Olipop, a prebiotic soda brand founded in 2018, recently announced a $50 million funding round that valued the company at $1.85 billion. The brand has helped popularize the prebiotic soda category, alongside rival Poppi, through claims that their drinks promote gut health, a growing trend in the wellness industry. Olipop’s Series C funding was led by J.P. Morgan Private Capital’s Growth Equity Partners, and the company plans to use the funds to expand its product line, marketing efforts, and distribution.
Olipop has become the top non-alcoholic beverage brand in the U.S. in terms of both dollar sales and unit growth, with approximately half of its growth coming from traditional soda drinkers and the other half from new consumers entering the market. The company became profitable in early 2024, with annual sales surpassing $400 million. Both PepsiCo and Coca-Cola have reportedly shown interest in acquiring Olipop.
Meanwhile, Poppi, Olipop’s main rival, has raised $39.3 million and saw annual sales exceed $100 million in 2023. The brand also received attention for airing a Super Bowl ad for the second consecutive year, but has faced backlash for its health claims. Poppi is currently in discussions to settle a lawsuit alleging that its drinks are not as healthy as advertised. Overall, the prebiotic soda market is showing significant growth and attracting attention from major players in the beverage industry.
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