In an era when health-consciousness is reshaping consumer preferences, OliPop has emerged as a disruptive force in the $38 billion U.S. carbonated soft drink market and $200 billion beverage market.
OliPop, this prebiotic soda brand, has skyrocketed to a staggering $500 million in sales, carving out a significant niche in the “better-for-you” beverage category.
What are some valuable insights for industry leaders and start-up entrepreneurs?
The Genesis of a Gut-Health Revolution
OliPop’s story begins with its co-founder, Ben Goodwin, whose challenging childhood marked by abuse and health issues became the catalyst for a lifelong interest in wellness. Goodwin’s struggles with gut health and his subsequent deep dive into microbiome research laid the foundation for what would become a revolutionary product in the beverage industry.
His simple idea was could you make a healthy soda that has some functional benefit?
Goodwin created a simulated microbiological lab in an outdoor shed to figure out the benefits of various botanicals. Think Breaking Bad or Lessons in Chemistry. This is what entrepreneurs do when they don’t have the funds to invest in expensive equipment.
2018 Goodwin partnered with David Lester to launch OliPop, positioning it as more than just another soda alternative. They envisioned a beverage that could deliver on taste while providing tangible healath benefits, particularly for digestive wellness.
Before Olipop, Ben Goodwin co-founded Obi Probiotic Soda. Obi was launched in 2014 as one of the first probiotic sodas on the market, aiming to provide a healthier alternative to traditional soft drinks.
Despite gaining some traction and distribution, Obi Probiotic Soda faced challenges in scaling and ultimately ceased operations in 2017. The experience with Obi provided Goodwin with valuable insights and learnings, which he later applied to the development of Olipop. After Obi’s closure, Goodwin took time to research and refine his approach to functional beverages, leading to the creation of Olipop in 2018 with his co-founder, David Lester.
Navigating the Competitive Landscape
Entering a market dominated by giants like Coca-Cola and PepsiCo, OliPop faced the daunting task of differentiating itself. The brand’s unique selling proposition was clear: a delicious soda that supports digestive health with prebiotics, plant fiber, and botanicals. This proposition resonated with health-conscious consumers seeking alternatives to traditional sugary sodas without sacrificing flavor.
The brand uses natural ingredients and probiotics to create flavorful, functional beverages. The label reveals cassava root, chicory root, Jersusalem artichoke, Nopal cactus, calendula flour, kudzu root, marshmellow root, acacia fiber and guar fiber. Somehow, they make those ingredients taste delicious. A botanical miracle!
OliPop’s timing was impeccable. The brand launched as the gut health trend gained momentum, riding the wave of increasing consumer interest in microbiome health and its impact on overall well-being.
Why the name OliPop?
The “Oli” in Olipop indeed stands for a prebiotic ingredient, specifically oligosaccharides. Oligosaccharides are a type of prebiotic fiber that plays a crucial role in the functional benefits of Olipop.
Oligosaccharides are short-chain carbohydrates that act as a food source for beneficial gut bacteria. They’re not digested by human enzymes but are fermented by gut microbiota in the colon, promoting the growth of beneficial bacteria.
So, to break it down:
- “Oli” comes from oligosaccharides
- “Pop” refers to the soda or carbonated beverage
Scaling Challenges, Triumphs and Supporting Digestive Health
The journey from a startup to a half-billion-dollar brand was challenging. OliPop had to navigate:
1. Supply chain complexities in sourcing unique ingredients
2. Scaling production while maintaining product integrity
3. Educating consumers on the benefits of prebiotics and gut health
Despite these hurdles, OliPop’s growth has been remarkable. The brand successfully expanded its distribution from niche health food stores to major retailers like Target and Walmart, significantly increasing its market penetration. They wisely began in places like Erewhon and other natural foods retailers to prove that knowledgeable (and wealthier) consumers would buy the product. Erewhon has a notorious reputation for attracting Target, Walmart, and Costco buyers looking for the next big thing.
Critical Lessons for Industry Leaders
Innovation Driven by Personal Mission:
Goodwin’s health journey translated into a product that addressed a genuine consumer need. This authenticity resonated with consumers and differentiated OliPop in a crowded market. For CMOs and entreprenuers, this underscores the power of purpose-driven innovation beyond mere product features. Success to Goodwin was improving health for consumers by substituting a traditonal soda with Olipop, that supports digestive health.
Timing and Trend Alignment:
OliPop’s success was amplified by its alignment with the growing gut health trend. The lesson here is the importance of market timing and the ability to capitalize on emerging consumer interests. Marketing leaders should constantly scan the horizon for opportunities to position their brands at the forefront of consumer trends.
Balancing Health and Indulgence:
OliPop’s success lies in its ability to deliver both health benefits and taste—a critical balance in the beverage industry. This demonstrates that health-focused products need not compromise on the indulgence factor that consumers seek in categories like soda. For beverage industry executives, this highlights the potential of creating products that bridge the gap between health and pleasure. The first rule for food and beverage brands is that it has to taste good before you can explain how you are different. Ben understood this from day one.
Pop Goes the Olipop
As the beverage landscape evolves, OliPop’s journey from a gut health-focused startup to a significant carbonated soft drink market player offers valuable insights. It is a testament to the power of innovative thinking, authentic brand storytelling, and the ability to meet evolving consumer needs in a traditionally challenging industry.
The founders said, “We’re not just selling a beverage; we’re promoting a lifestyle.” As we move forward, let this ethos guide our marketing strategies, reminding us that behind every brand is a story waiting to be told.
Olipop is a carbonated beverage containing beneficial oligosaccharides, which aligns with the brand’s focus on gut health and providing a healthier alternative to traditional sodas.
Simply stated, Olipop is healthier soda powered by botanicals for digestive health.
Watch this brand pop, not fizzle out.
Connect with Jeff at The Marketing Sage Consultancy. Interested in setting up a call with me? Use my calendly to schedule a time to talk. The call is free, and we can discuss your brand and marketing needs. If you want to learn more about my new offering, The Trusted Advisor Board, you can click here to learn the details. Feel free to email me at jeffslater@themarketing sage.com or text 919 720 0995. Thanks for your interest in working with The Marketing Sage Consultancy.
If you want to learn more about Ben’s journey, listen to this insightful interview here.
Photo by Madalyn Cox on Unsplash
