The brand also started shipping Classic Root Beer, its fourth and newest flavor, in January 2020. Natural grocer Sprouts will begin selling the soft drink in May 2020. This month, the prebiotic soda becomes available at cult grocery chain Wegmans, as well as at the QFC and Fred Meyer divisions of Kroger. Launched in the San Francisco Bay Area in fall 2018, Olipop notes that it has built a strong foundation for its business along the West Coast. Lester says that it is validating to see many of the original investors who understood their vision contribute further to Olipop’s growth. The award-winning prebiotic beverage brand seeks to become an early category leader in next-generation soda. According to Olipop, the trend in prebiotic beverages is picking up serious momentum in 2020. In this arena, prebiotics and probiotics continue to reign in NPD, with the market researcher’s data showing a 17 percent rise in launches with a probiotic claim (Global 2014-2018).įrom yogurts and snacking to beverages, the industry saw a range of prebiotic applications last year. (Credit: Andi Devon)Participants in the round include Monogram Capital Partners, Rocana Ventures, Finn Capital Partners, Boulder Food Group and Collaborative Fund – all current investors in the Olipop brand that have chosen to increase their respective stakes.ĭigestive health remains a major industry trend and is steadily rising, with Innova Market Insights reporting an 11 percent CAGR in food and beverage launches with a digestive health claim (Global, 2014-2018). The brand has built a loyal consumer base through its familiar and sometimes nostalgic tasting sodas formulated with prebiotics, plant fiber and botanical extracts. Some of the brand’s popular flavors include Ginger Lemon, Cinnamon Cola, Strawberry Vanilla and Classic Root Beer. Now we’re in a position to start sprinting.” We were fortunate enough to be able to turn down potential distribution opportunities and still grow the business significantly.
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We have tested our growth drivers and supply chain before expanding the beverage nationally. “The company wanted to ensure Olipop fit well in the marketplace.
“In 2019, it was important for us to firmly establish our brand in the western half of the US,” says Lester. Moreover, the brand seeks to strengthen the appeal and awareness of digestive health across the US. In light of the investment, Olipop plans to expand its reach to the East Coast and focus on sales and marketing, product innovation, its direct to consumer (D2C) business. Among the investors, Döhler Ventures and Terpsi Capital were two new additions to the list. The news was confirmed by David Lester, Olipop’s Co-Founder and President. Digestive health soda brand Olipop has raised nearly US$10 million in its first major financing round.