3 lessons from a viral soda brand

Can you really use TikTok to build your brand into a money-making powerhouse?

Just ask OLIPOP, America's fastest growing functional beverage brand.

From the outside, it seems the better-for-you soda is popular because 1. It’s healthy, 2. It’s tasty and 3. It’s cute as heck.

But the market for new beverage brands is oversaturated. Prebiotic this, Seltzer that, no sugar alternatives to soda are popping up like mushrooms (reishi and cordyceps of course) and are fighting for their lives to make an impact.

So it's surprising to see the impact OLIPOP has had so far.

The brand has enjoyed triple-digit growth since its launch in 2017 and set to reach $200 million in sales this year.

But this hasn't happened by accident. The brand's incredible, rapid success is due to some very intentional drivers.

And their strategy obviously worked, which means you can apply the same tactics.

Recently, CEO Ben Goodwin sat down with Clara Ludmir from Forbes to discuss the keys to OLIPOP’s success.

Innovate based on research, not trends.

The CEO and cofounder emphasised the importance of not following trends. Instead, brands should rely on scientific research and building true credibility.

Back in 2017 when OLIPOP launched, the gut health market was highly competitive and it still is today. But Goodwin’s view of innovation came from his own personal journey with health.

He had a clear goal, which was to 'track the emergent microbiome research, see what clinically supported options there were, and build a Trojan horse of what was possible.'

How did OLIPOP do this? The brand used a team of human gut microbiome experts to translate research and findings into real product development.

This meant the soda was not one of the thousands on the market that was just a fad. Their researched-based approach anchored OLIPOP’s positioning as an evidence-based product.

The founders differentiated the product even further by deciding to not contribute to the considerable sugar crisis in the U.S.

Instead, Goodwin developed formulations with much less sugar, using OLISmart. This is a functional formula containing botanicals, plant fibres and prebiotics. Each of these has a proven positive impact on digestive health.

Tap into emotion to drive customer affinity.

And if you can take it beyond an emotional connection to linking your product to nostalgia, you've already won. People just love to reminisce, apparently. OLIPOP taps into this nostalgia by presenting it as joyful, colourful and with a touch of nostalgia.

Older generations have always associated soda with joy and comfort. But customers also enjoy discovery, which drove the development of their wide range of flavours. These flavours, which include like classic cola and root beer, also tap into that nostalgia.

OLIPOP's positioning is unique and a huge contributing factor to its success. Because despite being the healthier alternative to soda, Goodwin admits he doesn’t want the drinks to be labelled as just healthy, functional beverages. He believes this could harm the brand's likeability and customers' enjoyment of their drinks.

'Consumers don’t want to have the health-related information too broadcasted. There’s enough to know that the brand is healthy, so there is no need to add more: stressing too much the health component interrupts the indulgent part.'

So the cans mention the health benefits on the can subtly. But apart from that, the branding is focused on being cute and fun.

Diversify distribution to cater to a mainstream audience.

Starting in select stores, OLIPOP expanded from niche health retailers to mainstream national retailers. This meant they could move beyond the wellness category to reach a broader audience.

This is because OLIPOP didn't want to be a functional brand that only caters to health and gut enthusiasts. They want to speak to a mainstream audience that is aware of the negative consequences of drinking soda and wants to choose better.

In a few years, OLIPOP made it into Whole Foods, Walmart, Publix and Target as well as local healthy stores and food chains like Sweetgreen.

The brand also leverages DTC sales through its website. These actually represent a decent chunk of their sales, with 15-20% revenue coming from here. The role of this e-commerce channel is mostly for loyalty and retention. Most sales are driven by subscription, meaning the brand's fanbase of customers is strong.

When looking at OLIPOP's success, a huge lesson is that niche brands can often become too focused.

This can limit their appeal because so many consumers feel they don't fit that product's niche.

Brands can shoot themselves in the foot by becoming too targeted instead of casting a wide enough net for sustainable growth.

Brands that use research to drive innovation, create an emotional connection with their audience, and learn to balance their niche with the wider public may see a fraction of the same success OLIPOP has.

-Sophie, Writer