Latest news with #AllisonEllsworth
Yahoo
23-03-2025
- Business
- Yahoo
Austin-based brands that have gone national
AUSTIN (KXAN) — Austin is a hub for music, tech — and a proving ground for businesses, some of which have expanded to have a national reach. Here's a look at the history of some Austin businesses that have expanded beyond the capitol city. Made in Texas: Viewers name the top Texas brands, businesses they love This week, PepsiCo announced it had bought the prebiotic soda brand for nearly $2 million. While the idea for the different take on soda started in Allison Ellsworth's Dallas kitchen in 2015 and was initially sold in farmer's markets, Poppi is headquartered in east Austin and available nationwide, according to its website. Founded in Austin in 2017 with the goal of creating 'better-tasting, better-for-you sparkling waters,' according to its website, Waterloo is now available nationwide. It's headquarters is in east Austin. Just two miles away is the site of another venture called Waterloo — a settlement on the banks of the Colorado River near what is now the Congress Avenue Bridge, according to the Texas State Historical Association. What was Austin called before it became 'Austin'? The Garza family (of seven) founded Siete in 2014 after developing grain-free Mexican-American food, prompted by one of their children's health challenges that required a change of diet. 'As a Mexican-American family from South Texas, the tacos and fajitas that we used to enjoy on tortillas just didn't taste the same on a lettuce leaf. So I began making grain free tortillas for my family, and they loved them,' Veronica Garza recounted on the Siete website. 'I knew we had something really special when my Grandma Campos told me that my tortillas tasted better than the homemade flour tortillas she'd made for decades!' The company, headquartered in South Austin, officially became part of PepsiCo in January of this year. Two Austin brothers developed the cooler brand 'out of frustration' after they saw other coolers couldn't 'last in the relentless Texas heat,' according to its website. It has since expanded its offerings to other outdoor gear, and is a sponsor of Austin's Major League Soccer team, Austin FC. Whole Foods' original 10,500 square foot store, founded in 1980 off of North Lamar Boulevard, no longer exists. But the current North Lamar store in downtonw Austin is still its headquarters, even after Amazon bought the company for $13.7 billion in 2017. The first store started with a staff of 19, which its website noted 'was quite large in comparison to the standard health food store of the time.' Where was the original Whole Foods Market in Austin? Alamo Drafthouse began when two movie buffs opened up a screen in downtown Austin. While it initially started with 'second run titles at discount rates,' within its first year it expanded to hosting film premieres, according to its website. Its headquarters is in central Austin. Sony acquired Alamo Drafthouse and its dozens of U.S. locations in 2024. Alamo Drafthouse theaters home to massive collection of film artifacts Michael Dell founded the company that would become Dell while he was studying at the University of Texas at Austin, eventually leaving to focus on the business, according to its website. The now multi-billion dollar company now has its headquarters in Round Rock. Founded in 1982 on Barton Springs Road, Chuy's had 'humble beginnings,' for its 'fun and funky Tex Mex restaurant,' according to its website. 'There was seating for about sixty, a women's restroom the size of a broom closet and a men's restroom that was, well, outside,' the website said. It opened its first restaurant outside Texas in 2009 and was bought by Darden Restaurants for $605M in 2024. Its home office just south of the river off Toomey Road. The now nationwide taco chain began first as a food truck in Austin (it still has a taco, filled with fried chicken and green chile, called 'trailer park.'). Torchy's headquarters is in east Austin. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
‘Functional soda' seen in rude health as PepsiCo takes plunge
If anyone needed convincing that, in the US at least, 'better-for-you' soda isn't a flash in the pan, perhaps PepsiCo's latest acquisition will have persuaded them. On Monday (17 March), just under 72 hours after Bloomberg reported PepsiCo was in late-stage talks to buy US prebiotic soda business Poppi, the US food and drinks giant announced a deal worth just under $2bn. Poppi, formerly known as Mother Beverage, was set up in 2015 and, after receiving funding on US business pitch TV show Shark Tank three years later, relaunched under its current brand in 2020. Since then, Poppi, co-founded by Allison Ellsworth and her husband Stephen, has built what has become one of the more recognisable names in the growing market for 'better-for-you' sodas in the US. Robert Moskow, a beverage-industry analyst at US investment bank TD Cowen, says Poppi generated sales of just over $391m in tracked channels in the last 52 weeks. A company spokesperson says Poppi ran up annual sales of 'north of $500m' in 2024. Alongside Olipop, Poppi, with its low-calorie and low-sugar sodas in 15 flavours, has become a brand synonymous with 'healthier' soda in the US. The purchase of Poppi is PepsiCo's second $1bn-plus acquisition in six months and the food-and-drinks major's latest attempt to tap into a growing part of the market through M&A. Speaking at the annual CAGNY investment conference last month, PepsiCo chairman and CEO Ramon Laguarta called out 'functionality' and 'multicultural' as two product trends that would be central to the company's investment strategy – and its recent deal-making underlines that thesis. In October, the Lay's snacks maker agreed to buy Mexican-American snacks maker Siete Foods for a fee of $1.2bn. 