Prebiotic Soda Brand Poppi Raises $25 Million Seed Round
The TikTok-famous prebiotic soda brand Poppi, founded by Allison and Stephen Ellsworth, has secured a $25 million seed round led by Cavu Consumer Partners.
Back in 2018, the brand, then known as Mother, went on “Shark Tank” and received a $400,000 investment for a 25 percent stake from shark and cofounder and managing partner of Cavu Consumer Partners, Rohan Oza. Four years later, he remains committed to the booming brand.
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“The first two years…the brand was all about, does Poppi have the true potential that we think it has? Are people going to love the brand nationwide, as much as we do? Not just in a Whole Foods but everywhere from Whole Foods to Target to Costco to grocery stores, convenience stores, you name it. Will Poppi work everywhere, frankly the same way a Coca-Cola does but it’s just a lot healthier for you? Over the last few years, we have realized that Poppi is being embraced by all audiences,” Oza said. With this success, Oza noted consumers span gender and age.
Oza, who also sits on Poppi’s board of directors, said the “guilt-free” angle — people are meant to enjoy a Poppi the same way they would a soda, without feeling bad about it — is important, as consumers’ focus on overall wellness continues. The global functional beverage market is expected to be worth $279.4 billion by 2030, according to Precedence Research.
“We’re trying to create the modern soda of tomorrow, and that’s why we’ve invested in the brand because we believe in the potential of Poppi,” Oza said.
While the gut health space and the non-alcoholic drink category have both boomed over the last few years, Poppi has been able to break through the noise with a 148 percent year-over-year growth.
“For Poppi, I definitely started the company because of my gut problems, and it’s the story, and it’s how I created it. But now two years in, what we’re seeing is the reason people drink Poppi is because it tastes good.…We wanted this to be a product for everyone, so we wanted the consumer basically to go pick up a can and be like, ‘Wow, this is really fun packaging. It’s colorful, it’s screaming flavor.’ We want them to take a sip and be like, ‘This is amazing’ and flip it over and be like, ‘What, this is good for me?’ That’s the consumer journey that we were wanting,” Ellsworth said.
Poppi, which started posting on TikTok in 2020, has been popular, due in part to its bright colors and flavors. Plus, celebrities continue to create buzz around the brand — as The Chainsmokers and Olivia Munn both invested in the brand in 2021, and the drink was recently featured on “The Drew Barrymore Show.”
Poppi’s goal is to lead in gut health, but also play in the mainstream soda category. The brand even has a traditional cola flavor to rival other brands on the market. Poppi has a different nutritional profile to soda — products are formulated with apple cider vinegar, meant to aid in digestion, improve skin’s appearance and more. The brand’s popular Strawberry Lemon flavor has 15 calories and 5 grams of sugar, while a traditional can of cola contains around 150 calories and nearly 40 grams of sugar.
“We’re truly taking on big soda. We want Poppi to be soda for the next generation,” Ellsworth said.
With this raise, the brand, which is available nationwide in most major retailers, including Target and Walmart, will continue to scale and expand product offerings. Specifically, the brand will expand from 18,000 doors to 30,000 doors in 2023.
