Poppi — The Company That Continues to Make Apple Cider Vinegar….Well, Drinkable
You may have seen the colorful, eye-catching cans as you stroll down the soft drink aisle. From appearances, you might assume they constitute another line of fruity-flavored carbonated beverages. You wouldn’t be wrong, but you’ll never guess what is lurking within these small, unassuming cans.
That’s right. It’s something that looks a little bit like this. It’s your health’s best friend and your taste buds’ greatest foe: apple cider vinegar.
Apple cider vinegar boasts a whole host of health benefits that continue to be studied in great detail. Some claim that apple cider vinegar helps manage diabetes and works to regulate blood sugar. Some studies show it may aid in weight loss and in digestion. It is thought to promote healthy vibrant skin and ward off dandruff. It’s no wonder people became crazy about this stuff.
Drinking apple cider vinegar became a craze back in 2018. It was the “thing” to drink. I remember starting my day with a tiny shot of it every morning. The only problem with that was that it was, quite literally, VERY hard to swallow and ill-feeling on the stomach. Vinegar is not the easiest thing going down, which makes this tonic something many of us dreaded ingesting.
So, there was a need. There was a need for an apple cider vinegar drink that would allow consumers to get the health-boosting benefits, while also enjoying the experience. This is where Poppi was born.
In this blog, I am going to walk-through Poppi’s new-product development process and demonstrate how their approach helped them sustain their growth after their initial success.
IDEA GENERATION
When Poppi hit the shelves in 2020 with their fruity flavored sodas, they were an “instant hit,” with “meteoric sales on Amazon” (Watson, 2020). Back when Poppi launched in 2020, it was “…a part of a new subcategory of the functional beverage set that was growing in the triple digits” (Watson, 2020). While “managing rapid growth is one of the better problems to have as a start-up,” it definitely presented some challenges, such as how to sustain the growth and how to innovate further (Watson, 2020). Poppi knew that it needed to branch out beyond its core flavor group — but how?
IDEAS FROM OTHER COMPANIES AND MARKETS
This is where leadership tuned into the market. They looked at what was already working. Pepsi, Coca-Cola, and Dr. Pepper have been around since the 1800s. Their popularity has stood the test of time. They are classics, well-revered, and coveted, however, these popular drinks have pitfalls. The regular sodas are chock-full of sugar, and the diet versions are full of artificial sweeteners.
Now, what if you could get the classic flavor you love in a drink that also aids digestion, boosts immunity, and keeps your heart healthy? Poppi set out to do this for us.
SCREENING
Lucky for the company, as they sought to launch new flavors, they already had the mold down pat. They had their branding, their packaging, and people were buying. The product has been backed by Shark Tank and they had numerous celebrity endorsements.
When deciding whether to pursue these classic flavors as a new area for growth, leadership would likely have evaluated the strengths, weaknesses, opportunities, and threats.
For strengths, these are popular, coveted flavors. People have been buying Coca-Cola, Pepsi, and Dr. Pepper products for over 100 years, and there is no evidence that this is going to slow down anytime soon.
For weaknesses, there is no certainty that people will opt for the new version of these classic favorites. People that like Pepsi are likely to stick with Pepsi. Poppi’s pricing will additionally be higher than the standard soda.
For opportunities, Poppi would have the ability to mesh the flavors people love, with the health benefits they need.
For threats, brands like Olipop and other functional beverages are pursuing similar strategies, and will likely steal share.
Leadership would also need to have screened for the return on investment. Now, Poppi has raised $27.3 million in total, $13.5 million on their last round alone (Shoup, 2021). Poppi is not a publicly-held company. Without record of how much funding was designated for product development alone, it is impossible for us to calculate the return on investment for the furthering of their drink portfolio, but it is certainly a calculation they considered. By moving forward with these flavors, it is clear they predicted a sufficient return on investment.
IDEA EVALUATION
I cannot find records for how Poppi further refined their idea. I would imagine they garnered customer feedback through concept testing, which might have included the culmination of focus groups or surveys of potential customers.
DEVELOPMENT
As Poppi largely had the model already developed and was selling through their inventory, I would imagine little further development had to be done at this stage. They likely would have been able to move quickly to…
COMMERCIALIZATION
…getting these new flavors on the shelves! Poppi already had a multitude of retail locations to roll these new flavors out to, in addition to their online store, and their presence on Amazon.
The new flavors have been a hit! Shape Magazine published an article on Poppi’s new foray into classic cola flavors, writing “And with craveable flavors that taste exactly like traditional sodas, you’ll actually *want* to take swig after swig — no motivational water bottle or “drink H2O” reminders required” (Falk, 2021). They remain sold out through their online store.
So, what exactly is the key to Poppi’s success?
A great idea, new product development, and sustainable growth are hallmarks of this company. And what has helped it to set itself apart from competitors?
Strong branding.
As Steven Ellsworth commented, “Whereas a lot of brands try to figure out branding as they go, we came out the gates really strong in March 2020” (Shoup, 2021).
Rohan Oza, nicknamed “ the Brandfather,” made a deal with the Ellsworths when they appeared on Shark Tank with their first design, “Mother Beverage” (Mainwaring, 2021). Oza took the Ellsworths through a complete redesign and rebranding of their product. This has helped them “…tap into that younger Gen Z and Millennial populations” (Mainwaring, 2021). Approaching marketing through Instagram, TikTok, and other popular social media sites aligned the brand with youth culture. Steven Ellsworth said about the strategic partnership with Oza and the success that has come from it, “It’s super important to know your personal limitations. Make sure you surround yourself with smart people that can assist in growing the business” (Mainwaring, 2021).
On the importance of building the right team, Steven Elsworth said, “In a hyper-competitive category and it’s making sure that you have the right team that can help navigate those tricky waters. It goes down to having a great product that stands on its own, then pairing it with a culturally relevant brand, and having the right management team to execute against those two” (Mainwaring, 2021).
Now, we all hold our breath and wait for what this powerhouse company has for us next!
References
Watson, E. (2020, December 8). Poppi ‘Prebiotic Soda’ Sales Skyrocket Following Brand Revamp: ‘It’s almost like a fashion statement, people want to be seen drinking it’. beveragedaily.com. June 14, 2022, https://www.beveragedaily.com/Article/2020/12/08/Poppi-prebiotic-soda-sales-skyrocket-following-brand-revamp-It-s-almost-like-a-fashion-statement-people-want-to-be-seen-drinking-it
Shoup, M. E. (2021, August 30). Poppi Closes $13.5m Funding Round Led by Cavu Ventures and Backed by Celebrity Investors: ‘Poppi is the modern soda for the next generation’. foodnavigator. June 14, 2022, https://www.foodnavigator-usa.com/Article/2021/08/30/Poppi-closes-13.5m-funding-round-led-by-celebrity-investors-Poppi-is-the-modern-soda-for-the-next-generation
Falk, M. (2021, April 21). This Healthy Soda Brand Just Released Low-Sugar Versions of Classic Flavors. Shape. June 14, 2022, https://www.shape.com/healthy-eating/healthy-drinks/poppi-classic-flavor-line-launch
Mainwaring, S. (2021, March 22). Purpose At Work: How Poppi Leverages Purpose to Bring Health to Soda. We First. June 14, 2022, https://wefirstbranding.com/purpose-at-work-how-poppi-leverages-purpose-to-bring-health-to-soda/