036: We Built a $20 Million Soda Company in 5 years

—Welcome to Startup Gems, where we find undiscovered startup growth hacks, stories and case studies from every random nook and cranny of the internet.—

—Whether you're a seasoned entrepreneur, an aspiring startup expert, or simply someone seeking inspiration, Startup Gems is your source for the stories that ignite the flames of innovation.—

—In this episode, we'll be delving into the journey of Olipop's founders, Ben Goodwin and David Lester, and uncovering the three fundamental principles that propelled their success.—

—First, we'll explore the principle of Innovation and Market Perception, understanding how Olipop identified a unique opportunity in the declining soda market and turned it into a thriving business. Then, we'll delve into the concept of Persistence and Learning from Failure, showcasing how Ben and David's ability to adapt and evolve after initial setbacks led to their ultimate triumph. Lastly, we'll discuss the significance of a Customer-Centric Approach, emphasizing the crucial role customer feedback and product quality played in Olipop's meteoric rise.—

—My name is Chris Koerner, your host, and I’d like to introduce you to Olipop. It's this soda company that started back in twenty eighteen by two guys named Ben Goodwin and David Lester. They had this crazy idea to create a delicious soda that was actually good for you - you know, gut-healthy, full of fiber, and low in sugar. Sounds impossible, right? But they were determined.—

—So, they launched Olipop, a prebiotic soda made from eight plant-based ingredients to support digestive and gut health. At first, they were just in 40 grocery stores in Northern California, making a modest revenue of eight hundred fifty two grand in their first year. But man, did things change quickly.—

—Fast forward to twenty twenty two, Olipop's gross revenue shot up to 73 point 4 million dollars , and it's projected to surpass 200 million dollars in sales by the end of twenty twenty three. How did they do it? Well, it all started with a hundred grand investment - the initial capital that Ben and David put into Olipop.—

—Ben Goodwin, a guy from San Francisco, had struggled with weight issues since he was young. He decided to switch to a healthier lifestyle and got into the whole nutrition scene. David Lester, on the other hand, was working at a big spirit company in London but got fed up with the corporate life. They met through a mutual connection and bonded over their shared passion for healthier beverages.—

—Their first attempt, a probiotic soda called Obi, didn't take off as expected. They sold the company in twenty sixteen but didn't give up. They learned from their mistakes and, armed with new research on gut health, they decided to try again. And that's how Olipop was born.—

—It took them two years of hard work to perfect their new soda recipe. They put their hundred grand investment into action, spending around 70 grand on branding and thirty grand on formulating the product for mass production. But here's the catch - nobody believed in them. Most investors thought a healthy soda was a stupid idea, especially in a declining soda market. But Ben and David saw an opportunity.—

—They focused on making Olipop taste like traditional sodas but with way healthier ingredients. And when it came to branding, they settled on the name Olipop, referencing soda with 'pop' and a type of fiber with 'Ollie'. Smart, right?—

—Getting Olipop on the shelves was a challenge. They had to pre-sell their product to a hundred stores to convince a distributor to work with them. Ben and David hit the road, personally talking to store owners and managed to pre-sell to about 40 or 50 stores. That was enough to convince the distributor, and Olipop finally hit the market in twenty eighteen with flavors like Ginger, Strawberry Vanilla, and Cinnamon Cola.—

—From there, Olipop's popularity just exploded. By twenty twenty two, when they were making 70 plus million dollars in gross revenue, their drinks selling like crazy - they sold approximately 50 million cans within the year. They kept innovating, introducing new flavors, and reducing sugar content drastically compared to regular sodas. And guess what? They're not stopping anytime soon.—

—Their success story is a testament to their resilience, creativity, and a bit of luck. Now, Olipop is everywhere - over 23 thousand stores across the US, and they're aiming for even more. They've got celebrities investing in them, and their social media game is strong, especially among Gen Z and millennial users. Who would've thought a healthy soda could make it big? But here we are, witnessing the rise of Olipop. Exciting, isn't it?—


—Now, We're going to uncover three key principles from their journey and discuss how any business owner can apply these principles to achieve success in their own ventures.—

—Principle 1: Innovation and Market Perception—

—Olipop's founders, Ben Goodwin and David Lester, saw an opportunity where others didn't. They believed in creating a healthy soda when the soda market was declining. Here's how you can apply this principle to your business:—

—Stay Curious: —

—Continuously research and stay informed about market trends and emerging consumer needs. Keep an eye on what's working and what isn't. This can help you identify untapped opportunities in your industry.—

—Think Differently:—

— Don't be afraid to challenge the status quo. Look for ways to innovate and create products or services that address customer pain points in a unique and valuable way. Sometimes, thinking outside the box is what sets you apart.—

—Principle 2: Persistence and Learning from Failure—

—Ben and David's first attempt with Obi didn't pan out as they hoped, but they didn't give up. They learned from their mistakes and came back stronger. Here's how you can incorporate this principle into your business:—

—Embrace Failure: —

—Understand that failure is a part of the entrepreneurial journey. Instead of seeing it as a setback, view it as an opportunity to learn and improve. Analyze what went wrong and adjust your strategies accordingly.—

—Adapt and Evolve: —

—Be flexible and willing to pivot when necessary. Your initial idea may not be the one that leads to success, but being open to change can lead you in the right direction.—

—Principle 3: Customer-Centric Approach—

—Olipop focused on meeting customer expectations while offering a healthier alternative to traditional sodas. Their dedication to taste and nutrition made them stand out. Here's how you can prioritize your customers in your business:—

—Listen Actively:—

— Pay close attention to customer feedback. Engage with your customers through surveys, social media, or direct communication. Use their insights to make improvements and tailor your products or services to their needs.—

—Quality Matters: —

—Ensure that the quality of your offerings is top-notch. Going the extra mile to provide value and meet or exceed customer expectations builds trust and loyalty.—

—So, there you have it, three key principles that drove Olipop's remarkable success: Innovation and Market Perception, Persistence and Learning from Failure, and a Customer-Centric Approach. Remember, these principles aren't exclusive to Olipop. They can be applied to any business, regardless of size or industry, to pave the way for growth and prosperity.—

—Thank you for being part of today's adventure through the world of startups and innovation. Did this episode ignite any fresh perspectives or ideas? Share your reflections and favorite takeaways in a review wherever you’re listening now. Remember to stay curious, continue to forge your own path, and subscribe and follow Startup Gems to be the first to access stories that will fan the flames of your entrepreneurial passion.—