In short
Podcast Summary: Uncensored CMO - Episode with Allison Ellsworth of Poppi
Episode Overview
- Title: From Shark Tank to Super Bowl - the story of America's fastest growing beverage (Poppi) with Allison Ellsworth
- Description: In this episode, Allison Ellsworth, founder of Poppi, shares her journey from launching her beverage brand on Shark Tank to becoming a major player in the soda industry, outselling Coke and Pepsi on Amazon.
Key Discussions and Concepts
Background and Foundation of Poppi
- Origin: Initially started as "Mother Beverage" in 2018, inspired by the health benefits of apple cider vinegar.
- Shark Tank Appearance:
- Pitching the brand while nine months pregnant.
- Received a $400,000 investment for 25% equity from Rohan Oza.
- Faced criticism but secured a deal that transformed the brand.
Rebranding and Initial Growth
- Rebranding: Transitioned from "Mother Beverage" to "Poppi," focusing on a modern aesthetic and healthier soda options.
- Launch Timing: Launched in March 2020, coinciding with the COVID pandemic.
- Sales Strategy:
- Opted for a digital-first approach, heavily utilizing Amazon for distribution.
- Made a significant impact by outselling traditional soda giants on the Amazon platform.
Social Media and Marketing Strategies
- Influential Platforms:
- Utilized TikTok to engage audiences and share authentic stories.
- Viral success from genuine content led to substantial sales increases.
- Community Engagement:
- Emphasized a culture-first approach, leveraging influencer marketing and community involvement.
- Implemented pop-up events to foster real-life connections with consumers.
Product Expansion and Retail Strategy
- Diverse Flavor Development:
- Transitioned to a sophisticated innovation team for flavor development while maintaining a strong taste-first approach.
- Retail Growth:
- Expanded presence in over 50,000 retailers across the U.S. and launched products at major chains like Chipotle and Target.
Super Bowl Ad Campaign
- Strategic Decision:
- Invested in a 60-second Super Bowl ad, one of the few brands to do so only four years post-launch.
- The ad aired during a peak viewing moment, leading to significant brand recognition and sales growth.
Challenges and Leadership Evolution
- Growth Management:
- Transitioned from a small team to over 200 employees, necessitating changes in leadership structure.
- Emphasized the importance of maintaining the company culture and brand integrity amidst rapid growth.
- Advice for Entrepreneurs:
- Advocated for agility, social media engagement, and the ability to pivot in response to consumer needs.
- Stressed the importance of creating a supportive environment that fosters creativity and initiative among team members.
Key Takeaways
- Authenticity in Marketing: Genuine storytelling resonates with consumers, leading to organic growth.
- Digital First Approach: Leveraging e-commerce platforms can be more effective than traditional retail strategies, especially in challenging times.
- Community Engagement: Building a strong community around the brand creates loyalty and engagement.
- Adaptability: Successful entrepreneurs must evolve their leadership styles as their companies grow, promoting a culture that embraces change.
Conclusion Allison Ellsworth's journey with Poppi exemplifies how a challenger brand can disrupt an established industry through innovative marketing strategies, community engagement, and a commitment to authenticity. As Poppi continues to grow, maintaining this spirit will be essential to its ongoing success.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:06Ladies and gentlemen, welcome back to the Uncensored CMO. Now picture this for a moment. You are nine months pregnant and you decide together with your husband to go on Shark Tank and pitch for a new business idea, risking all of your life savings to create a brand new soda brand in the US and go up against the giants like Coke and Pepsi. If that sounds crazy, that's exactly what my next guest did, Alison Ellsworth, founder of the Poppy brand, who has turned it around in just four years to one of the most successful, perhaps the most successful soft drink startups that America has ever seen. It's a really fascinating story and I know you're going to love it.
0:44Here it is. So, Alison, welcome to the show. It's great to have you. Thank you for having me. Now, I'm dying to get into how Poppy became such a big success. But take me back right to the beginning. Where did it start? And how did it turn into a business? Yeah, so I started the company a few years ago. And really, it stemmed from previous to this. I started in oil and gas. So I was on the road for about seven years traveling. And when you travel, you just get what I call is like travel belly, where you're just like, your stomach hurts, and you don't feel good. And I was just so obsessed with trying to feel better.
1:18So I would go to places and I'd actually never looked at the back of a can or a label or read a nutritional. And I didn't understand what ingredients and what they were doing to your body. And it just kind of became an obsession of mine. And that's when I discovered apple cider vinegar. And I know for you, I don't think, have you ever taken a shot at apple cider vinegar before? I haven't. However, I have watched Shark Tank where you get the sharks to try it. And I've seen their reactions. It does not look particularly pleasant. It doesn't look good. No, it's so true. it's like most people don't want to drink it they know it's like better for you so I went to my kitchen and I created the first version of poppy and I fell in love with it my husband fell in love with it so I just became obsessed with wanting to share it with everybody and after that we took to our local farmer's market in Dallas and then the next step in the American dream is obviously to go into Shark Tank and you did but but for anyone who hasn't seen the episode it's not you didn't just go on Shark Tank as the rest of us would go you were actually nine months pregnant I was.
2:18So I, you know, I, it's a theme when I'm pregnant, good things happen. So I started the company three months pregnant. Um, I remember back being life savings, putting in maxing out the credit cards and my husband wanting to pull his hair out because he's like, we just bought a house. You're pregnant. And then I was like, well, I'm not going to let this stop me from, you know, getting my goals and being successful. So when I became pregnant with their second and shark tank came about, it was just a natural progression of, Hey, getting stuff done and this is not going to stop me. So to be honest, when we first started the process to get onto the show, I was like three months pregnant and it takes a really long time.
