I Bought A Drink Nobody Wanted (And Sold It For $2 Billion)
Executive Summary
My First Million episode 820, in which hosts Sam Parr and Shaan Puri talk with Rohan Oza, whom they call the brandfather, about his formula for building consumer brands that end in large exits. Rohan says he started only Poppi as a co-founder and otherwise bought into brands early, including Vitaminwater, Smartwater and others, and describes how he met the Poppi founders on Shark Tank, took 25 percent and helped bring in an operator CEO before an exit the hosts put above 2 billion dollars. His rules include influence the influencer, make the brand part of pop culture, spot winners early, and treating shelf space as the original algorithm. He also stresses that selling the company is a separate, low-repetition skill. Sponsors named in the description: HubSpot and the hosts' other products. PARTIAL COVERAGE: this note is based on the opening, the influence the influencer rule, the Poppi story, the founder versus operator discussion, the M&A and water sections and the closing, and may not cover every point in the roughly 63 minute video. Deal values, health claims about products and business views are the speakers' own and not independently checked. Nothing here is financial, investment or health advice.
Key Takeaways
Three things he does
Rohan says his work is spotting products early, building the brands and selling them.
Influence the influencer
He says one in 10 Americans influence the other nine, so the goal is to spot that one, which used to be radio DJs and is now social media figures.
Poppi on Shark Tank
He says the founders pitched a healthy drink after sharks spat out the product, and he took 25 percent despite a poor brand name.
Founder versus operator
He says a founder or creator mind does not always match an operator mind, so Poppi brought in a CEO at about 30 to 40 million dollars in revenue.
What you get out
He says it is not what you get in but what you get out at, and everyone got a great return because of the exit number.
Attainable premium
He says Poppi costs only cents more than a regular soda, so retailers see it as an attainable premium brand.
Selling water
He says Smartwater's vapor-distilled story and a redone package helped sell a commodity, and he sees the sale as a separate skill.
The Conversation Breakdown
Three things he does
⏱ Untimed topicRohan says his work is spotting products early, building the brands and selling them.
Influence the influencer
⏱ Untimed topicHe says one in 10 Americans influence the other nine, so the goal is to spot that one, which used to be radio DJs and is now social media figures.
Poppi on Shark Tank
⏱ Untimed topicHe says the founders pitched a healthy drink after sharks spat out the product, and he took 25 percent despite a poor brand name.
Founder versus operator
⏱ Untimed topicHe says a founder or creator mind does not always match an operator mind, so Poppi brought in a CEO at about 30 to 40 million dollars in revenue.
What you get out
⏱ Untimed topicHe says it is not what you get in but what you get out at, and everyone got a great return because of the exit number.
Attainable premium
⏱ Untimed topicHe says Poppi costs only cents more than a regular soda, so retailers see it as an attainable premium brand.
Selling water
⏱ Untimed topicHe says Smartwater's vapor-distilled story and a redone package helped sell a commodity, and he sees the sale as a separate skill.
Core Frameworks & Ideas
Influence the influencer - Rohan's rule
Find the one in ten who influences the other nine.
Live the brand - Rohan's hiring rule
Hire people who live the brand, not just market it.
Shelf space is the original algorithm - Rohan's line
Distribution and placement drive discovery.
Actionable Next Steps
- ✓Check the deal values and brand histories against press and company sources.
- ✓Work out who the one in ten influencers are for your own product and audience.
- ✓If you are a founder, think about whether an operator should run the company at scale.
- ✓Treat the business and health-related claims as the speakers' views, not advice.
Notable Quotes
“It's not really what you get in, it's what you get out at.”
“One in 10 Americans influence the other nine.”
“shelf space is the original algorithm”
The One Thing to Remember
The guest argues that influencing the right one in ten people, living the brand and treating the exit as its own skill are how simple consumer products reach multi-billion dollar outcomes.