Prebiotic Soda Brand Olipop Valued At $1.85b

Amid the horde of upstart beverage brands desperately vying to occupy the third coaster on your desk, Olipop has squirmed into many consumers’ rotations. The prebiotic soda brand announced yesterday that it was valued at $1.85 billion in its recent $50 million funding round.

Olipop, which started seven years ago, has dominated the nonalcoholic US drink market with its claim that it supports gut health. Some experts are skeptical of the health claims from Olipop and its rivals. The company cites its ability to capture the tastebuds of the youth for much of its success, saying 1 in 4 Gen Zers drink its bubbly beverage:

• Olipop says half of its growth comes from legacy soda drinkers, and the other half is thanks to people new to the soft drink category.
• In 2023, Olipop founder and CEO Ben Goodwin told CNBC that he had received offers from PepsiCo and Coca-Cola to buy the company.

Now it’s on a roll. News of the unicorn valuation comes just days after Olipop’s main rival, Poppi, caught massive blowback on TikTok for its $16 million Super Bowl ad and marketing stunt, which entailed sending fully stocked Poppi vending machines to influencers. Critics called it wasteful and out of touch.

Olipop, which made a celebrated foray into sports marketing last year, hopped in the comments section of the Poppi drama, suggesting that the vending machines cost $25,000 each.—MM