
Olipop talks growth, social media at Axios House
Prebiotic soda maker Olipop is betting on up-and-coming influencers — and its own competitors — to help the brand grow.
Why it matters: The prebiotic soda market is booming, with the world's biggest soda makers jumping into the race.
Driving the news: Olipop co-founder and CEO Ben Goodwin spoke with Axios during South by Southwest about the Oakland, California-based company's competition and marketing strategy.
What they're saying: "They've done us an enormous favor because they basically just put a big neon sign up saying: 'This is mainstream,'" Goodwin said of Coca Cola, Pepsi and Keurig Dr Pepper's recent move into the prebiotic soda lane.
The big picture: There's been an explosion of brands — wrapped in trendy, colorful packaging — like Olipop, Poppi, Culture Pop, Vina and Mayawell that make "functional" claims, usually related to gut health.
Olipop, for example, says its prebiotic, plant fiber and botanical extracts combination gives its sodas digestive health benefits. Olipop products are available at Walmart, Target and other major retailers.
The company was valued at $1.85 billion in its latest funding round, per CNBC.
Yes, but: The steep competition has come with its own drama.
Austin-based Poppi faced backlash in February over its Super Bowl marketing, which included sending personalized vending machines filled with Poppi to influencers.
Critics called it wasteful and out of touch, and competitor Olipop jumped in the fray, saying the vending machines "cost $25K each."
Poppi has disputed the pricing claim.
During SXSW, Goodwin declined to talk about Poppi's Super Bowl experience because he doesn't want to "mud sling," but discussed some lessons for brands using social media.
Goodwin said brands should make sure they're structuring their "messaging in a way that you are making your average, everyday consumer feel good about themselves and their life."
Olipop has tried to lean on first-time content creators and "everyday people," he added.
"That's an important piece of how we just try to work with customers in general — just really connect with them at the human level," Goodwin said. "I think brands would be wise to do that as much as they can."
The brand is also moving toward TV hits to gain slightly older customers, but "we'll always have a blend," of social media spots and television marketing, according to Goodwin.
What's next: Goodwin declined to say whether Olipop is pursuing an IPO.
"My eyes are on building to $1 billion in revenue" and keeping the company sustainable, he said.
"We've got some really great flavors coming out, some limited-time offerings and an enormous partnership that's going to land about two-thirds of the way through the year."
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