2:54People don't know how long from like you actually trying to get on the show to being on the show is. It can take a year, I think for some people. Yeah. And it's only sort of three or four minutes, the actual bit, isn't it? It's about five minutes that they air, but you're in there for an hour. Oh, wow. Yeah. And so let's be real, it's a TV show. So they want to make sure and get good shots and reactions and they encourage, you know, all of the sharks to say and do funny things. I remember being nine months pregnant. Um, Mr. Wonderful, he's like one of the sharks. That's a little bit more of a character.
3:27And his thing is he calls everyone roaches or whatever. And he called me an apple cider vinegar roach. And then he sat back and he smiled and he was like, he was like, obviously I didn't mean that. Right. But you also have them yelling at you like, Hey, what's your revenue? How many cans do you sell? Where's your office? And you're just like, what answer do I, who do I answer right now? And it's very overwhelming that you almost like black out a little bit. And yes, spoiler alert, we did get a deal. And it didn't look like it. Because they were going, you know, it's a cottage, it's a small industry, you need much bigger production, you're not spending enough money, you haven't got a brand.
4:02I mean, you've got some pretty heavy criticism. Yeah. And it's so funny. We've done about 500 ,000 in revenue and about two years of business, which is really great for two employees. And we were manufacturing it ourselves. We had kind of taken most of our own money and built out a little facility. We were in local stores in Dallas, Texas. And it was one of those things where, yeah, we did not have quote unquote like a proven business, but I mean, for startup, it wasn't so bad, but they all started dropping like flies. They were like, I'm out. I'm out. I was like, Oh, this is not going to happen.
4:32So then finally, when we did get an offer, you know, we were talking previous to this, me and my husband had talked about what we would do if we got an offer and i don't think we think we thought about it he was like we'll give you 400 000 for 25 we're like deal like it was just like let this is life-changing this will change our lives we have had you talked about it with him before had you decided the point because because everyone watching shark tank you always go in the same thing happens they always get negotiated for more equity or for lower investment So how do you, cause you didn't even confer, did you?
5:05They were put under so much pressure to make a decision. Look, I had watched every episode up until then to study it and how it worked. And we always saw that if you talked during and we're like, Hey, I need a second. They're like, I'm off the table. Or like they, they almost saw that as like a way of weakness. And so we're like, Oh, we can't be seen as weak. So we ran like 30 ,000 scenarios before we went in there. We're like, okay, if they give this, what would we respond with? And this is our max. but honestly I don't even like that was such a long time ago I don't even think like what our max or what we would have done I mean I think if they would have said 50 or 100 or something crazy we wouldn't have done it um but it absolutely changed my life and that was kind of honestly where the journey of poppy started um you know we don't even talk about the the stuff before that but with it after that we got the deal and we went through a major rebrand well just on that because most of the sharks declared themselves out except for one very important one who actually has got a bit of experience in your category, hasn't he?
6:06Yeah, so it's funny because you don't know who the sharks are until the night before. Everyone thinks like you might know, the sharks don't know who you are until you walk out in front of them. So it's a very like, you have no idea what's going on. And so the night before we had learned our sharks and there was two on there that were like, oh, they have beverage experience. And one was Bethany Frankel. She has like skinny margarita type line. And we're like, oh, great. Female founder. She'll get it. Right. And the other was Rohan Oza. And he had been part of, I think he worked at Coke for years and had, you know, worked on bi and vitamin water and just had just so much experience in beverage.
6:43We're like, oh my gosh, we have two sharks that we could potentially do something with. And then we get in there and Bethany was just not having it. She was yelling at us. We made her take a shot of apple cider vinegar. She was not happy. I thought that was genius, by the way. because if anyone's not seen it you make them all try apple cider vinegar don't you and they're disgusted and of course you then turn it around by showing our product and how good it can be and she she kind of i don't think she was too impressed by that so she was a little salty and not happy with us reacting to the shock really funny story in that because later on with rohan he said that she looked at him was like hey do you want to do a deal together and he told her no so i think that maybe had and then he went in on it and said i'll do a deal and he's like i wanted it for myself because he just believed in the brand that much and he went straight in didn't he wasn't he wasn't second guessing he was straight in with an offer yeah straight in with the offer and then we said yes immediately we leave and then it's so funny because right afterwards they go back to your trailer and you're like wait now what i just got a deal on shark tank like what's happening and it's like a case of cash they sort of hand over i wish no it's interesting because um look we had no idea if our episode was even going to air it once again it had to make a tv and then the due diligence starts after that right like actually Rohan had to look into the business did we really do what we said we did you know all of that and that almost took about six months so we didn't close the deal until almost two days before episode aired we loved it because he invested in then his vc Kavu also invested and really believed in us from the beginning that's amazing and what advice did he give you because if I look at what you presented on the show as it was it wasn't even called poppy was it at the time what you what you presented and what we have today only four years later quite different aren't they they're so different it was called mother beverage it was a playoff of the mother of vinegar everyone's like was it because you were a mother i'm like no but that's cute but we looked at it and i remember him saying look you have a fantastic liquid your story is amazing you guys are great as founders but for lack of a better word, your branding is shit.
8:47And he goes, we got to do something about this. This is soda. I've been looking for something like this my entire career. It's here. Let's do branding. And it was funny at that moment, the first person, even before I met Rohan in the trailer on Shark Tank set was his right hand woman, Stevie. And she comes in and she's just like talking to us and she's like, we're going to do this rebrand. And we worked so close with her, me, my husband and Rohan, and we took nine months off and we went through a ton of branding exercises. So we're like, okay, we know we have this liquid. We know it's soda, but like, what are we saying?
