PepsiCo’s $1.95 billion acquisition of Poppi soda stands as one of the most impressive success stories in the beverage industry. This deal has brought substantial returns to its star-studded roster of investors including NBA star Russell Westbrook, musician 24KGoldn and actress Olivia Munn. The acquisition has $300 million in predicted cash tax benefits.
The Breakdown You Need To Know:
NBA star Russell Westbrook and recording artist 24kGoldn became Poppi investors during a $13.5 million funding round in 2021. CultureBanx reported that this investment marked a significant growth phase for the prebiotic soda brand. The brand had been bootstrapped except for the original $400,000 investment from Shark Tank, where Guest Shark Rohan Oza, claimed 25% of the company. His original stake would now be worth about $487.5 million, an incredible 1,218× return on investment, USA Today reported.
Westbrook’s investment lined up with his portfolio of strategic collaborations in consumer brands. 24kGoldn joined other musicians like Halsey, the Chainsmokers, and Kygo who backed the functional beverage. These celebrities saw the brand’s unique position between wellness and cultural relevance.
Stephen Ellsworth, founder and CEO of Poppi, shared his enthusiasm at the time: “We’re really excited to have these new celebrity partners as an extension of our Poppi team – we have no doubt that they will play important roles in helping us scale awareness and grow our community as we continue to challenge big soda”.
Early Investment Rounds Drew Star Power:
PepsiCo’s strategic move targets the functional soda category, which has shown remarkable momentum with 465% year-over-year growth based on SPINS data. Poppi’s investor roster grew beyond musicians and athletes to include actors and social media personalities. Olivia Munn celebrated the acquisition on Instagram: “After my very first @drinkpoppi I called the founders and asked to be an early investor. What a ride”.
Other notable figures who backed the better-for-you beverage included:
- Ellie Goulding (musician)
- Kevin Love (NBA player)
- Nicole Scherzinger (performer)
- Chantel Jeffries, Bryce Hall, Noah Beck, Josh Richards, Griffin Johnson, and Blake Gray (social media influencers)
These celebrity investments proved valuable for everyone involved. Poppi gained brand awareness through authentic endorsements. In 2021, global superstar Jennifer Lopez shared her enthusiasm: “Poppi was my go-to soda on set while filming Cambia El Paso – tastes so good and good for you too!”
The investors’ gamble paid off when PepsiCo acquired the brand. PreInsighs reported that Poppi had captured 19% of the U.S. prebiotic soda market and generated over $500 million in sales in 2024.
Shark Tank Deal Speeds Up Growth:
The game-changing moment happened in 2018. Ellsworth, nine months pregnant, flew to Los Angeles to appear on Shark Tank. Mark Cuban and Kevin O’Leary passed on the deal, but the couple partnered with Rohan Oza, nicknamed “The Brandfather”. “We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy Poppi,” Oza later said about the acquisition.
After Shark Tank, they changed their strategy. Instead of building their own bottling plant, they worked with co-packers. The company rebranded from Mother Beverage to Poppi and switched from glass bottles to bright, attractive cans. Their presence grew to over 2,000 stores by 2020, including Walmart and Whole Foods.
A personal quest for better health turned into a trailblazing brand that reached over $100 million in annual revenue by 2023. The drink’s formula contains just five grams of sugar per serving with prebiotics and apple cider vinegar, making it a strong alternative to regular sodas.
Social Media Endorsements Drive Sales:
Poppi found gold on TikTok. The brand’s official #drinkpoppi hashtag got over 1 billion views. The platform’s strategic collaborations with creators led to “geographies at 80% higher rates to buy Poppi in-store”. These numbers proved that digital ads really affected retail sales.
Stars like Halsey, Russell Westbrook, Ellie Goulding, and Nicole Scherzinger shared the prebiotic soda on their social feeds, which created real connections with different audiences. Social media stars Bryce Hall, Chantel Jeffries, and Blake Gray helped the brand reach younger fans too.
Situational Awareness:
Russell Westbrook, 24kGoldn, and Olivia Munn played a key role in taking Poppi beyond regular beverage marketing. These stars who jumped in during later funding rounds also saw their money multiply. While the exact stakes each celebrity holds remain private, even small investments turned into major wins:
- Investors from the brand’s $13.5 million funding round in 2021 likely saw 144× returns on their money
- People who joined the $25 million Series B in 2023 could have earned around 78× returns
The deal also comes with “an additional potential earnout consideration subject to the achievement of certain performance milestones within a specified period after closing of the transaction”. This means shareholders who stay involved might see even bigger returns, according to PepsiCo.
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