Olipop, a rapidly growing player in the functional beverage sector, has successfully closed a $50 million Series C funding round led by JP Morgan Private Capital’s Growth Equity Partners.

This investment not only underscores Olipop's rising prominence in the beverage market but also highlights the increasing interest from investors in health-oriented alternatives to traditional soft drinks.

Founded in 2018 by Ben Goodwin and David Lester, Olipop has positioned itself as a strong player in the modern soda category, offering a high-fibre (made with plant fibre and prebiotics) beverage with significantly lower sugar content compared to conventional sodas.

The brand's approach has resonated with health-conscious consumers, contributing to its status as the leading single-serve non-alcoholic beverage manufacturer in terms of dollar and unit growth.

Approximately 50% of Olipop's growth is attributed to new consumers entering the market, indicating a shift in purchasing behaviour within the beverage sector.

The funding will be directed towards product development, marketing expansion, and diversification of distribution channels, allowing Olipop to reach a broader consumer base across the US.

Currently, Olipop products are available in nearly 50,000 retail locations, including major chains such as Walmart, Target and Whole Foods Market.

In addition to its growth trajectory, Olipop has recently conducted human clinical trials that suggest its products may aid in blood sugar stability and metabolic health.

This aligns with the brand's commitment to not only providing a healthier alternative to soda but also making its products accessible through health insurance networks under 'food as medicine' initiatives.

The Series C round marks a significant milestone for Olipop, particularly as it follows the company's achievement of profitability in early 2024. The investment from JP Morgan validates Olipop's business model and reflects a broader trend in the beverage industry towards health-focused products that meet changing consumer preferences.

Christopher Dawe, managing partner at JP Morgan Growth Equity Partners, said: “The brand's authenticity, mission-driven team and enormous market opportunity resonated with us. We look forward to supporting Olipop through its next phase of growth.“ Dawe will join Olipop's board of directors as part of the funding agreement.

As part of the restructuring following this funding round, Olipop has announced the appointment of Mel Landis, a former Coca-Cola executive, as its new president. Landis brings over three decades of experience in the beverage industry and will play a crucial role in guiding Olipop through its next phase of growth.

Co-founder David Lester will transition to an advisory role on the board, marking a shift in leadership as the company aims to solidify its position in the competitive beverage landscape.