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.

Business Ideas of the Week

• Gummies are everywhere, you can make 5-10k THC gummies in three 8 hour shifts

• Wild is making refillable solid deoderant, I think someone should do the gel version and copy Method soap and ship the gel in packets

• Bread Zeppelin

• Smelling salts as a pre-set work out aid

• There was burials and cremation, next up is natural organic reduction…

• John Coogan was on My First Million and thought creators should start their own VPN, I think the play is to create a white label VPN for creators to sell

• Nicotine patches are taking off, Phillip Morris focused on the West Coast, if I was launching I would focus on the East Coast first

Business Success Stories of the Week

• $1 million from selling nut buttons

• Sleep gummies sell $45k/month across a five store test

• Deion Sanders sunglasses sell $1.2 million in a day

• Polish Rum company gets a ton of press by having a robot CEO

• New baseball bat is gaining traction in the MLB

• Someone made $20 million in profit last year buying funeral homes, recruiting from mortuary schools and increasing capacity

Other Interesting Items

• You can buy a 15 second time slots on a Times Square billboard for $150, marketing opportunity

• 3D backlit wall paintings… classy night light opportunity?