9:26What do we look like? We wanted to be a modern soda. So for us, do we do colored cans? Do we do white cans? Which for me, white was screaming it healthy, but color screams taste. Do we want to have real fruit on it or do we want it to be modern fruit? We went through so many exercises and branding and we were thinking through, if you think of the word soda, it has this emotional connection people have and they want to be drinking soda at the movies or with their friends or at a sporting event, but now soda quote unquote is a dirty word. And so with Poppy, we give you the freedom to love soda again at its best without all the sugar and no BS ingredients, right?
10:07And so once we kind of went through that process, we're like, oh, this is simple. But what was really important is we didn't want to be like this functional, better for you tell all thing. We wanted to be a culture first soda. So with launching it, we wanted to go, we leaned in fun over function. So we're like, let's go color. Let's go crazy marketing with influencers and go social and digital first. And it was just from the DNA from the beginning. um and then we decided to launch march of 2020 right when covid hit so that's cool no i didn't realize that's it oh wow so what did that mean for your distribution then because yeah i mean how do you get it onto shelves and yeah into people's hands well more people were concerned with getting toilet paper on the shelf if you remember yes i do yeah absolutely and it was worldwide shortage of toilet paper overnight and we were supposed to have like national rollouts and like whole foods and sprouts and all these places and they had agreed to it and we were supposed to roll out, I think in April, second month of lockdown, they were not putting new products on the shelf.
11:06And so what we did from day one, thank goodness we had onboarded Amazon and from day one, we decided we will not be a D to C company. We were going to go all in on Amazon and make that the new age, right? Like I think in America, 90 % of households or something, anywhere from 80 to 90 % have prime in their house. Why not meet the consumer where they are and really lean in and double our customer service team and our just, you know, and it paid off for us poppy is the number one soda on amazon we've been that way for years very casually i know like i'm the number one soda on amazon but you outsell coke and pepsi we do that is insane and we have for a really long time i mean we've you know and then even on the entire platform because energy is really big on the platform i think we're around sixth just beverage on the entire platform and it's because we've leaned in on amazon and partnered with them and it's been really amazing for consumers to be able to get us there, especially in the early days when you couldn't get us at Whole Foods and everyone was ordering on Amazon.
12:03And it opened our eyes to be digital first. Something else that really opened our eyes to be digital first was we had filmed an update on Shark Tank the December right before COVID hit. It aired April 2020. So we had a national commercial where everyone's stuck at home watching TV, second month of business, and it just blew up our sales. And once that went out, the distribution came like, oh, the brand is here. And we got the rollouts and things really got roaring. Because I've always wondered about the connection between Shark Tank and sales. Because, you know, in the UK, we have Dragon's Den, which is the same format.
12:41And I've always thought, if I do Dragon's Den, I'm going to go on there and turn them down just for publicity. Yeah, totally. Because just being on the show, it's millions and millions of people watch. Has being on Shark Tank been a real advantage in terms of getting distribution and getting people behind the brand. Yeah, especially out the gate. Look, I think when our episode aired, because it was a Friday night, second month of lockdown, we did the Google search. We were trending higher than Donald Trump, Kim Kardashian. We hit number one on Amazon's hot new product list. The shelf was like, finally, like grocery stores were like, hey, okay, we get this, let's get this going.
13:14So it was really impactful for us. And then on top of it, there's this part of a Shark Tank brand badge of as a consumer you walk in like as seen on Shark Tank people are like oh well if they could get on Shark Tank I'll give it a try right so for the early days it was really important now we've definitely surpassed it we don't talk about it that much we don't put on our POS or packaging anymore but I think at the early days it absolutely changed our life and like the growth in the beginning but I think it was the digital first mindset that really set us apart but it didn't hurt yeah now one of the things that's quite distinctive about you is that you've also grown in social media, haven't you?
13:51And you yourself as well, as a founder, you've been the front of the brand very much as well. Was that a conscious idea because of Shark Tank to almost embody the story that you've been on and kind of embody the brand or did it sort of happen back then? You know, my background isn't traditional marketing, right? I have no idea what a funnel was or an OTT or OLV or what even linear meant, right? When I first started, I was like, I have no clue about anything. All I knew is I wanted as many people to try and see poppy as possible. And I love that because kind of all of the traditional ways went out the door because we were having to find a way to scale during COVID.
14:28So even the team that was traditional marketers were like, well, my playbook isn't going to work. We were way more open to trying disruptive, like throw stuff at the wall, test. I think more than ever, like a lot of brands were just trying to survive. And with that, TikTok was a really big piece. So I remember Instagram was all the fad, high static imagery. We were spending a ton of money on steals, no video, right? There was absolutely no video just four years ago. If you kind of think about this, it's not that long ago. And, um, TikTok was going on and I was starting to consume it just like as a human, right?
15:03I was bored at home during COVID. And I was like, it kind of hit me when I, I was like, I think that we can, as a brand somehow break through, but we have, it can't just be high gloss. It can't be models. And I was like, I'm not going to take resources from the company. I'm just going to play around with it on the weekends. So I started dancing. I did taco recipes. I did transitions when changing outfits to match my cans. I mean, anything I could do to just kind of see what worked and you know, it worked the best was me sitting down and telling my story and just being real and authentic. As simple as that.
15:35As simple as saying, Hey guys, I'm Allison. I'm the founder of Poppy. I was on Shark Tank. This is my product and telling the ingredients. And I did that one night, posted the video. I woke up at 6am and my phone was blowing up and we'd gone absolutely viral. We sold over a hundred thousand dollars on Amazon while we were sleeping. We cleared the grocery store shelves, sold out in all the grocery, our whole foods, what is going on? No one knew what was happening. that video now is over 150 million views today it's still like absolutely still going viral i have over 2 billion views on tiktok today like we we were like oh once again this really eye-opening moment of if you're just real and authentic and you can touch a lesson isn't it because you assume you have to do something really crazy to go viral but simple as telling your story that's incredible i know i think people think too much into it yeah and the consumer doesn't want that nowadays right That's not what that platform is about.
