Olipop Prebiotic Soda Valued at $1.85 Billion in Funding Round

Super Bowl Ad of Poppi

Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.

Rise of Prebiotic Soda Brands

Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, alongside rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday. Both have attracted consumers with their claims that their drinks help with "gut health," one of the latest wellness trends taking over food and beverage aisles.

Olipop’s Funding and Plans

Olipop’s Series C funding round was led by J.P. Morgan Private Capital’s Growth Equity Partners. The company plans to use the money it raised to add to its product lineup, expand its marketing, and distribute its sodas more widely.

Success of Olipop

Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS. Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category. One in four Gen Z consumers drinks Olipop, according to the company.

Poppi’s Funding and Controversies

For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data. Poppi’s annual sales reportedly crossed $100 million in 2023. Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game. However, Poppi has also faced some backlash for its health claims. The company is currently in talks to settle a lawsuit that argued Poppi’s drinks are not as healthy as the company claims, according to court filings.

Conclusion

The rise of prebiotic soda brands like Olipop and Poppi is a testament to the growing demand for healthier beverage options. With their innovative products and aggressive marketing strategies, these companies are redefining the soda category and attracting a new generation of consumers.

FAQs

Q: What is the valuation of Olipop?
A: Olipop is valued at $1.85 billion.

Q: How much funding did Olipop raise in its latest round?
A: Olipop raised $50 million in its latest funding round.

Q: What are the plans for the funding?
A: Olipop plans to use the funding to add to its product lineup, expand its marketing, and distribute its sodas more widely.

Q: What is the revenue of Olipop?
A: Olipop’s annual sales surpassed $400 million last year, doubling the year prior.

Q: What is the revenue of Poppi?
A: Poppi’s annual sales reportedly crossed $100 million in 2023.