Olipop valued at nearly $2B following latest funding round

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Dive Brief:

• Prebiotic soda brand Olipop is valued at $1.85 billion after raising $50 million in its latest funding round led by JP Morgan Private Capital’s Growth Equity Partners.
• The money will be used by Olipop to expand marketing, add flavors and increase availability in spaces traditionally dominated by legacy sodas.
• Healthier soda brands such as Olipop and competitor Poppi have surged in popularity as people look to curtail their sugar intake and increase their consumption of better-for-you products that contain functional ingredients.

Dive Insight:

Olipop, valued at just $200 million in 2022, has seen its valuation soar as consumers look for more in the products they drink.

Olipop is the top single-serve, non-alcoholic beverage manufacturer in dollar and unit growth, the company said, citing data from Circana and SPINS. Roughly half of its growth is from legacy carbonated soft drinks such as Pepsi and Coke, with the rest coming from new shoppers entering the category and current soda drinkers adding Olipop to their carts.

“It’s staggering and thrilling to have achieved a $1.85B valuation after just five to six short years in market,” Ben Goodwin, Olipop’s co-founder and CEO, said in a statement, adding it's “a testament to the innovation breakthroughs and momentum we have demonstrated as the founders of the modern soda category.” 

Olipop turned profitable in 2024, with sales doubling to $400 million year-over-year, according to the company. Goodwin told Bloomberg the latest funding round will advance innovation and help the brand enter into more retailers. 

Olipop is best known for its refrigerated sodas available in flavors like Cherry Vanilla, Banana Cream, Watermelon Lime and Vintage Cola. The company recently added a shelf-stable offering to its lineup, giving the functional beverage more space at retailers and enabling it to attract new consumers. Olipop reaches nearly 20% of U.S. households, the company said, providing it with a significant opportunity for growth.

The functional soda is sold at close to 50,000 grocers including Walmart, Target, Whole Foods, Kroger, Costco and Starbucks.

Olipop has positioned the brand as a healthier alternative to sugar-laden soda with 5 grams of the sweetener and fewer than 50 calories. The drink also contains prebiotic fiber that comes from chicory root, cassava root and Jerusalem artichoke to promote gut health. 

The presence of J.P. Morgan in the latest funding round will help promote the brand among investors and further its position as a profitable business. Olipop already has a lengthy list of celebrity investors, including the Jonas Brothers, Mindy Kaling and Gwyneth Paltrow, plus former PepsiCo CEO Indra Nooyi.

Goodwin told Bloomberg this will be the company’s last round of funding, but he hasn’t determined if he wants to take the company public or sell it to a larger entity. 

In addition to the latest funding round, Olipop appointed Mel Landis as its new president.

Landis, with more than 36 years of experience at business giants such as Coca-Cola and Kraft, will play a key role in growing the beverage maker. Landis is undoubtedly familiar with consumer trends and consumption habits, especially when it comes to sugary carbonated drinks.