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It’s easy to get swept up in the news and activities of the industry’s global titans, but what about the smaller firms that are out there flexing their creative muscles? In this instalment of ‘Start-up of the month’ – which celebrates the lesser-known companies and their innovations – we speak to Ben Goodwin, co-founder, formulator and CEO of Olipop, a US-based soft drinks producer looking turn the traditional carbonated beverage market on its head. PepsiCo’s recent acquisition of Poppi for £1.95bn signals a major shake-up in the healthy soda market, as demand for better-for-you beverages continues to rise.

Olipop has been making waves in the beverage space since its inception in 2018. What were some of the biggest challenges you faced when launching in such a competitive market in 2020?

When we launched, the beverage industry was dominated by legacy soda brands, so breaking through required a mix of innovation, persistence and strategic execution. One of the biggest hurdles was proving that consumers were ready for a soda that didn’t just taste great but also supported their health. At the time, the idea of a functional soda – one that delivered nostalgic flavours while benefiting gut health –was still unheard of. We had to educate people on why Olipop was different while preserving the magic that makes soda so enjoyable.

Why do you think there are so many new soda brands entering the scene this year?

Consumer preferences are shifting – people are more health-conscious than ever and looking for alternatives to traditional high-sugar sodas. When I started experimenting nearly a decade ago, the idea of a functional soda was unheard of. Now, with the category booming, it’s no surprise that more brands want in. Our job as the category creators and standard bearers are to ensure that we focus on impact and scale equally.

How did Olipop differentiate itself from other brands in the functional soda category when the market was flooded with new competitors in early 2020?

What makes Olipop truly unique is our Olismart formula, a carefully crafted blend of functional ingredients (including prebiotics) designed to support your gut microbiome and digestive health. Every OLIPOP can contain 6-9g of fibre and 2-5g of sugar. To make sure we’re delivering on that promise, we also work with a world renowned Scientific Advisory Board that includes globally respected leaders in microbiome, prebiotic, digestive and metabolic health.

Additionally, Olipop meets the FDA’s definition of an 'excellent source of fibre,' reinforcing the efficacy of our formulation. We’ve completed third-party in-vitro research at Purdue University which indicates that our prebiotic fiber blend benefits multiple gut health related measures. We are also the first beverage company to earn the NutraStrong Prebiotic-Verified Product Certification, which independently validates the quantity and potency of prebiotics, as well as prebiotic efficacy and stability data.

The soda category is highly competitive, with numerous big players and startups. What are the key factors that have helped Olipop maintain momentum and grow in this space?

The soda category is incredibly competitive, but what’s kept Olipop growing is our ability to blend nostalgia, functionality and culture in a way that feels fresh and authentic. We’ve built a brand that doesn’t just sell soda – it creates experiences. The product also delivers on a delicious soda, without the compromises.

Our limited-edition collaborations, like Peaches & Cream with Mattel for Barbie’s 65th anniversary and Banana Cream with Illumination’s Minions, have been major momentum drivers – tapping into pop culture, expanding our audience, and even outselling eggs at one point. Beyond flavour innovation, we’ve made big moves in sports, becoming the Official Soda of teams like the New York Liberty and LA Clippers. Breaking into professional sports, where traditional sodas have long dominated.

Beyond campaigns, we’re also working to make functional health more accessible where millions of Americans can now get Olipop reimbursed through 'food as medicine' benefits via our health insurance network partners. We also recently conducted human clinical trials, showing positive results around blood sugar stability and metabolic health, demonstrating our commitment to research and deepening our understanding of Olipop’s health benefits for consumers.

What's next in the soft drinks market? From nostalgic throwbacks to unexpected pairings, these innovations tap into evolving consumer preferences, whether that is for bold, indulgent flavours or lighter, fruiter refreshes. Find out more here.

Can you share any specific strategies that helped Olipop navigate the challenges of securing retail distribution and building a strong brand presence in such a crowded market?

Breaking into retail and building a real brand presence in a category dominated by legacy soda giants took a mix of strategy, persistence and a product that genuinely delivers. From day one, we focused on making a soda that not only tastes incredible but also offers real functional benefits – something retailers and consumers could both get behind. In the early days, we took a grassroots approach –literally going door-to-door to 100 local retailers to get our product on shelves. We started small, launching in just 40 grocery stores in Northern California, and scaled intentionally, working with retail partners who aligned with our mission.

