Case Study: Olipop

Why Was Olipop Unique, and What Made Them Stand Out?

For decades, soda was synonymous with sugar, nostalgia, and guilty pleasure—dominated by giants like Coca-Cola and Pepsi. But health-conscious consumers increasingly turned away from sugary drinks. Most alternatives focused on removing something (sugar-free, diet, zero-calorie), often relying on artificial sweeteners.

OLIPOP took a different approach: they repositioned soda as a health-forward product—not just “less bad,” but actively good for you. With gut-healthy prebiotics, botanicals, and less than 5g of sugar per can, OLIPOP became a hybrid between a functional health drink and a nostalgic soda experience.

The results? By 2023, OLIPOP became one of the fastest-growing beverage startups in the U.S., valued at over $200 million, and it continues to scale with placements in Target, Whole Foods, and Kroger.

Some of the numbers behind that uniqueness:

• Founded by Ben Goodwin & David Lester in 2018 with an initial investment of US$100,000.

• Revenue in 2022 was US$73.4 million; by the first half of 2023, they hit US$100 million.

• As of early 2025, Olipop is stocked in over 50,000 stores and valued at US$1.85 billion after a US$50 million funding round.

Their Rebrand & How They Changed Their Brand Image

Olipop’s rebrand was more than design polish. It was a strategic repositioning that enabled them to widen their audience and scale faster.

Here’s what changed:

• Tagline Change: Originally marketed as “A Sparkling Tonic,” Olipop shifted to “A New Kind of Soda” around 2021. This reframed the brand from being only about gut health to being a healthier soda replacement for a broader crowd.

• Packaging & Visual Identity Update: Their cans and branding adopted more vibrant, eye-catching designs with simpler warning about health credentials. Earlier packaging leaned more medicinal; newer designs emphasize flavor, fun, and soda nostalgia, while still communicating the health benefits in clean icons/text.

• Flavor Expansion & Retail Growth: With the rebrand came more flavors, more variety, and wider distribution—from health food and wellness stores to mainstream retailers like Walmart, Target, Whole Foods, etc.

Because of these changes, Olipop broadened its consumer base. What was once a more niche product for people focused on microbiome and gut health became a soda alternative that appeals to younger consumers who love flavor but worry about sugar or health impacts.

Their Detailed Marketing Strategy

Olipop’s marketing strategy mixes science, social culture, and community-oriented content. Here’s how they do it in detail:

1. Functional Product + Scientific Credibility
   Their formula (“OLISmart”) uses prebiotics and plant fiber, low sugar, and natural sweeteners. They also partner with microbiome researchers (e.g. Purdue University) to increase credibility.

2. Influencer and Creator-Driven Content over Traditional Ads
   Olipop waited to do TV/outdoor ads until later (2023), focusing early on organic content, gifting, creator partnerships. Their TikTok content is particularly strong. One micro-influencer, Sara Crane, took over their TikTok in early periods, growing their presence.

   They ran campaigns on TikTok with high reach: for example, they generated 1.3 billion views at ~$0.61 CPM on TikTok. Organic search traffic rose from 20,000 visits/month to over 150,000.

3. Retail Scaling + Distribution Strategy
   They started in niche, healthy / wellness retail but pushed into mainstream chains (Walmart, Target, Kroger, Whole Foods). This broadened access and visibility. Also, getting into 50,000+ stores by 2025.

4. Flavor Innovation & Nostalgia
   They offer flavors reminiscent of classic sodas—Root Beer, Vintage Cola, Cream Soda, Tropical Punch—while maintaining health credentials. Nostalgic flavors help with consumer trial. Also, limited-edition collaborations—like a Barbie themed peaches & cream flavor—expand brand visibility.

5. Repositioning Messaging
   Moving from “gut health tonic” to “a healthier soda” reframed the product for customers who might want “fun soda” but with better-for-you benefits. This allowed them to tap into broader soda drinkers and health-conscious consumers.

6. Balancing Health + Taste + Access
   Keeping sugar low (2–5g), fiber high (~9g) per can, ensuring taste is pleasant, and making the product available widely is part of their strategy. Also focusing on sustainable and honestly communicated ingredients.

   

How Can Other Business Owners Use/Implement This in Their Business?

Here are actionable ways to apply parts of Olipop's strategy:

• Start with a distinct product promise + credibility: If your product has an underutilized functional benefit (health, sustainability, convenience, etc.), build messaging and design around that, but ensure you have real science or data to back it up.

• Rebrand when growth requires broader appeal: If your brand starts niche and your messaging limits reach, consider repositioning. Change slogans, packaging, flavor or SKU variety to attract adjacent audiences.

• Leverage influencer & creator content early over expensive traditional ads. Gifting, micro-influencers, authentic UGC often perform better in awareness and connection with Gen Z.

• Flavor and sensory delight matter: Even functional products must satisfy taste, appearance, and emotional associations (nostalgia etc.). Too much “healthy” can be bland; taste anchors repeat purchase.

• Distribution strategy matters: Starting in specialty stores can build loyalty, but scaling requires placement in mainstream retailers. Visibility drives trial.

• Track leading indicators (search traffic, social reach, store locator usage) not just direct sales. These help predict retail velocity and growth before revenue flows.

Takeaways

• Explosive growth is possible: From ~$70-$100 million in revenue in 2022–2023, to over US$400 million in sales in 2024. Olipop shows what strong positioning + flavor + distribution + marketing can do.

• Valuation reflects momentum: Valued at US$1.85 billion in 2025 demonstrates investor belief.

• Messaging shift can unlock bigger audiences: The move from “prebiotic tonic” to “a new kind of soda” widened their market.

• Influencer + content marketing still works: Especially for health-oriented, younger demographic products. Low paid ads early + strong creator strategy + viral content = big awareness.

• Taste + nostalgia + health are a powerful combo: Olipop balanced flavor and health in a way that didn’t feel preachy.