Russell Westbrook & The Chainsmokers Invest in Poppi Soda

Poppi Secures $13.5 Million in Series A2 Funding

Poppi, a brand specializing in prebiotic sodas, has successfully completed a $13.5 million Series A2 funding round. The company’s core objective is to establish itself as a leader within the emerging “functional soda” market.

Investment Details and Notable Backers

CAVU Ventures spearheaded the investment. A diverse group of prominent figures from sports and entertainment also participated, including Russell Westbrook, The Chainsmokers, 24kGoldn, Kygo, Halsey, Kevin Love, Ellie Goulding, Olivia Munn, Nicole Scherzinger, Chantel Jeffries, Bryce Hall, Noah Beck, Josh Richards, Griffin Johnson, and Blake Gray.

The Origin Story of Poppi

The company was founded in 2020 by Stephen and Allison Ellsworth, a husband-and-wife team with backgrounds in oil and gas research. Allison Ellsworth’s personal experience with persistent stomach problems, which lacked a clear medical diagnosis, served as the initial impetus for the brand.

Her research led her to discover the critical link between gut health and overall immunity – specifically, that approximately 80% of the body’s immune function originates in the gut. She then explored dietary solutions to alleviate her symptoms.

From Kitchen Experiment to Market Success

Apple cider vinegar proved beneficial, but its direct consumption presented a challenge. Allison Ellsworth then began experimenting with recipes to create a palatable beverage incorporating the vinegar’s health benefits.

The resulting concoction gained popularity at a Dallas farmers market, ultimately leading to an opportunity to sell Poppi in Whole Foods Market. This success prompted the Ellsworths to leave their previous careers and dedicate themselves fully to the brand.

They even secured an investment from Rohan Oza, co-founder of CAVU Ventures, during a December 2018 appearance on Shark Tank.

The Poppi Formula and Benefits

Each can of Poppi contains roughly one tablespoon of apple cider vinegar, combined with sparkling water, real fruit, and plant-based sweeteners. This unique formula delivers a balanced dose of gut-friendly prebiotics.

These prebiotics are known to support healthy digestion, bolster immunity, and contribute to radiant skin.

Availability and Pricing

Poppi beverages are available in nine distinct flavors, including watermelon, strawberry lemon, raspberry rose, and orange. They retail for $2.49 per can.

Consumers can find Poppi in over 7,500 retail locations nationwide, such as Target, Safeway, Kroger, Publix, Whole Foods, and Amazon.com.

Consumer Response and Brand Vision

The Ellsworths are now receiving positive feedback from customers who report experiencing significant improvements in their well-being after consuming Poppi.

“Our primary goal is to offer a product that is both healthy and enjoyable,” stated Allison Ellsworth. “While the health benefits are a valuable addition, our focus remains on creating a great-tasting beverage for everyone.”

Market Growth and Poppi’s Position

According to data from SPINS, the functional soda category has experienced substantial growth, increasing by 465% year over year. Poppi currently holds the No. 1 position in this category, based on four-week data ending June 13, 2021.

Future Plans and Expansion

Prior to this funding round, the company operated on a bootstrapped basis. The new capital will be allocated to expanding distribution networks, increasing the team size (currently at 50), and bolstering marketing efforts.

While currently based in Dallas, the company intends to relocate its headquarters to Austin.

The funding will provide Poppi with a 12-month burn rate and enable continued high-growth momentum, according to Stephen Ellsworth. The company’s revenue grew by 550% year over year.

CAVU Ventures’ Perspective

Stevie Clements, chief brand architect at CAVU Ventures and a member of Poppi’s board, highlighted the company’s compelling product, strong founders, and impressive growth trajectory as key factors driving their investment.

She also emphasized the growing consumer demand for products that offer added benefits, particularly in the area of gut health. Clements believes Poppi’s ability to “combine genuine functionality with exceptional flavor” sets it apart in the market.

“The soda category is ripe for innovation, and Stephen and Allison have built an authentic brand that resonates with consumers,” Clements added. “We are confident that a healthier, great-tasting soda with real benefits can significantly disrupt the multibillion-dollar soda industry.”