Olipop, now in 50,000 stores, including Walmart and Starbucks, recently launched shelf-stable cans|@drinkolipop|X
Olipop, a prebiotic soda brand, announced yesterday it raised $50 million that valued the beverage brand at $1.85 billion in its latest funding round.
CEO Ben Goodwin said the brand remains profitable with triple-digit growth but is raising funds to expand product development, marketing and distribution. JP Morgan Private Capital led the round.
Olipop is famous among nonalcoholic American drinkers. The company claims its product supports gut health, with experts raising eyebrows as they are skeptical of its health claims.
Olipop fell short of its $500 million sales target last year, reaching $400–450 million, trailing competitor Poppi.
Founded in 2018, Olipop has expanded into 50,000 stores, including Walmart and Starbucks and recently launched shelf-stable cans. The company says the soda is a favorite among youngsters and claims that 1 in 4 Gen Zers go for the soda.
It previously raised $30 million in 2021 at a $200 million valuation. Investors include actress Gwyneth Paltrow, the Jonas Brothers and ex-PepsiCo CEO Indra Nooyi.
Meanwhile, Poppi has raised $39.3 million and topped $100 million in sales; it, too, faces a lawsuit over misleading health claims. Olipop’s valuation comes days after its rival faced criticism over its decision to send fully-stocked Poppi vending machines to influencers ahead of its $16 million Super Bowl ad.