Olipop, Erewhon’s Favorite Soda Brand, Raises $30 Million to Expand Nationally

Molly Wright

Molly Wright is an intern for dot.LA. She previously edited the London School of Economics' student newspaper in the United Kingdom, interned for The Hollywood Reporter and was the blogging editor for UCLA's Daily Bruin.

Olipop
Image courtesy of Olipop
From CBD-infused sparkling waters to herbal tonics, there is no shortage of startup soda brands pitching healthy alternatives to the long-dominant “Big Soda” industry. One brand, Olipop, has gained notable traction in Los Angeles—having made its debut at one of L.A.’s buzziest grocers and assembled an enviable cadre of celebrity backers.

On Tuesday, Olipop unveiled a new $30 million Series B funding round led by Monogram Capital Partners, the Beverly Hills-based venture capital firm that focuses on consumer and retail businesses. Joining Monogram is a slew of big-name investors including pop star Camilla Cabello, all three of the Jonas Brothers, actress and comedian Mindy Kaling and Goop lifestyle mogul Gwyneth Paltrow, as well as founders and executives from the likes of PepsiCo, TikTok, Equinox and Shake Shack. The funding values Olipop at $200 million, according to the startup.

Though based in Oakland, Olipop has established close ties in the L.A. community. Launched in 2018, the soda brand first appeared on the shelves of trendy organic supermarket Erewhon, where it quickly became one of the top-selling drinks. (Olipop has since expanded to larger chains like Whole Foods, Kroger and Sprouts.)

“We wouldn’t be where we are right now without the L.A. ecosystem jumping on board,” Olipop head of new business development Steven Vigilante told dot.LA. “Hopefully we can replicate that in the rest of the country.”

The brand has sought to capture the nostalgia of cracking open a Coke—it offers soda fountain-era flavors like Vintage Cola and Classic Root Beer, as well as fruitier twists like Strawberry Vanilla—without the artificialities that accompany traditional sodas. Olipop’s combination of prebiotics and unorthodox ingredients like Jerusalem artichoke, chicory root and slippery elm bark creates a mixture that is relatively low on sugar and calories while rich in fiber. (Each can contains two-to-five grams of sugar, 35-to-45 calories and up to nine grams of fiber.)

Monogram saw the potential in a better-for-you soda alternative and considered Olipop to be a first mover in the space, according to Jared Stein, a partner at the Beverly Hills-based VC firm. The Series B is Monogram’s third investment in the company, after it participated in the startup’s seed round and led its $10 million Series A in 2020.

“We saw a massive market-size opportunity in soda,” Stein told dot.LA. “Olipop’s flavor profile fits much more closely towards soda—which becomes important when you think about not just reaching your customer in a Whole Foods on the coast, but being able to convert a longtime soda drinker in the middle of the country who’s more value-focused in terms of price point.” (Olipop sells for $2.49 per can at retailers like Target.)

Olipop plans to use the Series B funding to grow its team, develop more flavors and products and expand its ecommerce and wholesale channels. The brand also plans to ramp up its marketing presence through both a national TV ad campaign and online channels like TikTok, where an influencer-led campaign is in the works.

“It took us three years to get to 8,000 stores by the end of 2021, and we’ll be in 19,000 [stores] by June of this year,” Vigilante said.

mollywright@dot.la

Subscribe to our newsletter to catch every headline.

LA Tech ‘Moves’: Mapp Gains New CPO and CTO, Prodoscore Taps Boeing Exec

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

LA Tech ‘Moves’: Mapp Gains New CPO and CTO, Prodoscore Taps Boeing Exec
LA Tech ‘Moves’:

“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.

***

Read moreShow less

This Week in ‘Raises’: GITAI Lands $30M, Steno Gains $15M

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Raises
Image by Joshua Letona

A local space robotics startup raised fresh funding to expand the flight model manufacturing facilities throughout the U.S. and increase employment, while a remote litigation platform raised more funding to continue growing its footprint in new markets across the country, develop service channels for its clients and continue expanding its tech team.

***

Read moreShow less

Gitai Raises $30 Million to Expand Manufacturing Footprint in Los Angeles

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Gitai Raises $30 Million to Expand Manufacturing Footprint in Los Angeles
\u200bPhoto: Gitai

Space robotics company Gitai raised a $30 million Series B extension this week, bringing the total value of the round to roughly $47 million.

The funding will be used to further develop Gitai’s suite of space robots as well as build out its manufacturing footprint in Torrance. Previously Gitai announced it raised a $17.1 million Series B in March 2021; this additional raise is still part of that round.

Read moreShow less
https://twitter.com/samsonamore
samsonamore@dot.la
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending