(Bloomberg) -- Soda startup Olipop Inc. is set to hit about $500 million in sales this year, more than double the $200 million it generated in 2023, as its healthier take on sugary drinks wins over more customers.

The company generated less than $1 million in revenue in 2019, according to co-founder David Lester. And now it’s also profitable, he said. That’s a rare feat among young food and beverage companies, no matter the popularity of the product.

“This year we’ve been profitable every month,” Lester said. “That’s been a clear strategy for us from the beginning, not to compromise on top line growth, but stand on our own two feet.”

That said, the company hasn’t ruled out raising more money, noting that it’s an expensive category to compete in. Olipop has garnered just over $55 million in investments and had a valuation of around $200 million at the end of 2021. Investors include celebrities such as Gwyneth Paltrow, the Jonas brothers and Mindy Kaling, as well as former PepsiCo Inc. Chief Executive Officer Indra Nooyi.

Olipop makes soda with less sugar than traditional brands. It also adds prebiotics and fiber, it says, to boost gut health. It’s part of a growing category of brands often dubbed “healthy” soda.

Sweetgreen to Wawa

The company started selling in a handful of independent stores in Northern California in 2018 and then really took off when it landed on shelves at Erewhon, a health food market in Los Angeles with a cult-like following. Within a few months, its strawberry vanilla flavor was the second-most popular beverage, trailing only water, Lester said.

“Even the most uber health consumer in LA has a taste for soda,” Lester said he realized of that early success. After that, the company got distribution in grocery stores Whole Foods and Sprouts. It’s now sold in more than 30,000 retailer and restaurant locations, with customers ranging from Sweetgreen to Wawa.

Lester declined to comment on any speculation around acquisitions, but said they’re not actively in those conversations. “Our focus is on growing this brand,” he said. “I’ve been in brands where you feel like you’re dragging it to growth. This one, we’re chasing the growth. It’s out ahead of us.”

(Updates fourth paragraph with year of valuation)

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