For years, venture capitalists have been skeptical of beverage startups, citing thin margins and brutal distribution as reasons most brands never break out. But a new wave of “functional soda” companies has been challenging that assumption, including Poppi, the prebiotic soda brand that grew from a kitchen experiment into a $1.95 billion acquisition by PepsiCo.

On this episode of TechCrunch’s Equity podcast, Rebecca Bellan is joined by Poppi co-founder Allison Ellsworth to talk about building a beverage startup in a venture world dominated by SaaS and AI. From pitching on Shark Tank while nine months pregnant to scaling a digital-first brand during COVID, and now returning as a Shark herself, Ellsworth shares how social media, fast marketing bets, and customer feedback helped turn a niche drink into a category-defining company.

Listen to the full episode to hear about:

Ellsworth’s Shark Tank return, and how she evaluates founders on the other side of the pitch.

How Ellsworth turned a personal health issue into Poppi and built early traction at farmers' markets.

Why TikTok and community-driven marketing helped the brand rack up billions of views and loyal fans.

The risky decision to buy a last-minute Super Bowl ad, and how the team executed it in days.

What it’s like selling a startup to PepsiCo while trying to preserve the brand’s identity.

Why beverage startups almost inevitably need acquisition-level distribution to scale.

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How Poppi went from a Shark Tank pitch to a $1.95B exit