So how would you identify the people who were buying it? Were they buying it because they felt like it was healthier?
Starting point is 00:58:56 Or were they buying it because they liked the taste? Or like, what did you start to find out, like, about the people buying it? Were they buying it for its perceived functional benefits or for completely different reasons? Well, basically we were able to lean into the brand versus, hey, drink this because it's better for you. Nobody likes to be told to do that. They want to, we were intentional with the consumer journey. We wanted someone to see the can and be like, that's so cute. We wanted them to sip it and say, wow, this tastes amazing.
Starting point is 00:59:30 And then we wanted them to flip around and read the nutritional and say, whoa, this is better for me too. So when did it start to become clear to you guys? that, you know, and I'm assuming when, you know, when Rohan got involved, part of the conversation was, well, there's got to be an exit here, right? That maybe it's an acquisition or we go public or something like that. And I imagine that, I mean, once you hit 500 million, maybe once you had 100 million in sales, you start to get interest in potential acquirers. Yeah, I think, you know, we've, we've had one of the fastest, like, the fastest journeys and sort of beverage hits. We grew triple digits year over year until we sold once we rebranded from Poppy. You know, I think that we were in a really interesting period of time.
Starting point is 01:00:20 We were operating in a COVID supply chain. You know, cans now cost 11 cents. We were paying 40 cents for a can during COVID. We were shipping containers of essentially air, empty aluminum cans all the way from China, just so we could fulfill the demand. And so I really think that that was when, you know, You know, we thought that we had something as far as an acquisition goes. But I think every year, we just continued to see the business more than doubled.
Starting point is 01:00:49 I mean, honestly, from day one, we knew we were going to sell. So, like, let's be real. So basically in the world of beverage and in particular soda, you have two avenues. You can sell to a big strategic or you can go IPO. Well, IPO is great, but you don't gain distribution. partner like Pepsi. So for us, we, let me just give you an example, we are the official soda of the Lakers and we're not allowed to be sold in that stadium because of contracts. So now, us getting bought by Pepsi, which is incredible, we now can go from 50,000 locations to 350,000
Starting point is 01:01:29 locations, right? Because they have massive distribution. I think it's not a secret. Pepsi acquired Poppy in March of 2025 for almost $2 billion. which was just incredible. I mean, we, you know, between the time you launched and March of 2025, was essentially five years. Correct. And it's interesting. When we first started out, it was just us and our story and Poppy for the first few years. And then a really big tipping point for us was doing our first Super Bowl ad, where we really gained that cusp of we said we were a soda, the future sodas now. We kind of put like our flag in the ground in our ad. we said soda 17 times and that we were the future of soda.
Starting point is 01:02:12 And after coming out of that, our awareness tripled overnight. We started getting some interest from the strategics, which was always the goal. And we kind of like went from mom and pop brand to challenge your brand to establish brand, which is really, and we did it really quick to your point in five years, which is absolutely unheard of. You know, we thought we were going to double the business from 22 to 23. And instead we 4X the business. And in large part, it was because of the business. Super Bowl ad. We planted our flag and we said, we're soda. And we had also been seeing that
Starting point is 01:02:45 with how consumers were repeat purchasing the products and the retention that we had. But it was really like our big coming out moment. When Pepsi approached you with such a, I mean, approached a company with such a huge offer. I mean, it must have just been mind-blowing to imagine that that was going to be the outcome. Honestly, when you go through these things, a lot of people don't know is you spend over a year you meet them it's almost like a dating process it's not like they just give you an offer and like two days later you say yes let's do this and their motto which consistently is what we're still hearing is let poppy be poppy and i think as a founder when your biggest fears going through that is that the brand will lose itself or it'll change like i have
Starting point is 01:03:31 all those fears our consumers have all those fears and Pepsi just i feel like the big strategics they've done it wrong before. And they didn't want to do it wrong with Poppy. And so we just kind of like got that from them. And so it was stressed. I've never felt sad, happy, stressed, excited, like all within the same day, multiple days in a row for weeks, right? It's a toll.
