529: She Built a $100M+ Soda Brand From Her Home Kitchen | Allison Ellsworth [VIDEO]

0:00I always say I live the American dream from my kitchen to Shark Tank and we got to the point where we needed money or we were going to fail. We stood in line for eight hours, convinced we are going to be on Shark Tank. At the end of the day, 0.02 % of people get to that level, and it's pretty life-changing. Coachella was coming up, and Alex, we kept popping up in her videos organically. Like, she's so amazing that we decided to go all in. It was almost like a reality show that people were, like, tuning into versus an influencer posting on a paid trip in a house. It was real. It was authentic. We couldn't quite find a Super Bowl ad.

0:34They were all sold out. Someone called us, like, hey, we got a super broad for you. This was four days before the Super Bowl. It aired one minute before halftime, right before Usher went on. It was like the most magical moment. We tripled our awareness overnight, and it was such a great inflection point for the brand.

0:52Hear the stories, learn the proven methods, and accelerate your growth and future through entrepreneurship. Welcome to the Founder Podcast with Nathan Chan. Well, the first question that I wanted to ask you is how did your personal health challenges inspire you to start Poppy? Goodness, that's such a good question. I feel like a lot of people come up with great ideas in life and they usually stem from personal stories or personal problems. But previous to starting Poppy, I worked in oil and gas and I traveled. And I guess my question for you is, have you ever been on the road and traveled constantly and had access to one good food, a place to even work out or gotten good sleep?

1:40No. And I just feel like in my previous career, I was traveling for like seven years and it was a constant toll on my health. And I was just desperate to find something that made me feel good. And I did what we're all guilty of. And I started Googling symptoms. and what kept coming up on the internet is to reset and detox your body through eating healthy or eliminating certain foods or items from your diet. And that's just kind of started my journey on to path of health and wellness. Yeah. So when did you start the brand? So when I first came up with the idea, it was back in 2016 when I was going through this health journey.

2:23spending time in my kitchen is when I discovered the ingredient apple cider vinegar and how high sugar and what it does to your body. And I had horrible tummy problems. My skin was a mess. And that was in 2016. And then we launched Poppy in 2020. But there was a lot of crazy entrepreneurial stories that got me from there to the day of launch and then to where we are today. So I want to jump into all of these stories. But the first one that I have to ask you is you had no experience in the beverage industry, no experience in manufacturing products. How did you navigate just the whole supply chain piece?

3:04You started this brand with$15 ,000. Like talk us through that. I think for me, I was raised by entrepreneurs. So my dad was a serial entrepreneur, and he did it for the rise, the build and not the money. And so when I finally got into it, where I was like, okay, we want to do this, we want to start this product. It was almost like you say yes and figure it out later. just navigating through supply chain manufacturing and not having money. I look back and I think, well, that is kind of crazy once you kind of say it out loud, but there was just no other option because I'd created something I was so passionate about.

3:45And at the end of the day, I just wanted to share it with people. And with that, it was funny. We were at the farmer's market. One of my friends, he had a brewery and it was local in Dallas, Texas. And he's like, hey, I can actually show you guys how to make your product on a bigger scale. It's very similar to brewing beer. It's like, well, that sounds easy enough. And we just started buying equipment and we would work during the week to then buy more equipment on the weekend at the farmer's market. And just, it was this cycle of six months of working, working, working to get one more little piece of equipment to continue to scale.

4:21We were filling bottles one can at a time, one bottle at a time. then we got a filler and we could do four at a time and we just slowly built our way to I think we got to about 500 ,000 in revenue and it was just a slow build and it was slow and steady and we just didn't give up yeah so you launched in 2020 during COVID how did you get your first sales especially when you started selling at farmers markets talk us through that because those humble beginnings. It was very humble. I mean, we both gave up our careers. I was three months pregnant when I decided to do this. We had just bought a house and we took our life savings and put it into this.

5:05And we got really lucky early on. We had a local forager from a grocery store come up to us and say, look, there's nothing really like this in a grocery store. You guys should take this past hobby to business. And it was an aha moment for me to be like, huh, maybe I can do this. Maybe we can make some money. But now how do we scale it? How do we, it was just me and my husband that same at that time go from two people to then selling in a grocery store. I mean, I didn't even know what a nutritional panel was on the back of a packaging or how do you figure out how much sugar is in a product? It's these simple things that you don't know at the beginning.

