Billions in the Bubbles

Brand Breakdown 📈

How a Homemade Soda Just Became a Billion-Dollar Brand

Last week, Poppi was all over the news.

PepsiCo is reportedly in talks to acquire the prebiotic soda brand for over $1.5 billion - a massive payday for a company that started in a Texas kitchen.

But how did Poppi go from a homemade health remedy to one of the hottest beverage brands on the market?

It all started with apple cider vinegar.

In 2015, Allison Ellsworth was struggling with health issues. She began drinking ACV daily, but there was one problem.. it tasted awful.

So she started experimenting. Mixing vinegar with fruit juices, carbonating it, and testing flavors in her Dallas kitchen. What started as a personal remedy turned into something people actually wanted to drink.

At first, it was just a farmers market hustle. Allison and her husband, Stephen, sold their fizzy, gut-friendly drinks (then called Mother Beverage) wherever they could.

One day, a Whole Foods buyer tried it and saw potential. They got their first retail break.

Then came the moment that changed everything: Shark Tank.

Allison was nine months pregnant when she pitched the brand to the Sharks in 2018. Rohan Oza (known for backing brands like Bai and Vitaminwater) invested $400,000 and helped rebrand it to Poppi.

But even with the fresh look, their biggest test was still ahead.. COVID.

Traditional retail took a hit. Distribution stalled and Poppi had to pivot.

That’s when Allison turned to TikTok.

She started posting videos sharing her story, explaining the benefits of prebiotics, and making Poppi fun. Then, one blew up. Overnight, they did $100,000 in sales.

Poppi rode that momentum into major retail expansion. Whole Foods. Target. Costco. Walmart.

Celebrities took notice. Hailey Bieber, Kylie Jenner, Jennifer Lopez, Poppi became an it-drink, not just a health drink.

By 2023, sales had soared past $100 million, and Poppi had secured a dominant spot in the better-for-you beverage market.

Now, PepsiCo is circling with a $1.5 billion+ offer.

A brand that started in a Dallas kitchen, was built on TikTok and retail hustle, and nearly collapsed during COVID is now poised to join the soda giants.

Poppi didn’t just redefine soda - they made gut health cool.

Money Moves 💰

InvestBev's $100M Bet on Bourbon

InvestBev, a private equity firm specializing in the adult beverage industry, has partnered with a global asset manager to invest up to $100M in Kentucky bourbon barrels.

The plan is to acquire barrels under five years old, hold them until maturity, and capitalize on long-term appreciation.

• Premium bourbon collections have appreciated 15-20% annually.

• Limited edition releases have seen up to 200% value increases over five years.

• InvestBev continues expanding in premium spirits, adding bourbon to a portfolio that includes JuneShine, Renais, and Sèchey.

This move signals that institutional capital is now paying attention to bourbon as an alternative asset class. As bourbon ages, so does its value.

Insight of the Week 💡

MrBeast Now Makes More Money from Selling Chocolate Than YouTube

MrBeast’s company, Beast Industries, is majority owner of Feastables, which generated $250M in sales last year and turned a $20M profit - while his YouTube and media business posted similar revenue but lost nearly $80M.

Beast Industries has raised $450M+ over the past four years, with its latest valuation hitting $5B.

Yahoo Finance