16:31You can still, you still need to have like high gloss ads on TV and do all that. But I think the platform, we adjusted the platform and I think that was the success. And so I stumbled into accidentally becoming the face and being the one where 80 % of our ads are still my face on TikTok. We work with creators, of course, and influencers, but it was just easy. It's really easy. Most companies struggle with this because they're too corporate. They kind of use social as a sort of an ad advertising platform, don't they, rather than being real and authentic. What's, I mean, after that video, what else would be top of the charts in terms of what, you know, what's done well?
17:10Yeah, so I think with that, it was always this lens of digital first. So for us, for two years, we could not do a sample. We could not do an in-world life event, right? Things were just so different. So we leaned in there. Something that we did really well was influencer and creator marketing. So we did a ton of seating. People were desperate to post stuff that was better for you during the pandemic. So we had like a 90 % open rate. If we sent someone Poppy, they were putting it on their Instagram. We had a ton of celebrities that were just organically posting Poppy by themselves. And that was another big thing that I think we always like tried to our North Star Poppy for me is the three C's.
17:50Is it creative? Is it community first? And is it part of culture? So we always say we move at the speed of culture. We move extremely quick. We can pull off anything in about two days, sometimes shorter. And so we were just part of culture within on TikTok. You have to jump on trends really quick. You have to know who the hottest, newest creator is. You want celebrities talking about it. You want your community to feel like they're part of your community. And I feel like that's always kind of been the secret sauce at Poppy is like we're not just working with a big celebrity to work with them and giving them a paycheck like we want real people that love us to be part of this journey with us it's it sounds simple but you know but it's not actually because i mean because i can imagine that you you know you being on the platform yourself every day you know what's going on but presumably it's outgrown you now isn't it so you need a team to sort of manage all this you now need to bring a team around you to help you know do what you're doing now that that presents its own challenge doesn't it well we we have two little two girlies that post on tiktok out of the office constantly and our community has fallen in love with them and adored them and we love doing little easter eggs so we just filmed a series of commercials and we like put them in there as easter eggs so that our tiktok community can go wild like we're always thinking through that lens with it like even i make like a cameo in one of them and so we have fun with it and people take it serious because we do great on the organic side but it is a huge piece of our paid side yeah driving people to our website to purchase to grow our email and sms list we've grown to over 1.2 million in just a few years through this strategy it's just part of this like 360 ecosystem that we kind of think like what are we going to do there first then that will help dictate like what we're going to do on a flavor launch or a big campaign or an out of home it's like it all kind of comes back to this like social ecosystem that we've built that's just really it's really important it's the core of who hoppy is Yeah.
19:46I mean, something you've done really well as well, get it into people's hands as well, haven't you? And I know when you launch new flavor, you often put a pop up, don't you? To create a pop up experience for people to go to. And explain how that works. Because that doesn't just get into people's hands. It also gets people talking about it on social media as well, doesn't it? Yeah. So yeah, for the first years we couldn't do it, but yeah, recently we, you know, for the first time did one and we saw this outpouring cry of how many people wanted to be with Poppy in real life. So we did our first one in LA in January of this year.
20:17And what was the most surprising, we had Paris Hilton DJ and we had celebrities and influencers come for one night and then we opened up the community. we had people fly in from Hawaii to come to our pop-up to buy a hoodie and to try our new flavor and to meet me and just to be part of it we're like wow this is special we had the line people waking up at 6 a.m over 5 000 people came over a period of two days they were like okay this is cool which led into why we're like there's something we got to do what's the next breakthrough thing which is super full which I know we'll get to and then the next one we just did in New York fashion week.
20:52Um, and what I love about it is we get better each time. So we like learned this works. Um, you know, we always do that social ecosystem. Why do people get canceled online for four pop-ups and it's like not programming the line. So we like really took that serious and we programmed our line and we had 50 cent perform at this one and we launched our new flavor cherry cola and it's through like this cultural first lens. So we pick tent poles. So for example, people New York fashion week, everyone's already there for it. So I think that's a really big piece with pop-ups. I always try to give advice to other brands is don't pick a random weekend and you think you're going to have to fly, like meet the hottest, coolest people where they're already at, right?
21:31They're going to come create a space that they want to come to create content. So we do a beautiful build out video first content corners everywhere, then get some key anchor people there. So we had 50 Cent perform. We had Enbrada. We had the Love Island crew from Leah to Cordell, like all of this amazing people. Then all of a sudden we had people reaching out that we were not paying. They were like, can I come to your party? So much so that we were the hottest, coolest party at New York Fashion Week and we are a soda. That's insane, isn't it? So it's an experience that we're always just trying to create.
22:02Going back to, is it creative? Is it culture first? And is it community first? The other thing that slightly blew my mind when we met in Austin a few weeks ago was the merch that you create not only is it really cool and uh and very on trend but you're going to turn it into an actual line as well aren't you that's for sale so during the whole like virality of tiktok i also it was like another really big passion of mine is i hate it when brands put a logo like on a t-shirt that everyone has and nobody wants to wear that it's like very salesy it's corporate it you know and so i was like i had this obsession to like find a manufacturer to cut So Die customized merch for us.
