For over a decade, Ben Goodwin and David Lester embarked on a mission to create a delicious and gut-healthy soda that is high in fiber and low in sugar. In 2018, these visionaries launched Olipop, a prebiotic soda consisting of eight plant-based ingredients designed to support digestive and gut health.

Within its first year of operation, Olipop generated a staggering $852,000 in gross revenue, selling at just 40 grocery stores in Northern California. Fast forward to today, and Olipop's growth has been nothing short of exponential; the prebiotic soda market ended 2022 with a gross revenue of $73.4 million and is projected to surpass $200 million in sales by the end of 2023. This exponential growth can be attributed to an increasing awareness of gut health benefits among consumers.

Ben Goodwin, a native of San Francisco, and David Lester, from northwest England, first collaborated on a probiotic soda named Obi. Although they did not achieve the success they hoped for, the duo used the knowledge they gained from Obi to create Olipop.

After two years of researching and perfecting their new soda recipe, Ben and David finally launched it in the market. Utilizing an initial investment of $100,000, they focused on branding and creating a mass-produced product that would appeal to consumers. Their dedication and innovation in creating a healthier soda alternative have revolutionized the beverage market, and their partnership has led to the impressive success of Olipop.

Key Takeaways

• Ben Goodwin and David Lester successfully launched Olipop, a prebiotic soda focused on digestive and gut health.

• The company's growth has been exponential, with the prebiotic soda market projected to surpass $200 million in sales by the end of 2023.

• The founders used their previous experiences from their initial venture, Obi, to refine and perfect Olipop's unique and appealing formula.

The $20M/Month Soda Success Story

Ben Goodwin and David created a tasty, gut-healthy, fiber-rich, and low-sugar beverage. In 2018, they introduced Olipop, a prebiotic soda made from eight plant-based ingredients that promote digestive and gut health. Beginning with sales in just 40 grocery stores in Northern California, Olipop has rapidly expanded.

Ben, a San Francisco native who adopted a healthier lifestyle in his youth, found his calling in nutrition and left college to help start a kombucha company. David, who hails from northwest England, pursued a career in management studies and worked at a spirit company in London. However, he eventually grew restless in the corporate environment and sought a change. A mutual connection led Ben and David to meet and discuss a potential partnership involving a prebiotic soda company, Obi. The two became partners, but their initial product, a probiotic soda called Obi, didn't gain the traction they'd hoped for.

After selling Obi in 2016, Ben and David learned from their previous experiences and devised a new, healthier soda formula, which eventually became Olipop. With $100,000 from the sale of Obi, the duo invested $70,000 in branding and $30,000 in product formulation for mass production.

Despite initial skepticism from investors who deemed healthy soda as an unattractive venture, Ben and David persisted and aimed to create a product with a flavor profile similar to iconic soda brands but with a healthier nutritional label.

By the end of 2018, they finalized the branding and product name, choosing Olipop for its reference to both soda and prebiotic fibers found in the beverage. The name Olipop was derived from combining "Ollie," a reference to prebiotic fibers called oligosaccharides, and "pop," a colloquial term for soda.

Olipop launched in early 2019 with three flavors: Ginger, Strawberry Vanilla, and Cinnamon Cola. The line has since expanded, with new flavors added, including Root Beer.

The challenges didn't stop there: Ben and David had to secure distributors and pre-sell their product to at least 100 stores before launching Olipop. Despite falling short of the 100-store mark, their persistence paid off when a distributor agreed to take on their product. In early 2019, Olipop launched in three flavors across 40 health food stores in Northern California.

The Initial Investment for Olipop

After a decade of research and development, the two entrepreneurs invested $100,000 in Olipop. This initial funding came from selling their previous venture, a probiotic soda called Obi.

Despite facing skepticism from investors about the idea of a healthy soda, Ben and David believed in their unique approach and entered the declining soda market with high optimism. Using their shared knowledge of gut health, the duo spent considerable time crafting Olipop's distinctive flavor profiles that mimicked popular soda brands. However, they managed to do so while offering a healthier nutritional label.

With the product launch in 2018, Olipop faced numerous challenges to get onto store shelves. The two founders took matters into their own hands, driving across the San Francisco Bay Area and pitching their soda to local natural grocery stores. Eventually, they managed to secure around 40 to 50 stores to carry their product. This led a small direct store delivery distributor to partner with them and start distributing Olipop.

The initial investment of $100,000 not only kickstarted this prebiotic soda journey but also led to its breakthrough success. Olipop continues to grow and evolve, offering customers healthier alternatives to conventional sodas and proving that innovative ideas can indeed disrupt long-standing markets.

Creating the Perfect Recipe for Olipop

What made Olipop stand out in the competitive beverage market was the duo's relentless focus on blending familiar soda flavors with a healthier nutritional profile. A combination of eight plant-based ingredients helps support digestive and gut health, while also maintaining a close similarity to iconic soda flavors. The result? A much healthier alternative that still provides consumers with the traditional soda experience.

This innovative product didn’t come easy, as it took Ben and David two years to perfect their new soda recipe. During the formulation process, a key challenge was balancing the flavor profiles with the health benefits. They decided to invest heavily in branding, while also allocating significant resources to developing a suitable formula for mass production.

When the time came to choose a name for their drink, they settled on Olipop, drawing inspiration from the world of prebiotic fibers and regional references to soda. The process of getting their product on store shelves required persistence and belief in the potential of their creation. With unyielding determination, they were able to secure distribution by pre-selling to a number of stores in the San Francisco Bay Area.

Since its launch in 2019, Olipop has massively expanded its reach and revenue, making its presence known in the prebiotic soda market. The team continuously works on refining their product and developing new flavors to ensure that Olipop remains a leading choice among health-conscious consumers seeking a delicious yet beneficial soda experience.

The result? A prebiotic soda that slashes sugar content to just 2-5g per can, while also providing a solid 9g of fiber, all for an affordable price. At a retail price of around $2.49 per can, the gut-friendly soda offers a tasty and healthier alternative for consumers who still want to enjoy their favorite flavors.

Revenue Growth

Since then, Olipop has experienced rapid growth year by year. In 2020, their gross revenue reached $8.6 million. The following year, 2021, saw their revenue jump to an impressive $29.7 million. This growth is largely attributed to an increase in consumer awareness of the benefits of gut health, as well as Olipop's unique approach to both flavor and nutritional profiles.

In 2022, Olipop managed to close the year with a whopping $73.4 million in gross revenue. To maintain sales momentum, Ben Goodwin continuously invested time and effort in creating innovative and delicious flavors, thoughtfully crafted to align with customer expectations. Incorporating healthier ingredients that are reminiscent of favorite soda tastes, the cans are priced at a reasonable $2.49 each.

Projecting forward, the prebiotic soda market is expected to surpass $200 million in sales by the end of 2023. Along with the broader prebiotic market's anticipated growth to reach $21.2 billion by 2030, it's clear that Olipop is making waves as a multi-million dollar soda company, with an initial investment of just $100,000. In the years to come, they will likely continue to provide consumers with delicious, health-conscious alternatives to traditional soda flavors.

The soda industry has seen a decline in recent years, but Olipop has captured the interest of consumers through their focus on gut health, enticing flavor profiles, and a healthier nutritional alternative to traditional sodas. With just 2 to 5 grams of sugar per can and nine grams of fiber, Olipop is revolutionizing the soda market one delicious drink at a time.