This momentum caught the attention of distributors, opening the door for deeper retail expansion. We also doubled down on consumer education and sampling because once people tried Olipop, they kept coming back. Also, our marketing efforts, from brand collaborations to community-driven campaigns, like the Barbie and Minions collaboration, create the kind of organic demand that makes retailers take notice. Also the retail data speaks for itself – so our strong sales velocities out the gate have helped us tremendously in securing and protecting shelf space.

How important was it for Olipop to tap into emerging trends, such as functional beverages and the demand for healthier soda alternatives, and how did you identify these trends early on?

When I first formulated Olipop, kombucha was on the rise, but a true healthier functional soda alternative didn’t really exist. When I shared my vision, many doubted it was a good idea. Rather than chasing trends, I trusted my gut, recognising a massive opportunity in a category that hadn’t seen real innovation in decades, especially given soda’s 97% household penetration and deep-rooted connection to American nostalgia.

As a start-up in the food and beverage space, what advice would you give to other entrepreneurs looking to launch a product in a competitive category like soft drinks?

My advice is to know your market, prioritise a top-quality product and lead with authenticity. I would say the most important thing you need is to build a brand that truly reflects your values and mission because when it gets tough, and it will, it’s important to have the mission to keep you going. Just chasing 'white space' won’t be enough for you or your team to dig deep. Authenticity is so important to consumers today, especially in a space where they are increasingly looking for transparency and integrity. Lastly, and very importantly, product quality is key in the beverage industry. Invest in developing a good quality product that delivers something unique to the customer and cuts through the crowded shelf.

Many start-ups struggle with scaling their operations. How did Olipop approach scaling its production and distribution, and what were the key milestones in your journey from a small brand to a larger player in the beverage space?

Scaling at such a rapid pace came with its own set of challenges. Growing a company that fast means making sure everything, our team, production, and internal processes, can keep up. We tackled that by building an incredible team, surrounding ourselves with experienced mentors, and maintaining a culture of high trust and adaptability. Some key milestones include expanding from local retailers to nationwide distribution in over 50,000 stores, growing our remote team to over 100 employees, achieving profitability in our sixth year and outselling legacy soda brands in key retailers.

Just recently, securing Series C funding was a huge milestone for us – it validates the work we’ve done to redefine soda and signals the next stage of growth. This investment allows us to scale our mission even further, expanding distribution, fuelling innovation and reaching more people with a better alternative to traditional soda. We’re just getting started!

Looking at Olipop’s growth, what were some of the pivotal moments or decisions that significantly impacted the brand's success?

Reimagining soda has been at the core of Olipop’s success. A big part of what’s fuelled that growth is my approach to flavour formulation. From day one, we set out to create options that would appeal to different soda drinkers, starting with just three SKUs: Vintage Cola, Strawberry Vanilla and Ginger Lemon. That same philosophy drives every new flavour I formulate today.

I still develop every Olipop flavour from my home, and seeing the way consumers connect with them never gets old. People share personal stories about what soda means to them – childhood memories, family traditions – and how Oipop gives them a way to enjoy those flavours without the sugar overload. That emotional connection, combined with a product that truly delivers, has been one of the biggest drivers of our success

What advice would you offer to other food and beverage start-ups when it comes to building strong relationships with retailers and distributors to ensure long-term success?

First, surround yourself with a strong team – having experts in key areas makes a huge difference when navigating the complexities of retail. Second, focus on authentic marketing. Soda is more than just a drink; it’s tied to nostalgia, connection and culture. We’ve leaned into that emotional connection to create real resonance with both consumers and retail partners.

At the same time, prioritising product quality is non-negotiable. Retailers want products that not only stand out but deliver on taste and functionality – Olipop succeeds because it doesn’t ask consumers to compromise. Lastly, listen to your audience. Consumer feedback has been invaluable in shaping our approach, from flavour innovation to marketing strategies. When retailers see that a brand has strong consumer demand, a clear story and a quality product, they’re much more likely to get behind it for the long run.