22:41So we started going down this road. Everyone told me I was absolutely crazy, but you know, we support crazy at Poppy. We love it. Um, and we created our own line, even at our pop-up that we just did, we had 22 pieces of merch that we sold out over a period of 24. Uh, we sold out two hours online and then like 24 hours at the pop-up. We were like, Oh, we got to get more, but it's become this, this brand affinity for our community and for our creators. So it just kept going viral so much so that you're the first person I'm telling this to, which is really exciting. Target reached out to us and said, Hey, you guys are one of our best selling beverages at Target.
23:20Will you do a line and target and do a hype drop with us? So we're so excited. We are dropping our own apparel line with target and every single target in January and February of this year. And like, nobody does that. And once again, these things are just, It's a loaded kind of thing to do, is it? It's not normal. No. It's so cool. And how do you decide on the line that you're going to, if you can say, how do you pick the merch that's going to, that's going to appear in Target? So Poppy, we, we kind of have this like creative, creative agency within that I run. So like I run like our creative brand, um, have an incredible creative directors and designers.
23:54And we even have on staff, like a head of product development for apparel, right? It's just become a pillar of Poppy as what people want. and so for us when we were creating it we wanted to give our community pieces from our archives that they weren't able to get because they were really viral and sold out really quick we want to make it more affordable and just kind of really on brand evergreen so we usually do it around like a hype launch of cherry and everything's red this is going to be more of an evergreen line of just like our og stuff that people can get which i think that they're really going to love and it's going to be great quality at a great affordable price for the tarjay consumer and we're excited and we're going to be launching like a new flavor with it that's exclusive that you can only get with the line so that's nice yeah that's nice i wanted to ask you about flavors actually because you've got an amazing array of flavors how do you choose like what to launch or what goes into the process of picking a new flavor back in the day it was all about taste the first original like nine flavors were me and my husband in the kitchen playing around right now we have a very sophisticated innovated innovation team we have like phd scientists that work full-time we have a lab in austin that we're always innovating um but still honestly it comes down to flavor so they might say hey this is a huge category it's whatever within soda and we need it if it doesn't taste good we're not gonna launch it and funnily enough i know this because i spent most of my career actually working at britwick in the uk which is part of pepsi or a pepsi bottle of the uk every single bit of research we did whether it's a healthy beverage or whatever taste was number one yeah every single time and literally if you if you did the taste test and you rank the flavors that's exactly how that ended up selling you can't out you can't beat flavor that's what was interesting about what you did because when it was mother it was very much um you know apple cider vinegar lead wasn't it lead on the benefits flavor second whereas now you're all flavor first you almost discover the prebiotic benefit second don't you that's exactly the consumer journey that I went, I want someone to like go to the shelf, get poppy and go, this is so cute packaging.
25:58It matches my outfit. I want to be seen drinking it. I want to be part of this brand. I want to drink it and go, wow, that tastes so good. And just refreshing. Oh, I want that with my burger. I want it with pizza. And then I want to look at the ingredients, go, whoa, this is good for me too. Like that is an intentional thing that we get across in all the stuff that we do. Right. I feel like if you lead with like ingredients, it's just becomes very boring. It's you're not to brand your product and of course poppy we always want to be like brand first it makes so much sense i mean i've worked for two of the world's biggest soft drink companies and both of them had exactly the same mission which is basically because if you look at reasons why people buy is taste refreshment health and then beyond there you've got energy and a few other things right everybody is trying to combine it tastes great it refreshes me and it's healthy and that's the thing no one's been able to do that and that's where i think you've got that exactly yeah that i think is where you've landed the sweet spot which is i want it to taste great i want it to be refreshing but i want it to be good as well yeah and it's so funny because we talk about modern soda so we have the traditional soda flavors like we have the root beer and the cola we have doc pop you know you could you could argue orange and grape or traditional soda flavors but our number one selling skew is our strawberry lemon this one that you're drinking is our raspberry rose it's one of our top skews so in my head we are defining a new category for the next generation of soda drinkers and modern soda can be a strawberry lemon poppy.
27:19We've created a category of functional pop that did not exist four or five years ago, right? If you look and look, you can pull this on the data. It's a new category that's hit over a billion in five years, right? Between us and some others. And it feels like there was nowhere to put us on the grocery store shelf when we first started poppy. Now we have what are called modern soda sets. The retailers have leaned in but we created a category that did not exist and i always say that with to other entrepreneurs that are wanting to start something or do something we created something that did not exist four years ago and look at the movement and what the grocery store is kind of like leaned on us like what do we do how where do you guys want to be on the shelf and we've worked together for four years to define what this new category is and it's exciting to see that is so key actually isn't it because you've got to give the retailer a reason to put something different on the shelf.
28:10And if you can say we're building a category that people will be coming in looking for it and it's incremental to all the other sodas and energy drinks and health drinks out there, that makes a lot of sense. Yeah. Very, very exciting. So how many retailers are you in now? Oh, you know, we're in all the major retailers in the US, you know, from the Targets, the Walmarts, the Costco's, Kroger's, Albertsons, I would say probably over 50 ,000, you know, with our 7-Eleven and convenience stores. And then we are in Canada. We're just launching there. We're in a lot of the major retailers out there. Costco really is our anchor out there.
28:44And then now we're looking definitely at international at some point, but there's just, I mean, four years in the U S there's still a lot of work to do. And, um, you know, a big piece that I love that we're just now getting into is we just launched with Chipotle, right? When you drink poppy, like it really, like if you think of soda like you usually want it with a meal right yeah and so how can we find more partnerships where we are adjacent to food so we just launched in all the chipotle so that's where like a lot of opportunity for growth for us that we're excited about and that makes sense because when what you don't really want a high sugar drink when you're eating food because it takes away from the pleasure of eating food isn't it so i can see that match and also it's really hard to get into those kind of places because they'll often have only two or three options for a drink they have That's true, actually, because I think in the US, probably more than any other market I've ever worked in, there is, you know, it's really owned by like the Coke and the Pepsi system and Dr.
