Prebiotic soda model Olipop stated Wednesday that it was valued at $1.85 billion in its newest funding spherical, which raised $50 million for the corporate.
Based in 2018, Olipop has helped gas the expansion of the prebiotic soda class, together with rival Poppi, which highlighted its drinks with a Tremendous Bowl advert on Sunday. Each have attracted customers with their claims that their drinks assist with “intestine well being,” one of many newest wellness tendencies taking up meals and beverage aisles.
Olipop’s Collection C funding spherical was led by J.P. Morgan Non-public Capital’s Development Fairness Companions. The corporate plans to make use of the cash that it raised so as to add to its product lineup, broaden its advertising and distribute its sodas extra broadly.
Right now, Olipop is the highest non-alcoholic beverage model within the U.S., each by greenback gross sales and unit progress, the corporate stated, citing information from Circana/SPINS. Roughly half of its progress comes from legacy soda drinkers, whereas the opposite half comes from customers coming into the carbonated mushy drink class. One in 4 Gen Z customers drinks Olipop, in keeping with the corporate.
In early 2024, Olipop reached profitability, the corporate stated. Its annual gross sales surpassed $400 million final yr, doubling the yr prior. In 2023, Olipop founder and CEO Ben Goodwin informed CNBC that soda giants PepsiCo and Coca-Cola had already come knocking a couple of potential sale.
For its half, rival Poppi, which was based 10 years in the past, has raised $39.3 million as of 2023 at an undisclosed valuation, in keeping with Pitchbook information. Poppi’s annual gross sales reportedly crossed $100 million in 2023. Its look in the course of the Tremendous Bowl was the second straight yr that it paid for an advert in the course of the huge sport.
Poppi has additionally confronted some backlash for its well being claims. The corporate is at present in talks to settle a lawsuit that argued that Poppi’s drinks aren’t as wholesome as the corporate claims, in keeping with courtroom filings.