5:45And once again, there's a lot of resources out there to kind of figure it out if you if you do the research and you dig. And we got into local Whole Foods, which is the grocery store chain. And then we got into a point where we were building a brand, it was successful. And I always say I live the American dream from my kitchen to Shark Tank. And we got to the point where we needed money or we were we were going to fail, right? We were going to go out of business and you don't want to take on stupid money is what everyone always said and i was like oh shark tank that makes sense yeah so you raised 125 000 from friends and family leading to a 500 000 in sales in your first year of business and most of those sales they came from farmers markets right and then whole foods so we were in 14 locations that's it 14 grocery store locations a few cute little shops that were coffee shops or um you know sandwich shops and then of course we did sell a little bit online but it was absolutely nothing okay all right and like that's pretty impressive growth for first-time founder new business you know during like you know cover days right um talk me through kind of what were some of the key strategies or decisions that made that possible?

7:08I think that's like the early days with the$500 ,000 in revenue. But after going on shark tanking, getting a deal, the big piece of that was we had a great product, had a great story of why I started this, right? I started this because I wanted to share it with people. And at the end of the day, the next step was to continue to build the brand. So we decided to take nine months off at that point and do a total rebrand, right? From what color is your packaging? Do we change the name? What are we trying to say? Who is our consumer? Because I think a lot of entrepreneurs when they're starting a business, they're like, how do I make this product to get it on the shelf?

7:52And we were manufacturing ourselves and we were more concerned with how do we get caps on bottles than building a brand and building a community? And those are very different things. And so through the process of building the brand and going through a rebrand, we were able to launch Poppy actually knowing who we were in March of 2020. And that is of course, right when COVID hit. So talk me through that Shark Tank experience. What was that like? I actually, when Shark Tank came to Australia for the first season, I applied for founder, like when we just had a magazine no podcast show nothing and I was like got to the first round or the second round and they put me and saw how I was behind camera and the and the producers they said to me I'll never forget they said to me Nathan this is incredible what you're building with founder whatever happens you know whether we put you forward or not like congratulations on all your success I'd only been working on it for about two years and I just went full-time on it and I thought for sure I was going to be on Shark Tank and I followed them up and they said yeah we'll be in touch and then like two weeks later I got an email saying sorry you didn't get make the cut and I was like oh my god but to be honest I didn't go on there to raise money I went on there for publicity like talk like nobody says that though like they know that it's new yeah that's right.

9:21That's right. So, so tell me, like, tell me about your experience with Shark Tank. So mine was wildly different in the way of, I love how green I was when it came to being an entrepreneur of the say yes and figure it out. It was what you did. You went on Shark Tank. So when we got to the point where we needed money and let's be real, me and my husband, he was working a second job. I'd had my first, we put every ounce credit cards were maxed out, right? We are like all in at this point. And this is a we need this moment. And I remember going to an open casting call. It was the first time I'd ever gotten a babysitter for my firstborn.

10:04And we stood in line for eight hours. Same thing, pitched my heart out to them, convinced this is we are going to be on Shark Tank. We did, you know, I know you didn't, but we did get callbacks month after month. And what was crazy through that whole process, it was a six-month process from that to actually being on the show. So there's so many layers in between. There's a ton of background checks. They dig into your business. Are what you are saying or selling, is it the truth, right? And then is it something that could be masked for everybody? And after that whole process, I remember being three months pregnant with my first.

10:43By the time I got on the show, I ended up being nine months pregnant and had the baby 10 days later. but it's so blind and you don't know what's going on. Look, I've learned since then you can apply online and you don't have to go through all that. And they actually reach out to a lot of businesses as well that are successful. So I'm really proud of from standing in line to getting on to getting a deal. I think it's like a 0.02 % of people get to that level and it's pretty life-changing. It definitely changed my life. So you raised$400 ,000 from Rowan Osa. And you said you took nine months off.

