OLIPOP is a rapidly growing “healthy soda” brand seeking to disrupt the soda industry with a better-for-you alternative.[1] Through innovation in digestive research, the company combines science and natural ingredients to create prebiotic sodas so customers can indulge in sweet cravings without compromising their health.[2] While its brand and product alone demonstrate dedication to health and wellness, OLIPOP’s recent transition to a B Corp reflects its deep commitment to a better society.[3] Co-founder Ben Goodwin states this transition was on par for the company, which has been a mission-driven endeavor since its inception.[4]
Becoming a B Corp
To become a certified B Corp, companies typically must change their legal framework, which can vary depending on the company’s specific legal entity.[5] The framework required for corporations is a stakeholder governance model, in which companies have a legal obligation to all stakeholders, not just shareholders.[6] Shareholders are those with ownership and financial interest in the company, while stakeholders include anyone who may be impacted by a company’s decisions, including employees, suppliers, customers, and community members.[7] By requiring a broad commitment to all stakeholders, companies can circumvent traditional issues involved with a sole focus on profit maximization.[8]
Companies must also complete an annual B impact assessment, focusing on five categories: customers, community, workers, governance, and environment.[9] Any company earning a score over 80 on their impact assessment qualifies for B Corp Certification.[10] B Corporations demonstrate ongoing transparency by releasing public information about their performance and are required to re-certify every three years.[11] Since making this transition in July of 2023, OLIPOP has earned an Impact Score of 91 and boasts its biggest gains in managing its people, product, and the planet.[12]
People
OLIPOP earns over 30% of its Impact Score through its commitment to employees, including financial security, health, wellness and safety, career development, engagement, and satisfaction.[13] As a fully remote company, they offer significant benefits like unlimited PTO, paid parental leave for primary and secondary caregivers, and a free life insurance policy.[14] Co-founder Ben Goodwin explains that by investing in human growth, they can promote internally and create an enriching culture.[15] Furthermore, they promise 99% paid medical, dental, and vision, 401K with company match, and over 20 paid hours of community service annually.[16]
Product
To back up their gut health claims, OLIPOP attained a NutraStrong certification, which ensures that the ingredients listed are truly representative of the product.[17] While the company prioritizes the healthfulness of the soda itself, it also ensures that all the steps of its processes have a positive impact.[18] OLIPOP invests 80% of its costs of goods sold within the United States, and sources anywhere from 25-49% of its materials from companies with third-party social or environmental certification.[19] Additionally, it is currently conducting a life cycle analysis throughout its supply chain with the goal of incorporating more recycled content in its packaging and sourcing more local ingredients.[20]
Planet
Lastly, OLIPOP made its largest contribution to its Impact Score and the environment by investing in sustainable management practices.[21] Specifically, they are committed to using 50-74% of recyclable or biodegradable materials in their packaging.[22] A new focus is regenerative agriculture, which involves reducing carbon footprints, restoring soil health, and improving the water cycle through land restoration.[23] OLIPOP also frequently contributes to an online blog, promoting articles addressing social and health issues, and donates 1% of every sale to the American Land Farm trust, Partnership for a Healthier America, Common Threads, or Trees, Water, and People.[24]
The Future of OLIPOP
OLIPOP’s success has been explosive since its beginnings in 2018, and the co-founders are expecting more growth as they embrace new innovative marketing strategies and product development.[25] However, the prebiotic soda market has been impacted by a class-action lawsuit filed against rival Poppi, claiming false advertising of the true health benefits.[26] Despite these claims, OLIPOP has seemingly avoided similar controversy by retaining brand loyalty through formula differentiation and emphasizing its credibility with third-party verifications.[27] Furthermore, OLIPOP has broken into the exclusive stadium market by partnering with three stadiums, most recently serving as the “official functional beverage” for The Inuit Dome.[28] OLIPOP surpassed A&W as the best-selling root beer in the United States and is on track to exceed $200 million by the end of 2024, demonstrating its commitment to people, its product, and the planet has started to pay off.[29] We will provide additional B Corp case studies in future posts on the Forum for Entrepreneurship & Law.
[1] See OLIPOP: Overall B Impact Score, B Lab (last visited Nov. 3, 2024), https://www.bcorporation.net/en-us/find-a-b-corp/company/olipop/.
[2] Id.
[3] Id.
