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.
Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with 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 Series C funding round was led by J.P. Morgan Private Capital’s Growth Equity Partners. The company plans to use the money that it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.
Today, Olipop is the top non-alcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS. Roughly half of 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.
In early 2024, Olipop reached profitability, the company said. Its annual sales surpassed $400 million last year, doubling the year prior. In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.
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.
Poppi has also faced some backlash for its health claims. The company is currently in talks to settle a lawsuit that argued that Poppi’s drinks aren’t as healthy as the company claims, according to court filings.