'More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,' Laguarta said on Monday. 'Poppi is a great complement to our portfolio transformation efforts to meet these needs.' After attending last week's Expo West trade show in California, Moskow highlighted better-for-you soda as an area the major players in conventional fizzy drinks needed to focus on. 'We believe carbonated soda leaders will need to take this segment of the market more seriously in 2025 rather than assuming it is a fad,' Moskow said at the time and, this week, he praised PepsiCo's move. 'We believe 'functional soda' is becoming a mainstream segment of the market with sustainable appeal,' he said on Monday. The transaction includes $300m of anticipated cash tax benefits for a net purchase price of $1.65bn, PepsiCo said. The deal also features an additional potential 'earnout consideration' based on whether certain undisclosed 'performance milestones' are reached, the company added. Barclays analyst Lauren Lieberman says the price tag works out at around four times Poppi's sales in the last 12 months, which, she says, 'strikes us as more akin to a beauty valuation'. However, Lieberman adds: 'We see a lot of similarities between the fast-growth, emerging brand landscape of each industry. Poppi boasts both scale and credibility with consumers (the latter of which really coming to light in our data work), which screens particularly attractive, in our view, when considering the path for an internal build would be long and uncertain.' Not all consumers have been happy, however. Poppi confirmed this week it had settled a lawsuit in the US filed by consumers who claimed they were misled by the company (Poppi said it 'acknowledges no fault, liability, or wrongdoing'). The settlement will allow Poppi and PepsiCo to look forward. For PepsiCo, it's a chance to buy into a burgeoning market and attempt to grow the brand further. The company had planned to launch a similar soda under its Soulboost brand (which hit the market four years ago with a range of sparkling waters including 'functional' ingredients like L-theanine and panax ginseng) but decided against the move (it's said the early indications for the new product were not positive) and pounced for Poppi instead. 'A frequent strategic dilemma when entering a new segment or category is whether to build or buy your way in,' David Clark, a former General Mills executive and founder of the Avenir Strategies consultancy, says. 'Buying typically involves paying a premium based on anticipated growth derived from past performance – the more solid the track record, the higher the premium. Building avoids this purchase premium but has a slow build and a high failure rate, circa 80%." Last month, Coca-Cola introduced its first prebiotic soda line, launching the Simply Pop brand in the US. Simply Pop, initially set to go on sale 'at retail in select regions' and via Amazon, is targeted at a product set that includes brands such as Poppi and Olipop. 'Of course, Coke may also be pursuing acquisitions ... but these initial moves suggest that Coke and Pepsi may see the BFY soda opportunity and urgency differently. It'll be interesting to see how this unfolds,' Clark says. Last month, Olipop was valued at $1.85bn after raising $50m in a Series C funding round, led by JP Morgan Private Capital's Growth Equity Partners. In 2023, CNBC quoted Ben Goodwin, Olipop's CEO, as saying PepsiCo and Coca-Cola had made an approach about a potential sale. Olipop said the new cash injection marked its 'final anticipated round of equity financing', after becoming profitable 'in early 2024'. The company, however, also confirmed that it fell short of its $500m sales target projected in May, generating over $400m in revenue for fiscal year 2024. 'The other big player in this space is Olipop and we fully expect them to get acquired by one of PepsiCo's rivals in the near term,' Richard Wyborn, a partner at UK-based consultancy Food Strategy Associates, says. 'Interest in prebiotics and gut health isn't going anywhere and is a trend we expect to appear in more and more categories in the future.' In the main, PepsiCo's acquisition of Poppi is seen by industry watchers as a deal that could benefit both sides. PepsiCo has snapped up a significant player in a buoyant product segment – and a segment that's expected to continue to grow. Meanwhile, Poppi gets the benefit of PepsiCo's distribution muscle. It wouldn't be a massive surprise if we saw, perhaps with some tweaks to recipes and flavours, Poppi products in more international markets in the months ahead. 