29:38Pepper as well. They really own the fixtures and the contract says, you know, how do you break in amongst all that? You know, we get creative. So we just launched, we're the official soda of the Los Angeles Lakers. And this is new news, isn't it, as well? This is brand new. This is just literally breaking as well. As well. And we just get creative with it. We find ways that we can be the next soda. And we're seeing these people like the Lakers that are culturally relevant are wanting to lean into this new age, modern soda for the next generation. So I think poppy has grown. I think we're in one in ten households in America.
30:13We're making waves. We're building this new category. This stuff will just come with time. And it's, you know, there's really, if you think of soda, it hasn't been disrupted since the Diet Coke craze, right? So we'll just continue to push. And, you know, I think if we can get into more music venues and sporting, you know, all of those things, I think, could be really exciting. So you've done an incredible job of making it available. We've also taken the massive step as well as going on to the Super Bowl just four years after launch. I can't imagine there are many brands that have gone four years in.
30:42We're going Super Bowl. I mean, that's that's and you didn't just go 30 seconds, by the way, did you? No, we did 60, which is a lot of money. How do you come to make that decision to go, you know what, we're going to go Super Bowl, not just 30? We just felt last year was our year to go Super Bowl. And sometimes the best things at Poppy kind of come last minute. So to add to that, we had been talking about Super Bowl for a while, but it is scary. It is a lot of money. It's a, you know, it's a sustaining after, right? Everyone thinks like you do Super Bowl and then you get, no, you have to be able to sustain that media afterwards.
Read the full transcript
31:15There's a lot that goes into it and the planning and retail and inventory, right? But we created this piece of content and we did not create it as a Super Bowl ad. And that's why I think the piece of content is so good because we wanted to find a way to introduce Poppy on the big screen to the next level. What, what, what are we for not on social media? And we created this anthemic piece of the future soda now, and it's called Poppy. And we tested it on the Grammys and a couple big, you know, reality show premieres. And it was testing through the roof. Like absolutely people were connecting with it.
31:50I was getting texts. I just saw you on this. and um so then we're like let's go buy a super bowl ad we could not find one right we could not they were sold out if you keep in mind it was the writer's strike um no new tv like it was like one of the only live new tvs that you could buy advertising on so it was like one of the hottest super bowls it was the taylor kelsey effect it smashed all records as well didn't it the last one it was just insane it was so hard yeah it was the most viewed super all time all time wasn't it And I think it was the most viewed event since the moon landing or something crazy like that.
32:21Isn't that wild? 120 million people all watching live. I mean, and a lot of people also don't know, which I mean, I'm sure you know, but if you buy through the network, you have to do a match. So you might buy the ad, but then you have to match that same and run it. And we're just like, well, we can't do that. So we had to find it on the remnant market. And I do a lot with TikTok. I'm on this like TikTok collective. And I was at, you know, dinner and I look at someone next to me and joking around. I go, do you got a Super Bowl ad? And he's like, actually, I think I do. And he like sent a few texts.
32:48We got him on with our CMO, Andy, the next day. And we bought a Super Bowl the Thursday before Super Bowl. So three. As in three days. As in three days before the Super Bowl. You paid whatever you had to pay three days before. Yep. Wow. But. Did you know when it. Because one of the mysteries is when it's. Because Super Bowl happens over quite a few hours, right? So did you get to pick when it's. So no, it was a floater ad. Oh my God, you're going to love the story. So it was a floater ad. who had no idea where, when it was going to do it. So we, so we get it. We're, we're excited about the creative we're activating on the social side.
33:22So we're pulling together influencers to be going to the, so you're right. We're activating on social, I'm going to shoot content. We're pulling all this together in like three days, right? We had previous to that found a spot that would play if it went into overtime, there had been no overtime, um, Superbowls in the last 50 years. So we're like, well, that's not going to happen. Right. Whatever. So we traded that off and we got this one. It was a floater ad. It could also air when it says like the fireworks. Thank you for watching the NFL. It just had to play before that. It happened to play one minute before Usher went on.
33:56And so how you said it was the most viewed Superbowl. We were the most viewed Superbowl ad at that Superbowl. So in our head, we totally made this up. It makes so much sense, but we're the most viewed Superbowl ad of all time. That's a pretty good, pretty good math. So you're just before the halftime show when Usher came on. Right, when Usher came on. Which is the most premium bit. That's the bit everybody is watching, isn't it? And it comes down to how many timeouts or injuries. Like there's no way to predict it. And it aired. It was so successful. It broke through. We got on like ad age, like top lists and like all of the stuff that you could ever dream of.
34:31Our household penetration tripled overnight. It was just such a breakthrough moment for the brand. And the funny part to the story is it ended up going into overtime. so you might you could have got it anyway yeah we would have got it no but it wouldn't have been the same time nobody would have watched it the same you couldn't have beaten half-time half-time show which is incredible where were you when it played out were you at the super bowl i went to the super bowl yeah because in poppy fashion we had to figure out a way to bring it a lot alive on you know being there so i was there i was waiting for my team to facetime me i was gonna be like at the super bowl and we were filming it and that absolutely went viral as well and um That must be quite a moment as a founder to be at a super, which is amazing anyway.
35:11It was pretty. To see your brand on TV. You know, it's funny because everyone's like, are you just stopping to smell the roses? These pinch me moments. And when you're moving and going this quick, you don't really do that. But I will say that moment at that where we're screaming and then ushers coming on. It was just, that was like probably top three moments at Poppy, 100%. Amazing. I want you to ask, because you've achieved so much in a short space of time, what's the journey been like in terms of like, you know, you've gone from, as you describe it, you and your husband kind of designing it and sounds like in the kitchen and making it yourselves.
