Olipop
From a failed first brand and $100,000 in startup capital to $400 million in revenue, a $1.85 billion valuation, and the company that turned down both Coke and Pepsi.
Ben Goodwin spent $300,000 and eight years building a probiotic soda called Obi. It failed. The $100,000 he salvaged from selling it became the startup capital for Olipop, which scaled from under $1 million in revenue in 2019 to $400 million by 2024, making it the fastest-growing non-alcoholic beverage brand in the country by both dollar sales and unit growth.
When Coca-Cola and PepsiCo both came knocking about a potential acquisition in 2023, Olipop said no. PepsiCo went on to buy rival Poppi for $1.95 billion instead. Olipop is now the largest independent brand in functional soda, holding 60% of the market and competing directly against both of the companies that tried to buy it.
At a glance:
| Founded | 2018 |
| Founders | Ben Goodwin (CEO, Formulator), David Lester (Co-Founder) |
| Headquarters | Oakland, California |
| Ownership | Private; founders retain significant equity |
| Revenue (2024) | $400M |
| Valuation | $1.85B (February 2025, Series C) |
| Total funding | ~$243M across 5 rounds |
| Profitability | Profitable since early 2024 |
| Retailers | 50,000+ locations including Walmart, Target, Kroger, Costco, Whole Foods, Starbucks, Amazon |
| Corporate structure | Public Benefit Corporation; B Corp certified (score: 91) |
The Story
Goodwin dropped out of UC Santa Cruz in 2005, helped a friend start a kombucha company, and spent the next several years convinced he could deliver prebiotic fiber through something that tasted like the sodas people already drank. He poured roughly $300,000 of personal savings into a makeshift lab with a microbiologist and launched Obi Probiotic Soda in 2012, a water kefir-based product that never gained traction.
David Lester, a former Diageo marketing director who had spent nearly a decade on brands like Johnnie Walker, joined as CEO after a mutual connection introduced them at a Palo Alto coffee shop in 2013. They sold Obi in 2016 for an undisclosed amount, and the $100,000 from that sale, plus $300,000 worth of failed formulations, became the foundation for their next attempt.
Olipop launched in 2018 with a proprietary blend called OLISMART that delivers 9 grams of prebiotic fiber per can from chicory root inulin, cassava root fiber, and Jerusalem artichoke inulin. The name combines “oligosaccharide” with “pop,” and Goodwin still develops every flavor himself.
The Strategy
Nine grams versus two
The entire competitive positioning comes down to a single number. Olipop contains 9 grams of prebiotic fiber per can compared to Poppi’s 2 grams. That gap is the reason nutritionists have consistently recommended Olipop over its rival, and the reason Olipop survived the same legal scrutiny that cost Poppi $8.9 million: when Poppi was sued for misleading gut health claims, the scientific criticism centered on the insufficiency of 2 grams, and Olipop’s 9 grams placed it above the threshold where research supports digestive benefits.
Soda that happens to be healthy
Most functional beverages position themselves as health products that tolerate comparison to soda. Olipop did the opposite. Nineteen flavors, Vintage Cola, Classic Root Beer, Cream Soda, Ginger Ale, each designed to evoke the drinks people grew up with, positioned against the $42 billion traditional soda market where 97% of American households already buy soda. Rather than asking people to try something new, Olipop replaced something they already bought. The root beer overtook A&W as the best-selling root beer at a major U.S. retailer.
Revenue efficiency that breaks CPG norms
Olipop reached $200 million in revenue with 28,000 retail locations. Most CPG companies need 80,000 or more doors to hit that number. The gap exists because Olipop started in natural and specialty retailers like Whole Foods, built velocity and repeat purchase rates in each store before expanding to the next tier, and then moved into mainstream grocery at Kroger and Publix before reaching mass market at Walmart, Target, and Costco. By 2025, Walmart alone represented a nine-figure business.
TikTok at $0.61 per thousand impressions
Olipop partnered with 30 to 40 creators monthly and hired a full-time in-house TikTok creator, Sara Crane, who leaned into humor and viral trends rather than polished health messaging. The #OlipopPartner hashtag amassed over 1.3 billion views at a cost per thousand impressions of $0.61, which is a fraction of what most brands pay for paid social. The affiliate program offered creators up to 20% commissions, and the brand’s entire influencer marketing strategy prioritized authenticity over scripts.
The Numbers
| Year | Revenue | Notes |
|---|---|---|
| 2019 | <$1M | Launch year |
| 2020 | $8.6M | First meaningful traction |
| 2021 | $29.7M | 245% growth |
| 2022 | $73.4M | 147% growth |
| 2023 | $200M | 173% growth |
| 2024 | $400M | 100% growth; profitable |
| 2025 (projected) | $500M | Company guidance |
Olipop raised approximately $243 million across five rounds. Celebrity investors from the Series B include Camila Cabello, Priyanka Chopra Jonas, the Jonas Brothers, Mindy Kaling, Logic, and Gwyneth Paltrow. Indra Nooyi, the former CEO of PepsiCo, also invested, which means the woman who ran PepsiCo put her own money into the company trying to disrupt it.