11:22So you stopped selling and you took nine months off to do the rebrand. Talk me through kind of what that looked like and what that process was like. Because I think that's a really interesting thing. Like you said that you guys, you know, your husband was working a second job and you guys put everything into it to just stop and go, hey we're not going to sell like there's no sales coming in there's no money coming in like like talk us through that like that's a bold courageous approach yeah and it was interesting because even once you get a deal on shark tank it's not like you have the money the next week there's diligence that you go into and sometimes the deals fall through afterwards so it took us about six months from getting the deal to actually closing it and it's funny we closed the deal friday and our episode aired Sunday.

12:08So we still had not been funded. We were kind of still where we were through that whole process. And in that meantime, we had gotten approval to go in almost nationwide to Whole Foods with our previous product. And we thought, look, we want to do a rebrand here in the way of we have a fantastic liquid. We call it lightning in a bottle. It tastes amazing. People are obsessed with it. But how does the brand match it? And if we launch it as is, you know, you get literally like three seconds for people to decide if they're going to one, drink you or try your product, right? And we wanted to make a good first impression.

12:43And it was really hard at the time to be like, no, we're not going to launch or we're going to say no and wait a year. But it really was the best decision because we launched knowing who we were instead of launching and trying to figure it out as we went. So let me get this right. When the episode aired, you guys weren't taking on sales? So when the episode aired, we'd done the 500 ,000 in revenue with our previous brand. It was called Mother Beverage. And then once we got a deal, we took time off and then launched Poppy in March of 2020. And I think we launched in March during COVID in our first year in business, we did like 3.5 million in just like six months.

13:25So it was a really quick growth just even in the first year. But yeah, it was one of those things that we definitely pulled back. But I love that we launched during COVID because we were a new brand, I didn't have a traditional background in marketing. And so when it came time to start marketing to our consumer, from the beginning, I was like, Oh, we'll just do this different. And I think that played a huge piece into how Poppy so digital first is because if you think back that was the only way to talk to consumers at that time and we used that sense and tell me what were some of the key things that you guys did with the rebrand which you think when you did relaunch was like so like really showed that pathway to rapid growth so it was funny going through that process we had two schools of thought we were going to you know something as simple as when you're doing brand exercise, we were going to do white cans or colored cans, right?

14:29We have like our product here. And the reason we went with colored cans is we are soda for the next generation. So Poppy's mission is revolutionizing soda for the next generation. We're better for you. We taste amazing, right? It's very simple. But if you look at color, it screams fun. It screams taste. It screams delicious versus a lot of better for you products. They go white. They think clean and healthy, but we want to scream taste, fun, and flavor. And the name, we renamed it Poppy. It's a playoff of soda pop. So we just kept leaning into everything that we aspired and now are, right? It's soda for the next generation.

15:09Poppy's the number one selling soda on Amazon. Like it's been crazy and it's because we've been brand first leaning in to taste flavor and not being like this thing will cure XYZ. Like nobody wants to be told like that they're healthy, right? They just like love if it's healthy. But at the end of the day, taste is king. Hey, Founder Fam. I want to take a quick break from the show to tell you about something we're really excited about, our Black Friday offer. Because this Black Friday deal is different. If you're listening right now, chances are that you want to start a business of your own or you want to scale up your existing business.

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16:26So don't miss out. This deal closes soon. Start building your business today at founder.com forward slash plus. That's P-L-U-S or click the link in the show notes. All right? now let's jump back in the show so let's talk about taste right like how do you what does that testing process work like like how do you decide on the flavors when i first started we created products and flavors that i thought were like a sister to kombucha so for example i had like a lavender lemon or an orange cinnamon and nowadays we're seeing consumers just want products that they know and love. So for example, instead of orange cinema, we have orange soda, right?

17:11And if you think of the word soda, it usually invokes an emotion that you have within you. You might think of movies or date nights or, you know, root beer floats or whatever it is. But the problem with soda is the excess sugar kind of like a dirty word now. So the way that we see poppy and the way that we think of our flavors, it's giving you the freedom to love soda again at its best. So we've given you the freedom to love orange soda again as an adult, grape soda as an adult, or allowed you to have root beer again and not feel guilty about it. And so we really lean into those type of flavors.

