Olipop Leads CPG Sector Into ‘New Wave’ of Digital Transformation

The landscape of consumer-packaged goods (CPG) has changed dramatically in the past decade. What once seemed like an unbreakable monopoly of giants like Coke, Pepsi, and Colgate-Palmolive, is now a hotbed of innovation.

New brands are rising through the ranks by directly engaging with customers in new ways. At the heart of this transformation is Craig Shapiro, co-founder and managing director of Collaborative Fund, an investor who has been guiding startups in breaking down traditional barriers and leveraging the latest digital tools.

Shapiro’s insights into the power of direct-to-consumer (D2C) models, artificial intelligence (AI)-driven personalization, and the importance of community reveal a new blueprint for success in the consumer goods market.

Tech-Driven Changes in CPG

“The digital transformation of being able to distribute and sell directly, we’re seeing a new wave of that,” Shapiro said in an interview with PYMNTS, referencing the CPG market.

“The second is around data-driven personalization. Like that data-driven personalization we’re seeing within WHOOP and some others, I feel like is only the tip of the iceberg within the kind of broader digital transformation in the CPG world.”

But it’s not just about technology, Shapiro explained, highlighting the real secret to success lies in how new brands, like Olipop, are building tight-knit communities around their products. These are no longer just beverages or fitness trackers — they are identity markers.

“Olipop is one of the best, if not the best, at connecting with their community,” Shapiro said. “The idea of a functional soda didn’t exist when they were first getting started. It was like, ‘Wait, you’re going to create a prebiotic soda loaded up with all these great nutrients, but it’s also going to taste great?’ I feel like they created this new category, largely through building a community that has lifted that brand. Their revenue growth has been wild.”

Within six years, Shapiro said, Olipop has reached more than $500 million in revenue.

“I also think it’s riding the broader wave of consumer demand around better for you alternatives,” he added.

Fertile Ground for CPG Startups

This blend of technology and community is making it easier for smaller, more agile companies to compete with established giants, he said.

“A decade-plus ago, launching a CPG brand required a decent amount of capital,” Shapiro said. “Today it’s more of a startup ecosystem than 20 years ago, when we would’ve had to raise a lot more money. Today, you can get started on a shoestring.

“There’s so much more opportunity to sell to your customers. We’re seeing all forms of new distribution models emerging that are making CPG much more fertile ground for startups and more disruptive opportunities to take on incumbents.”

Existing players in the CPG sector are also pivoting to meet consumer needs and desires as the industry shifts, as PYMNTS has been tracking.

This environment of growth and accessibility is linked to the broader ecosystem of capital that supports innovation. While Shapiro focuses on the expansion of CPG startups, others are more focused on the macroeconomic trends that shape the market. Shapiro believes there will be “a lot of tailwinds in the market” in 2025.

“It feels like there is going to be less regulation,” he explained. “We’ve entered into a pretty exciting phase where it does feel like there’s enthusiasm a whole lot more, but I do think there is going to be liquidity that is essential to the ecosystem.”

Simplicity Triggers Success

Shapiro believes the biggest opportunities lie in spaces where friction and complexity converge, noting the most successful companies today are ones that make life easier — whether it’s reducing friction in eCommerce, enhancing personalization, or improving customer experience. For Shapiro, businesses that focus on these friction points and simplicity, leveraging AI and data, are the ones set for long-term success.

This focus on friction and simplicity is important when discussing the needs of early-stage companies, Shapiro said.

“The most successful startups that have broken through and gotten to scale really solve for that,” he said. “They just make life easier. When I see Shopify, it just makes life easier. I don’t have to enter all my information, saves my credit card, like the whole process. It just removes a lot of that friction. The same is true if you think back to Uber or Lyft, which in a way they’re mobility companies, but they’re really FinTech companies.”

For Shapiro, the real thrill comes from discovering entrepreneurs working on bold, transformative projects.

“What excites me is finding companies with large, ambitious goals,” he said.

One example is called Brimstone, a company he backed that is developing carbon-neutral cement by replacing limestone with a carbon-free calcium silicate rock. Not only is this innovation cheaper and abundant, but it also tackles one of the world’s biggest environmental challenges: the cement industry’s greenhouse gas emissions.

“When I think about 2025 and beyond, those are the things that get me really excited, reimagining or transforming some of these traditional industries in ways that are improving things, pushing the world forward,” he added.