Olipop: A Functional Beverage Takes Off
Ben Goodwin and David Lester’s success started with failure. Ben had a probiotic soda company, Obi, and in 2013 David joined. But it didn’t take off and was sold for an undisclosed amount in 2016.
By 2018 they were ready to try their luck again and started Olipop with a $100,000 investment.
Olipop is a prebiotic soda. But the biggest difference is it only has 2-5 grams of sugar per can compared to 39 grams in an average soda. It also packs in 9 grams of fiber.
This is a great Blue Ocean play where on one end of the spectrum you have sparkling water and on the other end you have traditional soda. Ben and David found a spot on that line, a little more flavorful and sugary than sparkling water, but far from the unhealthy traditional soda options on the other end.
They launched with Strawberry Vanilla, Cinnamon Cola and Ginger Lemon.
Sales took off! In the first year they were in 40 grocery stores and sold $852,000.
2020 - $8.6 million
2021 - $29.7 million
2022 - $73.4 million
In February 2022 they raised a $30 million Series B with celebrity investors Camila Cabello, Gwyneth Paltrow, the Jonas brothers and others at a $200 million valuation.
And in 2023 they now have 100 employees, are in over 23,000 stores and are on track for $200 million in sales.
Ben recalls that most investors said the idea of a healthy soda was stupid. Let alone a soda that costs $2.50… But it worked.
Great summary video below.
Other functional beverage companies have worked as well.
Morning Recovery, a pre-drink shot to help you recover from a night of drinking, launched in 2017 and reached $30 million in sales when the founder transtioned to a board role.
Sota, a sparkling organic tea with adaptogens, just landed in Costco (Canada). It challenges sparkling water by actually telling you exactly what is creating the flavor. Not just “natural flavors".
And maybe in the not too functional after drinking beverage category, Brez, a micro dose cannabis/mushroom beverage, recently launched and shared that they sold over $10,000 on Sept. 15, 2023. And a few days later shared that they had their first $100k/month.
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