17:50But I do love, we still have some of my OGs, like our raspberry rose flavor in our strawberry lemon, which is my personal favorite. So when it comes to like the, I guess you've talked through kind of the flavors, do you have like a, like a testing groups and like, how do you work out? Like what tastes amazing? Is it you deciding? Is it like, is it like, how do you work that out? Up until recently, the first nine or 10 flavors were my original recipes in partnership with the other founder, my husband. And that's just playing around the kitchen of what tastes good. Taste is king. Now that we are definitely a more established brand, we have a whole insights and innovation team.

18:37So we do flavor radar studies. We ask our consumers what they want. And then we do have a testing, quote unquote, board where we'll bring stuff in and we do blind tastings and vote on what are our favorites, what we love about them. Do they need more acid? Do they need more lemon? Like, what does it need? And what I love with that is my taste palate is very different than my husband's. I always joke around. His is like total middle America. I'm like more on the healthy end. And so then when we find something that really hits in the middle, we know we've had a home run because we know both will love it.

19:17So it's quite a bit more of a process now. But at the end of the day, there's a few flavors we wanted to launch but haven't because we haven't been able to nail the taste. So we're not just going to launch it because the data says we need to launch it either. Yeah, look, I think one thing I've learned in my journey is it's a combination of data and gut intuition, right? and you need that both. If you rely on just the data, things don't always pan out. And if you rely on just your gut intuition and not the data, then things don't always pan out. That's that entrepreneurial spirit. No, I mean, that's like my life.

19:55When I first started out, everything was gut intuition. And then I was very resistant to the data because I was like, look, I figured it out up until this point. And now I feel like over this last year, have gotten over that hump to appreciate it as long as you don't let it rule, right? And it took me a while there just like as an entrepreneur to be able to get there because we usually have this feeling as an entrepreneur, just like my way or the highway type of saying or what I want is the way to go. But I found learning to work with a team and have insight and to do it the right way. It's almost more refreshing as long as you can keep your edge, which I think Poppy's really good at.

20:38So talk me through, I guess, you said the first nine flavors were created in your kitchen, right? That's pretty impressive that you guys have been able to create this incredible brand as fast as it's been able to grow, really off you and your husband's taste buds, right? Like getting the flavor, obviously getting the branding, the packaging, the marketing, the execution. There's a whole ton of other things. But one thing that I've found, which is very consistent across all these super successful founders that I interview, is getting the product right is so key. And if you don't get it right, then it doesn't matter how good your marketing is, right?

21:22And you got the product right. How long did you really spend, like, really, like, back in your kitchen working out those nine flavors? How many tests did you go through? How many variations just for our audience to really get an understanding of what it takes to create products that get product market fit, that grow like wildfire to create, like you said, one of the fastest growing beverage brands out there. Like how many variants do you went through for just one flavor to get that right? It's funny. I will say for anyone that's in business with their spouse or significant other, it's an interesting place to be.

22:00And in our lives, our number one thing that we have ever fought about is product, right? And it's so funny, just looking back years ago when we first started, we got a great piece of advice early on. I think it was maybe two months in, we had just won a beverage competition called New Beverage Showdown, and we were sugar-free at the time. And one of the judges came up to us and said, this has the makings to be so successful, but I recommend adding a teeny bit of sugar. And I remember being like, no, I started this because of my health issues. How could I ever do this? Absolutely not. And my husband's like, I actually think we should.

22:40And we like had this big fight about it. And I remember right before Shark Tank, all these things, we decided to make the change. We immediately saw our sales double overnight over the next few months. And I'm talking little sugar, right? Our cans have anywhere from three to five grams of sugar in the entire can, 20 calories or less, like 25 calories, right? Like we're not talking that much. But I remember that was one of my first good lessons and product and in change as an entrepreneur, that it's okay to like change, you don't have to hold so steadfast to like, the beginning of this so that you know, it's like, at the end of the day, work with people, I made that my kitchen, those original nine, but we've made so many iterations over time, for example, adding a little bit of sugar into it, working with different distributors with our ACV or the stevia that we have in it or the juices, right?