Collaborative Fund estimates that seed investors who contributed $2.5 million for roughly 28% of the company now hold approximately 13% after dilution, worth about $639 million at the current valuation. A 256x return.
Controversies
The fiber lawsuit
In December 2025, a class action alleged that Olipop’s 6 to 9 grams of fiber per can is insufficient to provide meaningful digestive benefits, citing research that prebiotics require 12 or more grams daily for at least one month. The case also argued that 2 to 5 grams of sugar per can negates any prebiotic benefits. The case is pending as of early 2026.
The Super Bowl vending machine fight
When Poppi faced backlash for sending custom vending machines to influencers before Super Bowl LIX in February 2025, Olipop’s official social accounts actively amplified the criticism, commenting on TikTok videos claiming each vending machine cost $25,000 and the total campaign cost $16 million. Poppi co-founder Allison Ellsworth called out “misinformation being spread out there by one of our competitors” in a response video, and Poppi disputed the $25,000 figure as “fabricated and inflated by 60%.” The tactic drew praise for competitive boldness and criticism for punching at a rival rather than letting the product speak for itself.
What You Can Learn
Your first company is your tuition. Goodwin spent $300,000 and eight years on a product that failed. The $100,000 he salvaged and everything he learned about formulation, positioning, and retail became the reason Olipop worked. A failed first attempt is not wasted time if the founder treats it as research.
Compete with the giant, not the niche. Olipop designed its flavors to taste like Coke, A&W, and Cream Soda because the real market is the $42 billion people already spend on traditional soda, not the comparatively tiny functional beverage category. Building a product that replaces what people already buy is a fundamentally different strategy than building one that asks them to try something new.
Revenue per store matters more than store count. Olipop hit $200 million with 28,000 doors because it built velocity in each retailer before expanding, rather than flooding the market with distribution and hoping the numbers would follow. The disciplined rollout, natural channel to mainstream grocery to mass market, is the same pattern behind nearly every successful CPG brand.
Frequently Asked Questions
Who founded Olipop?
Ben Goodwin and David Lester co-founded Olipop in 2018 after their first company together, Obi Probiotic Soda, failed to gain traction.
How much is Olipop worth?
Olipop was valued at $1.85 billion in its February 2025 Series C led by JP Morgan Private Capital, which the company described as its final anticipated equity round.
Is Olipop better than Poppi?
Olipop contains 9 grams of prebiotic fiber per can compared to Poppi’s 2 grams, which is the primary factual distinction. Poppi was acquired by PepsiCo for $1.95 billion in 2025 after settling a class action over gut health claims for $8.9 million. Olipop remains independent.
Is Olipop profitable?
Olipop reached profitability in early 2024 and has described itself as a fully profitable business model requiring no additional capital to sustain operations.
Where can you buy Olipop?
Over 50,000 retail locations including Walmart, Target, Kroger, Costco, Whole Foods, Starbucks, Sprouts, Publix, and through Amazon and drinkolipop.com.
When was Olipop founded?
Olipop was founded in 2018 by Ben Goodwin and David Lester, who launched the brand using $100,000 salvaged from selling their first beverage company, Obi Probiotic Soda, in 2016.
Who owns Olipop?
Olipop remains founder-led, with Ben Goodwin and David Lester retaining significant equity alongside institutional investors. The February 2025 Series C was led by JP Morgan Private Capital, which the company described as its final anticipated equity round, and Olipop has publicly turned down acquisition interest from both Coca-Cola and PepsiCo.
What is Olipop’s revenue?
Olipop reached $400 million in revenue in 2024, doubling from $200 million in 2023, and the company has guided to roughly $500 million in 2025. The brand is the fastest-growing non-alcoholic beverage in the country by both dollar sales and unit growth.
Sources
- CNBC, “Olipop prebiotic soda valued at $1.85 billion in funding round,” February 2025. Series C details, revenue figures, profitability status.
- Entrepreneur, “Olipop Is Nearing a Half Billion Dollars in Sales,” 2024. Revenue efficiency, store count analysis, market positioning.
- CNBC, “How Olipop’s founders turned $100K into a healthier soda brand,” September 2023. Obi origin story, startup capital.
- CNBC, “Olipop nears $200 million in annual sales, Coke and Pepsi come knocking,” April 2023. Acquisition interest from Coke and PepsiCo.
- Collaborative Fund, “Why Olipop Might Be a Better Investment Than OpenAI,” 2025. Seed investor returns, revenue trajectory, ownership dilution analysis.
- GlobeNewsWire, “OLIPOP Announces $30M Series B Funding Round,” February 2022. Celebrity investor list, Indra Nooyi investment.
- ClassAction.org, “Olipop class action lawsuit claims prebiotic soda offers minimal health benefits,” December 2025. Lawsuit details, fiber content claims.
- Food Dive, “Olipop doubles down on health claims as Pepsi, Coke enter better-for-you soda,” 2025. Competitive landscape, Simply Pop launch.
- Marketing Brew, “Poppi Olipop Super Bowl vending machine campaign controversy,” February 2025. Super Bowl counter-marketing controversy.
- Taste Radio, “From $1M to $500M in Five Years: Olipop’s Explosive Growth,” 2024. Revenue growth timeline.