Draw a tall vertical rectangle. Switch to your area text tool. Click on the rectangle, and type in or paste your text. Select the entire object and rotate it this 90 degrees. These object >> envelope distort >> make with warp: arc 50%.
For this to look correct you will want your initial rectangle to be about 1/10th the width of the height (eg: 100 pts wide by 1000pts tall). This way the type won't look very distorted. The sample you gave appears to have a very small distortion to the type (the type is a little taller on the left (outside of circle) side than on the right).