'They need to ensure they let management continue to do what they've been doing – if it ain't broke don't fix it – but also ensure that they don't turbo charge the growth too much,' Wyborn says. 'Distribution should be built up gradually all the while ensuring velocities remain high.' However, not everyone is sold on the prospects for such functional sodas. PepsiCo's scale will undoubtedly help Poppi in the medium term and this type of bolt-on acquisition has delivered the best ROI in the FMCG industry. However, I remain sceptical about the long-term viability of these sodas,' Ivan Torossian, a consulting director at GlobalData, Just Drinks' parent, says. 'At $2.5–$3 per can, Poppi lacks the 'instant gratification' factor. Red Bull gives you instant wings and electrolyte beverages instant hydration but prebiotics? Consumers too concerned with sugar and gut might as well stick to water for a quarter of the cost. Is there really enough differentiation to sustain Poppi's positioning?' "'Functional soda' seen in rude health as PepsiCo takes plunge" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
21-03-2025
- Business
- Yahoo
‘Functional soda' seen in rude health as PepsiCo takes plunge
If anyone needed convincing that, in the US at least, 'better-for-you' soda isn't a flash in the pan, perhaps PepsiCo's latest acquisition will have persuaded them. On Monday (17 March), just under 72 hours after Bloomberg reported PepsiCo was in late-stage talks to buy US prebiotic soda business Poppi, the US food and drinks giant announced a deal worth just under $2bn. Poppi, formerly known as Mother Beverage, was set up in 2015 and, after receiving funding on US business pitch TV show Shark Tank three years later, relaunched under its current brand in 2020. Since then, Poppi, co-founded by Allison Ellsworth and her husband Stephen, has built what has become one of the more recognisable names in the growing market for 'better-for-you' sodas in the US. Robert Moskow, a beverage-industry analyst at US investment bank TD Cowen, says Poppi generated sales of just over $391m in tracked channels in the last 52 weeks. A company spokesperson says Poppi ran up annual sales of 'north of $500m' in 2024. Alongside Olipop, Poppi, with its low-calorie and low-sugar sodas in 15 flavours, has become a brand synonymous with 'healthier' soda in the US. The purchase of Poppi is PepsiCo's second $1bn-plus acquisition in six months and the food-and-drinks major's latest attempt to tap into a growing part of the market through M&A. Speaking at the annual CAGNY investment conference last month, PepsiCo chairman and CEO Ramon Laguarta called out 'functionality' and 'multicultural' as two product trends that would be central to the company's investment strategy – and its recent deal-making underlines that thesis. In October, the Lay's snacks maker agreed to buy Mexican-American snacks maker Siete Foods for a fee of $1.2bn. 'More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,' Laguarta said on Monday. 'Poppi is a great complement to our portfolio transformation efforts to meet these needs.' After attending last week's Expo West trade show in California, Moskow highlighted better-for-you soda as an area the major players in conventional fizzy drinks needed to focus on. 'We believe carbonated soda leaders will need to take this segment of the market more seriously in 2025 rather than assuming it is a fad,' Moskow said at the time and, this week, he praised PepsiCo's move. 'We believe 'functional soda' is becoming a mainstream segment of the market with sustainable appeal,' he said on Monday. The transaction includes $300m of anticipated cash tax benefits for a net purchase price of $1.65bn, PepsiCo said. The deal also features an additional potential 'earnout consideration' based on whether certain undisclosed 'performance milestones' are reached, the company added. Barclays analyst Lauren Lieberman says the price tag works out at around four times Poppi's sales in the last 12 months, which, she says, 'strikes us as more akin to a beauty valuation'. However, Lieberman adds: 'We see a lot of similarities between the fast-growth, emerging brand landscape of each industry. Poppi boasts both scale and credibility with consumers (the latter of which really coming to light in our data work), which screens particularly attractive, in our view, when considering the path for an internal build would be long and uncertain.' Not all consumers have been happy, however. Poppi confirmed this week it had settled a lawsuit in the US filed by consumers who claimed they were misled by the company (Poppi said it 'acknowledges no fault, liability, or wrongdoing'). The settlement will allow Poppi and PepsiCo to look forward. For PepsiCo, it's a chance to buy into a burgeoning market and attempt to grow the brand further. The company had planned to launch a similar soda under its Soulboost brand (which hit the market four years ago with a range of sparkling waters including 'functional' ingredients like L-theanine and panax ginseng) but decided against the move (it's said the early indications for the new product were not positive) and pounced for Poppi instead. 'A frequent strategic dilemma when entering a new segment or category is whether to build or buy your way in,' David Clark, a former General Mills executive and founder of the Avenir Strategies consultancy, says. 