Olipop, a prebiotic soda brand, recently raised $50 million in funding, valuing the company at $1.85 billion. Founded in 2018, Olipop has grown quickly, offering sodas that promote gut health. The company plans to use the new funds to expand its product range, marketing, and distribution.
Olipop is now the top nonalcoholic beverage brand in the U.S. and has reached nearly 20% of households. Flores like Cherry Vanilla and Vintage Cola provide a healthier alternative to regular sodas. The company became profitable in 2024 and continues to attract both consumers and investors.
What is Olipop?
Olipop is a prebiotic soda brand that offers a healthier alternative to traditional sugary soft drinks. It contains prebiotic fibre, low sugar, and fewer than 50 calories per can. The drink is designed to support gut health by using ingredients like chicory root, cassava root, and Jerusalem artichoke.
Founded in 2018, Olipop has quickly grown in popularity, becoming the top nonalcoholic beverage brand in the U.S. It is available in various flavours like Cherry Vanilla, Banana Cream, and Vintage Cola and is sold in major retailers like Walmart, Target, Whole Foods, and Costco.
Why is This Funding Significant?
Olipop’s latest $50 million Series C funding round, which values the company at $1.85 billion, is a major milestone in the growing prebiotic soda market. Just two years ago, Olipop was valued at $200 million, making this a remarkable leap. The funding, led by J.P. Morgan Private Capital’s Growth Equity Partners, will help the company expand its product lineup, marketing efforts, and distribution network.
This investment is significant because it highlights the rising demand for healthier soda alternatives. Olipop, which promotes gut health with prebiotic fibre and lower sugar, has gained a loyal customer base, including one in four Gen Z consumers. It is now the top nonalcoholic beverage brand in the U.S., available in nearly 50,000 stores like Walmart, Target, and Costco.
With its rapid growth, profitability in 2024 and strong retail presence, Olipop is solidifying its position as a major competitor in the beverage industry.
How Will the Funds Be Used?
Olipop plans to use the $50 million it raised in its latest funding round to expand product development, marketing, and distribution. The company is focused on introducing new flavours and product innovations, including shelf-stable offerings that will allow it to reach more consumers and secure more retail space.
A significant portion of the funds will also go toward expanding Olipop’s market reach. The brand is already available in nearly 50,000 stores, including Walmart, Target, Whole Foods, and Costco, but it aims to increase its retail presence even further.
Additionally, the funding will help Olipop boost its marketing efforts, ensuring it stays ahead of competitors like Poppi in the fast-growing prebiotic soda category. With celebrity investors and increasing consumer demand, Olipop is positioning itself as a strong alternative to traditional sugary sodas while continuing its rapid growth in the beverage industry.
Founders’ Perspective
Olipop’s founders, Ben Goodwin (CEO) and David Lester (Co-founder), view the company’s rapid growth and latest funding as a major milestone. Ben Goodwin expressed excitement about the brand’s success, stating:
“It’s staggering and thrilling to have achieved a $1.85B valuation after just five to six short years in the market.”
He credits this success to innovation and momentum in the prebiotic soda industry, calling Olipop the “founders of the modern soda category.”
Goodwin also emphasized the company’s strong financial position but noted that the funding will help expand product development, marketing, and distribution. In an interview with Bloomberg, he shared that this would likely be Olipop’s last funding round, but he has not yet decided whether to sell the company or take it public.
Their vision remains focused on redefining soda as a healthier alternative, attracting both health-conscious consumers and former traditional soda drinkers.
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Key Takeaways
- Massive Valuation Growth – Olipop is now valued at $1.85 billion, a huge jump from $200 million in 2022, showing rapid growth in the prebiotic soda market.
- $50 Million Series C Funding – Led by J.P. Morgan Private Capital’s Growth Equity Partners, the investment will help expand product development, marketing, and distribution.
- Rising Demand for Healthier Soda – With consumers shifting toward low-sugar, gut-friendly beverages, Olipop has become the top nonalcoholic beverage brand in the U.S.
- Retail Expansion – Available in nearly 50,000 stores like Walmart, Target, and Costco, Olipop plans to increase its market reach further.
- Profitability & Growth – The company turned profitable in 2024, with annual sales surpassing $400 million, doubling from the previous year.
Conclusion
Olipop’s rapid rise in the beverage industry showcases the growing demand for healthier soda alternatives. With a $1.85 billion valuation and $50 million in new funding, the company is set to expand its product lineup, marketing efforts, and retail presence. Having achieved profitability in 2024 and reaching nearly 50,000 stores, Olipop continues to attract consumers seeking low-sugar, gut-friendly drinks.
Looking ahead, the brand aims to drive further innovation and increase its market share, while also considering options for its long-term future, including a potential public offering or acquisition by a larger company.
The Soda That Loves Your Gut – Try Olipop and Feel the Difference!
