Olipop: Solving America’s Coke Problem
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“Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?” - Steven Jobs
Sodas are delicious and there’s nothing more satisfying (or American) than a cold Coca-Cola on a hot day. But unfortunately for us, sugary drinks are also the devil. Cue the better-for-you soda trend.
2023 was the year the beverage aisle really started to change and our Tiktok feeds exploded with shiny, colorful cans of better-for-you drinks. There’s no doubt that Olipop has been the big name on campus but, like many other stories, Olipop’s overnight success was also 20 years in the making.
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Clean-up in the Soda Aisle
America has a coke-addiction.
The average person in America drinks 403 Coca-Cola products every year, with over 60% being in the Cola categories. That’s A LOT of coke for one person.
But if you live in LA or any other city that caters well to the health crowd (or just Gen Z), you’ve probably seen the soda shelf change over the past few years. And you’re not wrong - better-for-you sodas had a breakout year in 2023. Between 2021 and 2023, US retail sales for better-for-you sodas have gone from $78 million to $486 million.
US Retail Sales for BFY Sodas ($ million)
6 of the 10 fastest growing CPG brands in 2023 (according to market-research company, Numerator) and 4 of the 10 of the fastest growing emerging brands on Instacart were sodas or energy drinks.
But one company - Olipop - is taking the lead in the battle to scrub up the soda aisle - changing things up in a category that has been long been criticized for being the single largest source of calories and added sugar in the U.S. diet. The company is now reportedly doing $200 million in retail sales annually for their better-for-you sodas.
We take a look at some Olipop products and how they compare to what we’re used to seeing in sugary drinks.
The Olipop Story
The road to Olipop started in 2005 when co-founder Ben Goodwin, like many entrepreneurial success stories, dropped out of college at UC Santa Cruz.
Goodwin left school and helped a friend start a kombucha company- his introduction how gut-health impacts the rest of our health and the ingredients we can use to support the digestive system. In 2008, he left the company with the mission to develop his a new drink, one that was closer to a soda than a can of booch to make it work for the mass market.
During this time, he was introduced to David Lester who was leaving his job at an alcohol distributor and thinking along the same lines. Together, the two brought a probiotic soda brand called Obi to market, which they ran together between 2013 and its eventual sale in 2016.
While Obi did get acquired, it hadn’t reached the level they had both hoped for. After the sale, they went back to the drawing board and upated the approach to working with prebiotics instead of probiotics and used some of the proceeds from the Obi sale to finance the early growth of a new company - Olipop - based on a formula of 7-ingredients that now creates the base for each of the soda flavors.
The company officially launched in 2017. By the end of 2019 they had hit $850,000 in revenue and raised a $2.5 million seed round. In 2022 the company raised a $39.7 million in Series B funding with celebrity investors, like Camila Cabello and Gwyneth Paltrow, and PepsiCo’s former CEO. In 2023, they reached $20 million in monthly sales, becoming America’s fastest-growing (healthy) soda brand.
The Probiotic Soda Trend
It’s 2024 and gut health isn’t only marketed towards senior citizens in yogurt ads. The younger crowds are learning about healthy bacteria and all the foods that provide a dose of probiotics. Remember the sauerkraut celebrations and kimchi craze? Now, Gen Z has jumped on the health trend and used TikTok to share their thoughts about alternative soda brands – search the words “probiotic soda” and find 100+ million results!
What are the benefits?
Probiotic and prebiotic sodas are carbonated drinks made with gut-friendly ingredients, less sugar, and fewer calories. Probiotics are the healthy bacteria that live in your gut and keep things balanced. Prebiotics, found in Olipop, are food for probiotics that help them thrive. Probiotic and prebiotic sodas are meant to support gut health and help with digestion, inflammation, regular bowel movements, and lower blood sugar levels.
Word of caution: don’t overdo it. The limit does exist and taking too many prebiotics and probiotics can lead to cramping, bloating, and diarrhea. Most people feel benefits with only 2.5-10 grams a day!
Nutritional Comparisons
When was the last time you checked out the nutritional facts on a soda can? In case you didn’t know, here are the facts. A 12 oz. can of Coca-Cola has 140 calories, 45 mg of sodium, 39 g of added sugar (oh, and 34 mg of caffeine).
But the added sugar is the big one. How much is 39 g of added sugar? A teaspoon is 4.2 grams. So imagine scooping 7 to 10 teaspoons full of sugar and dumping it into an 12-ounce glass of water and taking a sip.
Olipop and the other major breakout brand in the category, Poppi, aren’t sugar free but they’re well below the crazy benchmark Coca Cola set for the market. An Olipop Vintage Cola has 2 g of added sugar and an Poppi Classsic Cola has 4 g. Still some sweetness, but at least it’s less than a teaspoon this time.
Nutrition of a 12 oz Can of Cola
The Secret Formula
Each flavor starts with the OLISmart 7-ingredient botanical blend. There’s cassava root, chicory root, and kudzu root (East Asian vine) for prebiotic fiber. Nopal cactus and Jerusalem root (from a sunflower variety) add a boost of antioxidants. Wrap things up with Calendula flower for sweetness and natural healing properties and marshmallow root with its digestive health support.
Olipop Products
There are currently 16 Olipop flavors. You have the classics from childhood like Cream Soda and fruity, refreshing blends including Watermelon Lime and Tropical Punch.
Vintage Cola
We’ll start with one of the OGs. Vintage Cola does what that red and white brand can’t. It gives you natural caffeine from green tea, prebiotics, and recognizable ingredients like apple juice, vanilla, and cinnamon. It packs all this in a can with 35 calories and 2 g of added sugar. Keep in mind that Olipop has more caffeine (50 mg per serving) than Coca-Cola.
Strawberry Vanilla
Imagine that strawberry juice and a scoop of vanilla ice cream had a bubbly baby. You’d get Strawberry Vanilla, a soda that satiates your sweet cravings and feels more like a dessert. With only 3 g of sugar and 9 g of fiber, this practically counts as a serving of fruit.
Classic Root Beer
Root beer was my go-to soda as a kid. My siblings didn’t understand why I enjoyed the minty, licorice-like, almost cough syrup taste, but I couldn’t get enough! So you’ll understand the euphoric moment when I cracked open Olipop Root Beer that’s flavored with plants. All the flavor, none of the terrible ingredients.
Where to buy it
You can’t walk into a store without seeing Olipop in the fridge section. I found 77 stores within 5 miles of my zip code that sell this better-for-you beverage. You can find it at Target, Whole Foods, Sprouts, Walmart, Ralphs, Sam’s Club, Albertsons, Vons, convenience stores, and even restaurants. Use the store locator to find a shop or order online.
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