35:45You're now in charge of a pretty big operation that, you know, hundreds of people and distributed 50 ,000 stores. So what's it been like to go from kind of you basically being in charge to then suddenly you're leading a whole, a whole team? Well, it's so funny because, yeah, it was two employees when we started. And now we're over 200. We're going to grow to over 300, I'm sure, through the year. And I think it is pretty special that we were able to create all these jobs and all that. But with that, that comes like I'd never been a leader before. Right. I was an entrepreneur. And as an entrepreneur, most of the time we're kind of hard to work with.
36:20And I didn't know what team meant. I didn't understand you can't tell people that's a really bad idea because it can hurt their feelings, you know, stuff like that. So for me as a leader, that's been a really big journey for me that I've really become like in love with that learning experience because I had to learn, you know, my ego, my way isn't always the best way. And that's like to admit that and have that self-awareness. Sometimes it's still hard. No, but I did. I had to get like coaching and figure out how, you know, 360s and really understand that. And so much so that with the kind of growth that we've had, it's not normal.
36:56and it's not even normal for people that have probably been in the industry for a while. So both my husband and I, we realized that kind of early on and as a team collectively, we were like, Hey, we have to bring in people that have done this before. So my husband was the CEO. He stepped down. We brought in a CEO that had been doing it for years. Um, it was really hard. It must be so hard because they're not going to do it like you do it, right? No. And it was hard for him at first as well, because he wasn't used to doing things so differently. And so that took some time for us to adjust. And now we vacation together, we're best, you know, it's like, but we worked on it, right?
37:31Same thing happened, you know, a year ago, I was running all of our marketing and then we brought in a CMO, same, same situation where we kind of had to work through it. And now, once again, it's the best of both worlds, but I don't think, you know, entrepreneurs talk about that enough and that hardship of, it's way better to be part of that decision than that decision to be put on you and know that it's not easy at all but if you work through it and you know it's what's best for the business and the employees at the end of the day for growth it you know and still sometimes I'm like oh I just wish it could be old school not like my way but I'm just like just do it like let's move quick like the corporate and the process and like you know all of that but I guess process is good so and what's the trick to making that work then when you're bringing a new team in you're delegating responsibility whereas you've been like make a decision now that's where we go what's the lesson in terms of what can people learn from making that work?
38:22Yeah, I think for us, we're just super hyper aware of keeping our entrepreneurial spirit. So from leadership with our new CEO and all of our senior leadership, and as we're growing, they don't wanna lose what's made Poppy special. But we love to say it's like the 80-20 role. It's like, let's 80%, like get our shit together, have a calendar, have process and all that. But then leave that 20 % for that disruptive. We love black ops budgets. We love going crazy and testing. like we kind of can't lose that secret special sauce and as a team we've just all held hands and that's what keeps me going if we were like full process everything it would be a lot harder but we believe in that and that that's part of our dna makes it easy kind of well it's hard though isn't it because like you know you've got the benefit of being agile and just jumping on trends and deciding on what you're going to do but now you've got scale you've got retailers to keep in stock and you've got service levels to worry about and you've got lots you know you've got more activity than you can you know do yourself haven't you so it's a it's a very very different challenge i think that's sort of what a lot of founders really struggle with this bit isn't it is getting to that scale and transitioning from the you know startup doing itself to the big yeah i mean it's just it's absolutely not normal and i think that even the veteran leaders at our company they've never experienced what's happened either and so for them it's exciting and new learning opportunity, right?
39:45This is like a career, anyone that can work at Poppy, it is a career making job. I mean, when we post like a job, like if we'll need like a new designer, cause like on my team, I'm always like trying to find creatives. And I will say we're like best in class when it comes to creative and social force and all this, we'll put an ad up. We get like 10 to 20 ,000 resumes within like 24. I mean, it is so difficult to like weed through and do all of that. And it's very overwhelming with it. And it's culture is a huge piece. You know, at Poppy, we do a ton of culture surveys, internal surveys, you know, a lot of brand building, team building, like all of that stuff.
40:20So what do you look for in the people you hire? So what would what would what would you see in somebody to make you think they are a Poppy employee? I think self leadership ability to move quickly and not be dependent on your leader telling you. Right. I think that's a hard trait to finding people because I think in corporate jobs or bigger companies, you kind of just want people doing what they're told. Well, we might tell you do something and three hours later it's changed because we're moving so quick. So you have to be able to adapt, change and then not get stressed through that, but also be organized and get stuff done.
40:56It's almost what we call is this like unicorn of a person. It's almost like little entrepreneurs within Poppy that are highly specialized. You know, we're at the point where we do want like more specialized. It's not like I do everything like that's not sustainable. So we look for our little unicorn entrepreneurs that kind of can think and and be disruptive. And I always love my favorite ideas or my favorite campaigns. I've not I'm not the one that came up with them. Like we've had like people and brainstorms have come up with really fun ideas that were just like a new intern on the team or the new sales.
41:29Right. I think that that's a big part of what we look for. That does make a lot of sense. And it's quite rare to find that creativity combined with the ability to execute. It's those two things, isn't it, that is quite rare to find in people. Some people are great at following orders and getting stuff done. Some people are great at coming up with ideas and you need to kind of blend the two together. We're also like 70 percent female at Poppy, including our sales team. So in beverage, it's not super normal to have like a heavy female base. But since our brand just like screams that it's easy, our chief of sales is like a female.
