Dive Brief:
- Prebiotic soda brand Olipop is now valued at $1.85 billion after securing $50 million in its latest funding round led by JP Morgan Private Capital’s Growth Equity Partners.
- The funding will be utilized by Olipop to expand its marketing efforts, introduce new flavors, and enhance its availability in markets traditionally dominated by legacy soda brands.
- Health-conscious soda brands like Olipop and competitor Poppi have experienced a surge in popularity as consumers seek to reduce their sugar consumption and opt for better-for-you products containing functional ingredients.
Dive Insight:
Olipop, which was valued at just $200 million in 2022, has witnessed a remarkable increase in valuation as consumers demand more from the beverages they consume.
Olipop has emerged as the leading single-serve, non-alcoholic beverage manufacturer in terms of both dollar and unit growth, according to data from Circana and SPINS. Approximately half of its growth comes from traditional carbonated soft drink consumers, with the remaining portion from new market entrants and existing soda drinkers integrating Olipop into their consumption habits.
Ben Goodwin, Olipop’s co-founder and CEO, expressed excitement about achieving a $1.85 billion valuation within a short span of five to six years in the market. The company turned profitable in 2024, doubling its sales to $400 million year-over-year.
The latest funding round aims to drive innovation and expand Olipop’s presence in more retail outlets. The brand’s offerings include refrigerated sodas in flavors like Cherry Vanilla, Banana Cream, Watermelon Lime, and Vintage Cola, with a recent addition of shelf-stable options to attract a broader consumer base.
Olipop’s products, with only 5 grams of sweetener and fewer than 50 calories, offer a healthier alternative to traditional sugary sodas. The inclusion of prebiotic fiber from chicory root, cassava root, and Jerusalem artichoke promotes gut health.
The participation of J.P. Morgan in the funding round will further elevate Olipop’s standing among investors, building on its existing list of celebrity investors and industry veterans. Goodwin hinted at the possibility of taking the company public or considering acquisition following this funding round.
In addition to the funding, Olipop has appointed Mel Landis, a seasoned executive with experience at companies like Coca-Cola and Kraft, as its new president. Landis’ expertise in consumer trends and beverage consumption habits is expected to drive Olipop’s growth trajectory.