[4] Esha Chhabra, OLIPOP Merges Profit and Purpose With $200 Million In Sales And A New B Corp Certification, Forbes (Nov. 21, 2023, 9:17 PM), https://www.forbes.com/sites/eshachhabra/2023/11/21/olipop-merges-profit-and-purpose-with-200-million-in-sales-and-a-new-b-corp-certification/.
[5] Miranda Fraraccio, A Complete Guide to Starting a B Corp, U.S. Chamber of Commerce (Sept. 26, 2024), https://www.uschamber.com/co/start/strategy/b-corp-advantages-and-requirements.
[6] The legal requirement for Certified B Corporations, B Lab (last visited Nov. 3, 2024), https://www.bcorporation.net/en-us/about-b-corps/legal-requirements/.
[7] Caroline Banton, Shareholder vs. Stakeholder: What’s the Difference?, Investopedia, (June 14, 2024), https://www.investopedia.com/ask/answers/08/difference-between-a-shareholder-and-a-stakeholder.asp#toc-understanding-the-role-of-the-shareholder.
[8] The legal requirement for Certified B Corporations, supra note 6.
[9] Fraraccio, supra note 5.
[10] OLIPOP: Overall B Impact Score, supra note 1.
[11] Fraraccio, supra note 5.
[12] See OLIPOP: Overall B Impact Score, supra note 1; see also OLIPOP Achieves B Corp Certification: Learn About Our Commitment to a Better Future, OLIPOP (May 31, 2024), https://drinkolipop.com/blogs/digest/olipop-achieves-b-corp-certification?srsltid=AfmBOoocEK961iD3CfrlQrFp_Bk_tvVS2kh-uoRSDHUgfMahA5uEbl0u.
[13] OLIPOP: Overall B Impact Score, supra note 1.
[14] Build a New Future, OLIPOP (last visited Nov. 3, 2024), https://drinkolipop.com/pages/careers.
[15] Chhabra, supra note 4.
[16] OLIPOP Achieves B Corp Certification, supra note 11.
[17] Chhabra, supra note 4.
[18] OLIPOP Achieves B Corp Certification, supra note 11.
[19] Id.
[20] Id.
[21] OLIPOP: Overall B Impact Score, supra note 1.
[22] OLIPOP Achieves B Corp Certification, supra note 11.
[23] OLIPOP’s Commitment to Regenerative Agriculture: A Future Rooted in Sustainability, OLIPOP (Oct. 22, 2024), https://drinkolipop.com/blogs/digest/olipop-commitment-to-regenerative-agriculture.
[24] Sustainability Engineered into Every Can, OLIPOP (last visited Nov. 3, 2024), https://drinkolipop.com/pages/sustainability#:~:text=Environmental%20Initiatives,proactive%20greenhouse%20gas%20emission%20management.
[25] Gabriele Regalbuto, Single-serve soda brand outperforms Coke, Pepsi, outsells eggs at various household retail locations, FOX Business (July 27, 2024, 4:38 PM), https://www.foxbusiness.com/retail/single-serve-soda-brand-outperforms-coke-pepsi-outsells-eggs-various-household-retail-locations.
[26] See Joseph Lamour, Poppi prebiotic soda brand faces class-action lawsuit over gut health claims, TODAY (June 4, 2024, 3:44 PM), https://www.today.com/food/news/poppi-lawsuit-prebiotic-soda-rcna155422.
[27] See Alexandra Frost, Poppi lawsuit turns attention and scrutiny to the prebiotic beverage industry, Retail Dive (July 2, 2024), https://www.retaildive.com/news/poppi-lawsuit-turns-attention-scrutiny-prebiotic-beverage-industry/720358/.
[28] Katie Deighton, Olipop Breaks Into the Exclusive World of Stadium Soda, Wall Street Journal (Aug. 15, 2024, 6:00 PM), https://www.wsj.com/articles/olipop-breaks-into-the-exclusive-world-of-stadium-soda-6bf3710c.
[29]See Morgan Smith & Lauren Shamo, How Olipop’s founders turned a $100,000 investment into a ‘healthier’ soda brand bringing in $20 million a month, CNBC, (Sept. 16, 2024, 10:00 AM), https://www.cnbc.com/2023/09/16/how-olipops-founders-turned-100k-investment-into-healthier-soda-brand.html.