42:01Right. So I think that piece as well as, you know, women get shit done. Yeah, that is true. That's very, very true. So looking back, what's been the hardest thing about this journey for you? Because it can't have been smooth sailing given the, you know, scale at which you've expanded. What's been the toughest bit? No, I think the toughest bit has been letting go kind of what I spoke to, but also seeing it grow and making sure it stays on brand. like I am so hardcore with is that on brand or is that not on brand and we're getting to the point where I can't I can't control it anymore and everybody I want everyone to be as intense as me when it comes to the brand because for long-term growth and success that is key so that's like what keeps me up at night that's my constant like north star is like everything through every lens is that on brand for poppy and if it's not we're not doing it even if it's the most insane amazing opportunity to be an XYZ party, this, whatever.
42:58But if it's like super off brand, we're not going to do it. And it's really hard, I think, to scale that. And that thinking after a while, people are like, oh, it's just this, it's fine. And then you're like showing up at really random places. And, you know, like for me, it's keeping the brand true. That's hard as well. Cause you, you know, you ooze it cause obviously it's your creation, you know, inside out, you know, exactly instinctively. But for someone new starting, they're not going to have that kind of awareness, are they? it becomes much much more difficult yeah so watching things change or not getting stressed out or freak out when i see stuff and retail of like some new distributor will design something and they'll put like cans on it that we discontinued four years ago and i'm just like just like what is going it's like seeing that stuff it's like okay calm down it's okay we'll talk to them they'll get you know whereas before i'd be like driving to that store to rip it down so um no it's been hard you know with that but it's just to me it comes down to all All that means to me is like, I'm still very passionate about the business and there's still a lot to do.
43:59And yeah, I'm excited to see it still grow. Now you're in a really, really unique position here. You know, as you said, probably the most fastest growing successful startup for independent startup in soft drinks. If you were starting something today, right here, right now, what would you do? Now, I don't mean in terms of like, what would you create? But what would be your advice to making something work? Yeah. So there's two things. I would 100 % recommend getting on TikTok today. I think a lot of brands think it has to be perfect or you have to have someone help you or an intern or someone else run it for you.
44:32I say like, hey, they're like, well, I don't know what the logo is going to look like. Get on and ask. Show the two logos. Have people vote. What color should I do? Like back in the day, if we were on white cans or colored cans, ask. Get on. And all that does is you might get two views. You could get 200 views, but look, I'm at 2 billion views, right? Like you kind of have to start somewhere. So that's always a really big piece of advice. And it's okay if you don't want to be the face of the company. There's so many ways you can get creative within it and just showing the product or having your employees do it or asking, you know, someone else that wants to do it.
45:05You can hire people now that will be like a face to your brand. I'm not even kidding you. So like, don't think that there's not a way. And then I think for me, a really big one is like, my favorite quote is like, if you get no, you're talking to the wrong person. so something that I've always learned is no is not always a bad thing and I know everyone's like oh sales that you know yeah we've heard this before um but you have to figure out a way to get the yes without bulldozing so I think if you can find a way to get your way kindly persuasive as a good leader is way more effective than trying to do it by bulldozing and just like telling people what to do so with with business it's like get on social never take no say yes and figure it out later and be kind along the way.
45:48That's a good tactic, actually, because everyone hates that stereotypical salesman type approach, which is just like badgering you constantly about why you should buy rather than kind of thinking about what the customer needs and how to get around their objections and think creatively. Find a way. Yeah, that's a good idea. Good advice. Well, listen, it's been absolutely brilliant talking to you. I thoroughly enjoyed this and it's really inspiring. I spent a lot of years in this category, and it's just amazing to see what you've done in a short space of time. Well, thanks for having me. Cheers.
46:14the future and here's hopefully to a few more uncensored cmo tiktoks because i've been getting a master class from the uh we're on it one herself so yeah so it's coming to a tiktok near you cheers thank you cheers thank you very much for listening or watching uncensored cmo i hope you enjoyed that if you did please do hit the subscribe button wherever you get your podcast if you're watching hit subscribe there as well i'd also love to get a review reviews make a big difference on other people discovering the show. So please do leave a review wherever you get your podcasts. If you want to contact me, you can do.
46:48I'm over on x at Uncensored CMO or on LinkedIn, where I'm under my own name, John Evans. Thanks for listening and watching. I'll see you next time.
From the publisher
In this episode I'm joined by Allison Ellsworth, founder of the fastest growing beverage brand in the US, Poppi.
Poppi was started as Mother Beverage in 2018 (a nod to the raw, unfiltered apple cider vinegar used in the drink) but was rebranded after featuring on Shark Tank in the same year. Now, it's one of the biggest soda brands in the US, outselling Coke and Pepsi on Amazon. I speak to Allison about the journey of creating the brand, how influential TikTok was for their growth, their merch strategy and how they ended up buying a Super Bowl ad. This is a fascinating account of how a challenger brand can disrupt an industry in such a small period of time.
Timestamps
00:00 - Intro
02:08 - Allison’s experience on Shark Tank
05:56 - Funding and rebrand of Poppi
10:36 - Launching the brand during COVID
11:06 - Outselling Coke and Pepsi on Amazon
12:33 - How big is the impact of Shark Tank
13:45 - Growing the brand on social media
17:02 - The influencer and social first marketing strategy
19:45 - How Poppi’s marketing popup worked
22:05 - Why Poppi invested in merch and launching in Target
24:36 - Choosing which flavours to launch with Poppi
28:04 - Approach to retail and growth
29:27 - Breaking into a competitive market
30:29 - Poppi’s Super Bowl campaign
35:30 - The journey from 2 to 200 employees
40:18 - How Allison hires at Poppi
42:05 - The hardest part of the journey at Poppi
44:07 - How Allison would start a new startup today
