Prebiotic soda brand Olipop announced a $1.85 billion valuation following a $50 million funding round, led by J.P. Morgan Private Capital’s Growth Equity Partners. Founded in 2018, Olipop has seen significant growth in the prebiotic soda category alongside rival Poppi. Both brands have attracted consumers with claims of promoting gut health, a popular trend in the wellness industry.
Olipop plans to use the funding to expand its product lineup, marketing efforts, and distribution. The company has become the leading non-alcoholic beverage brand in the U.S., with half of its growth coming from legacy soda drinkers and the other half from new consumers entering the carbonated soft drink category. A quarter of Gen Z consumers reportedly drink Olipop.
Olipop reached profitability in early 2024, with annual sales exceeding $400 million, double that of the previous year. Co-founder and CEO Ben Goodwin has acknowledged interest from major soda giants PepsiCo and Coca-Cola in a potential sale. In comparison, Poppi, founded 10 years ago, has raised $39.3 million with annual sales surpassing $100 million in 2023.
Despite their success, Poppi has faced backlash over health claims, leading to a lawsuit settlement discussion. Poppi made its second consecutive appearance in a Super Bowl ad, showcasing the growing popularity and competition within the prebiotic soda market. Both Olipop and Poppi continue to innovate and expand their brands to meet consumer demand for healthier beverage options.
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