Olipop is a new single-serve soda on the market, but it recently achieved a remarkable feat by beating out competitors like Coca-Cola and Pepsi to become the number one selling carbonated drink brand in major grocery stores across the United States.
The naturally sweetened pop brand is expected to double its sales from 2023 onwards, reaching $500 million in sales by 2024.
“It’s mind-blowing and amazing,” CEO and co-founder Ben Goodwin told FOX Business in a phone interview.
“For better or worse, I can be a little stoic about it sometimes, because to me it means we’re going in the opposite direction of what we were trying to do.”
But Goodwin and co-founder David Lester don’t foresee a noticeable slowdown, as the functional, modern soda brand plans to embrace innovative marketing strategies, impactful product development and an even bigger impact on the single-serve beverage category.
“The pace of our growth has been incredible,” said Goodwin, a college dropout from California.
“I’m really excited.”
Goodwin lives in Washington state and is 100% committed to developing new flavor profiles in-house.
Recently, OLIPOP made headlines when its collaboration with Barbie surpassed sales of popular animal-based foods.
“At some of our retail partners, the Barbie flavor is outselling eggs,” Goodwin said.
“Obviously, people responded positively to it.”
In early May, Food & Wine magazine reported that Olipop “Barbie” cans were selling out faster than eggs at Sprouts Farmers Market stores.
American multinational toy company Mattel partnered with OLIPOP to propose the idea of collaboration.
Goodwin said the partnership was “a no-brainer.”
This pink tin, popular with people of all ages, is packed with the sweetness of peaches and cream.
Goodwin says he kept one case of the “Minions” banana cream cans that will be released to consumers in 2022, as well as one case of the limited-edition cans for himself.
While the exciting partnership will see Barbie fans flock to stores, Goodwin said there will be new flavors coming this year and next, as well as some “very cool” partnerships in the future.
“One of the big areas we still have to grow is our marketing strategy, and we’re really excited to grow,” Goodwin said.
OLIPOP references deep-rooted American history in its flavor combinations and design elements, and Goodwin said the brand faces stiff competition from name-brand sodas because consumers feel a deep connection and nostalgia for traditional brands.
“The fact that people actually try a brand like ours, love it and often switch is something I take pretty seriously,” Goodwin said.
“For many people, moving away from these established brands is probably not an easy choice.”
Goodwin added that the fact that Americans easily identify with the soda drinks they grew up with is influencing Olipop’s strategy.
“Marketing is hard to get right,” he said.
Goodwin pursued entrepreneurship rather than environmental science., His background includes helping start a kombucha company and working with Lester on a precursor to OLIPOP.
“While we were developing OLIPOP, we lived off the money we saved from that venture,” Goodwin said.
“It was really nice to be able to dip into my savings and get a paycheck again, for the first time in years.”
Currently, OLIPOP is sold at retailers such as Target, Walmart, Publix, Kroger, Whole Foods, Sprouts and Giant Eagle.
Goodwin said OLIPOP has resonated with hospital systems as they seek healthier drink alternatives to offer patients and visitors.
“Our formula is very different from most in this category,” Goodwin said.
“We are classified by the FDA as a good source of dietary fiber, but most of our competitors do not meet that designation.”
Plant fibre and prebiotics are just a few of the ingredients found in every can of OLIPOP.
The brand’s website advertises that each can contains ingredients to support digestive health, in addition to high-fiber ingredients and 2-5 grams of sugar.
The company has a scientific advisory board that includes physicians from a number of prestigious universities.
“We’ve been able to really advocate for our formula with attention to detail, both internally and with multiple external sources,” Goodwin said.
“When we think about the levels and types of fiber that we consume, there tends to be a kind of built-in defense when it comes to telling the gut that it’s doing the right thing.”
He added that the brand has observed a decline in soda consumption among younger consumers across age groups, including Gen Z, who have revealed they are turning to healthier alternatives in food and beverages.
“There’s a little bit more expectation,” Goodwin said.
“The younger generation feels they need something that’s not only really tasty, but also functional.”
In 2023, Gen Z was named the “lighter drinking generation” by Statista due to their lower per capita alcohol consumption. This generation is choosing non-alcoholic drinks, which also offer health benefits, more than any other generation.
Goodwin said that even though the company is currently working towards going plastic bottle-free, he and his team are actively exploring different product formats, including bottled versions, and expects customers to soon be wowed by the different ways they can enjoy their soda.
