Olipop: The Multi-Million Dollar Soda Revolution
For over a decade, Ben Goodwin and David Lester embarked on a mission to create a delicious, gut-healthy, fiber-rich, and low-sugar soda. In 2018, their vision materialised with the launch of Olipop, a prebiotic soda made with eight plant-based ingredients aimed at supporting digestive health. Despite starting with just 40 grocery stores in Northern California and a gross revenue of $852,000 in its first year, Olipop has grown exponentially. By 2022, the company reported a gross revenue of $73.4 million, and it is projected to surpass $200 million in sales by the end of 2023.
Identifying a New Opportunity
In 2005, inspired by a book on Clif Bar’s founding, Ben Goodwin shifted his career focus to nutrition, leaving college to start a kombucha company. Meanwhile, David Lester originally worked nearly a decade at the spirits giant Diageo before seeking a change from corporate life. Their paths crossed through a mutual connection, leading to a partnership to launch Obi, a probiotic soda that didn’t gain the traction they hoped for.
Undeterred, Ben and David used their learnings from Obi to develop Olipop, drawing on emerging research around the gut microbiome and metabolic health. With a $100,000 investment from selling Obi, they dedicated $70,000 to branding and $30,000 to perfecting the soda's formula. Despite skepticism from investors, they pushed forward, confident that the declining soda market presented an opportunity for innovation.
Creating a Unique Product in a Competitive Market
Olipop’s formulation process was centered on creating flavors that mirrored iconic soda brands but with a healthier profile. Each can of Olipop contains only 2-5 grams of sugar, significantly less than the 39 grams found in many popular sodas, along with nine grams of fiber. The name “Olipop” cleverly combines regional terms for soda—“pop” in the Midwest and “soda” on the coasts—with a nod to oligosaccharides, a group of prebiotic fibers.
Launching Olipop was no easy feat. Ben and David faced challenges in securing distribution, needing to pre-sell their products to stores to attract a distributor. Their efforts paid off, and by early 2019, Olipop launched in 40 health food stores in Northern California with flavors like Ginger, Strawberry Vanilla, and Vintage Cola. By 2020, Olipop's revenue had reached $8.6 million, climbing to $29.7 million in 2021 as its popularity soared.
Growth and Recognition
Olipop's rapid growth continued with a $39.7 million Series B funding round in early 2022, attracting high-profile investors. The funds were allocated to brand growth and expanding the team. By 2022, Olipop was competing alongside industry giants like A&W and Pepsi.
In 2023, a strong following among Gen Z and millennials on platforms like Instagram and TikTok fueled its visibility, with countless posts and recipes featuring Olipop. In the first half of 2023 alone, the brand generated approximately $100 million in revenue.
The Future of Olipop
Olipop has expanded from selling in 40 stores to over 23,000 across the U.S., with plans to reach 30,000 by the end of 2023. Despite their rapid ascent, Ben and David attribute their success to lessons learned from past ventures, staying committed to their mission, and the dedication of their growing team of over 100 employees. With continued research and flavor development, Olipop aims to maintain its momentum, with ambitions of eventually surpassing $1 billion in sales.