Starting point is 01:03:55 It does like a tool on your body, definitely going through something like this. I'm curious, as you were building the business, right, in the early days, you were a couple, right? And a lot of times, on this show, if I've asked people, would you work with your partner? And there are different kinds of responses. But I would say, and I work with my wife, but I would say a lot of people would say, I'll never work with my partner. I can't. You know, it's too complicated. I mean, were there ever moments where your business relationship created tension or do you think just your personalities are just naturally matched to make the business side work too? Early on when, so okay, early on when we were really early in mother beverage days and it was really hard with working multiple jobs, having a family, well, scaling a business. I remember I used to get really upset when Stephen wouldn't take time out of the day to get me flowers or why do I not get chocolate on Valentine's Day? And we finally sat down one day and it was just like, we got a pick, right? Is it marriage, kids, or the business?
Starting point is 01:05:03 and what do we like we this is killing us and I honestly at that moment we looked each other and said our marriage is great we love each other we want to be partners let's focus on the kids in business and just know that we're good and once we kind of let go of that expectation a lot of the pressure went away so then when he did get me flowers it was extra special it wasn't because of a holiday and so that was really early on and just like understanding that it was okay and that just to show up where we could. And I wouldn't do it again without him. Yeah, absolutely would would do it, would do it over again. I think the biggest thing about Allison and I think why we work is because we're 100% committed at all times. It was, it was really hard. Like I said, there was dark days.
Starting point is 01:05:53 We didn't have money. Like we didn't have, we were technically unemployed. We weren't paying ourselves a salary. We didn't have health insurance. And I think that we've, we've done. the best that we could and still very much in love with Allison and very much excited to do this in the future together again. When you think about the journey you took and, you know, I mean, this just really started in 2016 and here we are 2025 and really started in 2020 rebranded. And it's been a massive success. I mean, how much of that and your journey do you attribute to the work and the grind and how much do you think had to do with luck and timing and the circumstances, people being open to this product today.
Starting point is 01:06:37 Steven? There's a quote that's always top of mind for me. The harder I work, the luckier I get. And so I really think it was a recipe that required all of it. Timing, luck, hard work, grit, passion, intensity. It required all of those elements. Yeah, and for me, I really struggle with saying it was luck because we worked really hard. I do think there were a lot of doors that opened that maybe a lot of people would say we're really
Starting point is 01:07:09 lucky. But I just know all the hard work that went into that. I think it was us knowing where to push, where to take the help, and kind of where to step back was a really big piece in allowing other people to come in and help, right? I think that it's a lot bigger, like Stephen said, of this once-in-a-lifetime generational brand. Not a lot of people can say that they created a product that our kids and cran kids are going to know as soda. And I just think that's just so much bigger and cooler than saying we got lucky. That's Allison and Stephen Ellsworth, the co-founders of Poppy.
Starting point is 01:07:55 By the way, Allison is heading back to Shark Tank once again for its new season, but this time she'll be a shark. She's one of just two former contestants to ever appear in that role. The first one was also a guest on this show, Jamie Simanov of Ring, which is a great episode, by the way. Hey, thanks so much for listening to the show this week. Please make sure to click the follow button on your podcast app so you never miss a new episode of the show. And if you're interested in insights, ideas, and lessons from some of the world's greatest entrepreneurs, please sign up for my newsletter at gairoze.com or search for Guy Raz on Substack.
Starting point is 01:08:29 This episode was produced by Ramele Wood with music composed by Rer. from Tinaerblewee. It was edited by Neva Grant with research help from Alex Chung. Our engineers were Patrick Murray and Jimmy Keely. Our production staff also includes Casey Herman, Chris Messini, Carrie Thompson, Catherine Seifer, Carla Estevez, Sam Paulson, Andrea Bruce, and Elaine Coates. I'm Guy Raz, and you've been listening to How I Built This.

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