23:31You get so stuck on these early days the way you've done it. Now, how do you scale that over time? And what some manufacturers that you work with at the beginning can't scale to the level that we're even at today, right? And so you've had to change and iterate. And I think as long as we stay core and true to who we are, we're always working on making our product better. So you say like how many iterations? Thousands, hundreds, right? Because from what we started with to where we are today and continually trying to make sure we have the most clean, best ingredients in our product is priority number one.

24:06Because at the end of the day, if it doesn't taste good and it's not a good product, people aren't going to buy it. So I think some people get complacent and they're like, this is a product and this is what it is and how it is. And it's tough as long as you're not like selling out, right? and like totally doing off the wall crazy stuff, which I'm not here for. I think it's an always evolution to make sure you have the best product it can be. Thanks for sharing. And I'd love to talk about shelf space. So that's something that is difficult and a major challenge for most brands. What would you share in regards to kind of advice or your experiences for getting your product placed on shelves in retail?

24:49Yeah, what I think a lot of people don't realize, especially in food and beverage, is how expensive it is to be on shelf in grocery stores. So a lot of grocery stores, especially at the beginning, want you to pay for that space. So they'll do a fill fee or something that you spend$100 ,000 and will put you on the shelf. But then once you're on the shelf, you have to figure out, one, how to market it in-store and online. So for example, what are you going to do at two for four? Are you going to do anything, sweepstakes? Are you giving away anything online on social? Are you running paid ads against this, right?

25:30It is a constant thing to drive people into retail and to get that shelf space. And then once you're there, how do you keep it, right? Because I think a lot of people think, oh, it's on there. Good to go. No, that's just where the work starts. And then how do you even get there in the beginning. So I think a big piece of advice and my favorite thing that we did at Poppy is I think like our third employee was our chief of sales. We brought in someone that knew more than I did, knew more than my husband did, and had been working in beverage for a really long time. And some people might not be able to bring someone right away salary wise.

26:08At the beginning, equity can be worth a lot. You find people, you ask for favors. Will you work part time? Will you work on the side will you send an email to introduce me to expire right you can always find a way and once you're in and if you have a good product you have a brand and a plan you know it'll speak for itself yeah and when it comes to i guess finding that right person how'd you find that person yeah he had been working in quite a few other beverages um we brought uh him on because he had been working with Rohan Oza, one of our shark, right? Our shark that we got the deal with. And honestly, food and beverage is a really small knit community of people.

26:54There's a lot of great people, but it's small. And so you kind of know the key players and we're constantly, especially where we were then to where we are now, there's very few and far between that are like really good so it's easier said than done though but networking is like key yeah and look that i think what is often underestimated when it comes to building any company is the people that you have around you and being able to scale out your vision through incredible people that are better than you at that certain thing and if you can get the right people that's that's how you scale right like you scale a business through people 100 i think at the beginning in march of 2020 it was two employees now poppy has over 200 and just four short years and it has been a roller coaster for me as a leader and an entrepreneur to learn through that process of i did everything myself from bottling it to making it to delivering it to marketing it right And now we have highly smart, specialized people that are doing that.

28:11And learning to let go through that process is something I think hard for a lot of entrepreneurs. And I think a piece of advice that I got a while ago was instead of resisting it, if you can embrace it and be part of that process, it feels so much better. And then as a leader, seeing other people do amazing things, it's also another way to be really rewarding as an entrepreneur. So, you know, I talked to a couple other entrepreneurs about this and they were like, how did you do that? How do you do it? It wasn't easy at all. There was like a lot of crazy nights. But once you get over the other side, it feels really good.

28:49yeah that look i think and i've talked about this before i think that transition from founder to ceo is difficult um or even just founder to operator is very very difficult because you started the business and a lot of the times what you did when you started the business is a is like a totally different job to now the business has grown you have a leadership team you have an exec team and you are actually getting in people's way oftentimes if you hold on to how it was in the start and it's just a totally different journey yeah but I will say through the process the players we're bringing people in because I was part of it even though it was hard it also showed the value that I had as an entrepreneur, right?