Prebiotic beverage maker Olipop has secured nearly $10 million in Series A funding, the company’s first major financing round.
Launched in the San Francisco Bay Area in 2018, Olipop said it has built a loyal consumer base through its sodas formulated with prebiotics, plant fibre and botanical extracts.
Participants in the round include Monogram Capital Partners, Rocana Ventures, Finn Capital Partners, Boulder Food Group and Collaborative Fund – all current investors in Olipop that have chosen to increase their stakes. Other new strategic investors include Döhler Ventures and Terpsi Capital.
With its new financing, Olipop will focus on sales and marketing, product innovation, its direct-to-consumer business and strengthening the appeal and awareness of digestive health across the US.
This month, the brand started shipping its fourth flavour, classic root beer, joining other variants strawberry vanilla, cinnamon cola and ginger lemon.
“In 2019, it was important for us to firmly establish our brand in the western half of the US,” said David Lester, Olipop co-founder and president.
“We wanted to test our growth drivers and supply chain before expanding the beverage nationally. We were fortunate enough to be able to turn down potential distribution opportunities and still grow the business significantly. Now we’re in a position to start sprinting.”
He added: “We’re excited for 2020 and the opportunity to define and lead the growth of the digestive health section in grocery stores across the country.”
Olipop digestive tonics are sold in 12oz aluminium cans and are available in retailers such as Whole Foods Market and Wegmans.
© FoodBev Media Ltd 2019