'Buying typically involves paying a premium based on anticipated growth derived from past performance – the more solid the track record, the higher the premium. Building avoids this purchase premium but has a slow build and a high failure rate, circa 80%." Last month, Coca-Cola introduced its first prebiotic soda line, launching the Simply Pop brand in the US. Simply Pop, initially set to go on sale 'at retail in select regions' and via Amazon, is targeted at a product set that includes brands such as Poppi and Olipop. 'Of course, Coke may also be pursuing acquisitions ... but these initial moves suggest that Coke and Pepsi may see the BFY soda opportunity and urgency differently. It'll be interesting to see how this unfolds,' Clark says. Last month, Olipop was valued at $1.85bn after raising $50m in a Series C funding round, led by JP Morgan Private Capital's Growth Equity Partners. In 2023, CNBC quoted Ben Goodwin, Olipop's CEO, as saying PepsiCo and Coca-Cola had made an approach about a potential sale. Olipop said the new cash injection marked its 'final anticipated round of equity financing', after becoming profitable 'in early 2024'. The company, however, also confirmed that it fell short of its $500m sales target projected in May, generating over $400m in revenue for fiscal year 2024. 'The other big player in this space is Olipop and we fully expect them to get acquired by one of PepsiCo's rivals in the near term,' Richard Wyborn, a partner at UK-based consultancy Food Strategy Associates, says. 'Interest in prebiotics and gut health isn't going anywhere and is a trend we expect to appear in more and more categories in the future.' In the main, PepsiCo's acquisition of Poppi is seen by industry watchers as a deal that could benefit both sides. PepsiCo has snapped up a significant player in a buoyant product segment – and a segment that's expected to continue to grow. Meanwhile, Poppi gets the benefit of PepsiCo's distribution muscle. It wouldn't be a massive surprise if we saw, perhaps with some tweaks to recipes and flavours, Poppi products in more international markets in the months ahead. 'They need to ensure they let management continue to do what they've been doing – if it ain't broke don't fix it – but also ensure that they don't turbo charge the growth too much,' Wyborn says. 'Distribution should be built up gradually all the while ensuring velocities remain high.' However, not everyone is sold on the prospects for such functional sodas. PepsiCo's scale will undoubtedly help Poppi in the medium term and this type of bolt-on acquisition has delivered the best ROI in the FMCG industry. However, I remain sceptical about the long-term viability of these sodas,' Ivan Torossian, a consulting director at GlobalData, Just Drinks' parent, says. 'At $2.5–$3 per can, Poppi lacks the 'instant gratification' factor. Red Bull gives you instant wings and electrolyte beverages instant hydration but prebiotics? Consumers too concerned with sugar and gut might as well stick to water for a quarter of the cost. Is there really enough differentiation to sustain Poppi's positioning?' "'Functional soda' seen in rude health as PepsiCo takes plunge" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Independent
18-03-2025
- Business
- The Independent
PepsiCo buys prebiotic soda brand Poppi for $1.95 billion
PepsiCo has acquired prebiotic soda brand Poppi for $1.95 billion. Poppi - which took off in 2018 when co-founder Allison Ellsworth and her husband pitched it on Shark Tank - is the fast-growing brand in the popular functional beverage category. PepsiCo said the transaction includes $300 million of anticipated cash benefits, bringing the net purchase price to $1.65 billion. 'More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,' PepsiCo Chairman and CEO Ramon Laguarta said. Ellsworth said the combination with PepsiCo will expand Poppi's reach. 'We can't wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation,' she said in a statement. Ellsworth developed Austin, Texas-based Poppi – then known as Mother Beverage - in her kitchen in 2015 because she loved soda but was tired of the way it made her feel. She mixed fruit juices with apple cider vinegar, sparkling water and prebiotics and sold the drink at farmer's markets. After a successful pitch on Shark Tank, investor Rohan Oza, took a stake in Mother Beverage and undertook a major rebrand. Poppi, with its brightly-colored, fruit-forward cans, was born. 'We're beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy Poppi,' said Oza, the co-founder CAVU Consumer Partners, which has also invested in beverage brands like Oatly and Bai. But it hasn't all been smooth sailing for Poppi. Last summer, multiple class-action lawsuits were filed against the brand by consumers who said its products don't improve gut health as much as their marketing suggests. Poppi denied those claims, and noted that it removed references to 'gut health' from its packaging in late 2023. But according to a court filing last week, Poppi has agreed to a settlement that includes an $8.9 million fund for payments to consumers. A hearing on the settlement is scheduled for May 8. PepsiCo shares rose nearly two percent in morning trading on Monday.
Express Tribune
18-03-2025
- Business
- Express Tribune
PepsiCo buys Poppi for $1.95B to gain foothold in functional drinks
Listen to article PepsiCo (PEP.O) announced its acquisition of Poppi, a prebiotic soda brand, for $1.95 billion, as the company seeks to strengthen its position in the growing "healthier soda" category. The deal comes as PepsiCo faces declining demand for its traditional sodas and snack products. Following the announcement, PepsiCo's shares rose 1.6% in early trading. The move signals PepsiCo's strategic push into the health-conscious beverage market, a segment where young consumers are increasingly favoring functional drinks over conventional sodas. Healthier beverages on the rise Consumers, particularly young Americans, are turning to healthier sodas and energy drinks, driving beverage giants to innovate. Rival Coca-Cola (KO.N) has expanded its Simply brand to introduce a prebiotic soda called "Simply Pop". Other players, including Celsius Holdings (CELH.O) and Keurig Dr Pepper (KDP.O), have also made investments in the wellness drinks market. PepsiCo's acquisition of Poppi is aimed at bolstering its presence in the prebiotic soda market, a subcategory of carbonated soft drinks (CSD) that is experiencing rapid growth. Prebiotic sodas contain beneficial ingredients that support gut health, an emerging consumer trend. The Poppi advantage Poppi, an Austin, Texas-based brand, has gained traction in recent years. The company reported a 122% increase in retail sales in the 12 weeks leading up to February 22, now holding about 1% of the total US carbonated soft drinks market, according to BNP Paribas. PepsiCo emphasized that Poppi's formulation—a mix of prebiotics, fruit juice, and apple cider vinegar—makes it a low-calorie soda with no more than five grams of sugar per serving. J.P. Morgan analyst Andrea Teixeira noted that the deal would help PepsiCo strengthen its CSD portfolio, which has lost market share to Coca-Cola and Keurig Dr Pepper in recent years. Poppi's journey: from Shark Tank to PepsiCo Founded by Stephen and Allison Ellsworth, Poppi was originally known as Mother Beverage before its rebranding in 2020. The couple pitched their soda on Shark Tank in 2018, securing the backing of investor Rohan Oza, co-founder of CAVU Consumer Partners. Oza played a key role in rebranding Poppi, giving it its signature brightly colored, fruit-forward cans, and expanding its retail presence. 'We're beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy Poppi,' said Rohan Oza. Financial terms of the deal PepsiCo disclosed that the $1.95 billion acquisition includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion. The company did not reveal additional financial details of the agreement. Allison Ellsworth: excited for the next chapter Poppi's co-founder Allison Ellsworth expressed enthusiasm about the deal, highlighting that PepsiCo's global distribution would help expand Poppi's reach. 'We can't wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation,' she said. Ellsworth first developed Poppi in 2015 in her kitchen as a healthier soda alternative. She experimented with fruit juices, apple cider vinegar, sparkling water, and prebiotics, selling her creations at local farmer's markets before gaining national recognition. Legal challenges: class-action lawsuit settlement Despite Poppi's rapid success, the company has faced legal challenges. Last summer, multiple class-action lawsuits were filed against the brand, alleging that its products did not provide the gut health benefits promised in marketing materials. Poppi denied the allegations but agreed to remove references to 'gut health' from its packaging in late 2023. According to a court filing last week, Poppi has agreed to an $8.9 million settlement fund for affected consumers. A hearing on the settlement is scheduled for May 8. PepsiCo strengthens functional beverage portfolio The acquisition of Poppi aligns with PepsiCo's broader strategy to diversify its product offerings beyond traditional sodas. As rising prices continue to impact demand for Pepsi sodas and Lay's snacks, the company is investing in fast-growing health and wellness segments. With consumers shifting toward functional beverages, PepsiCo is positioning itself to compete with emerging brands and long-standing rivals like Coca-Cola.
