Powdered hydration mix maker Liquid I.V. has raised $5 million in a strategic funding round backed by numerous celebrities, the company announced this week.
The round was led by Liquid I.V. CEO Brandin Cohen, who has invested his own money in the brand, alongside prior investor and music business executive Scooter Braun. First-time individual investors includes a parade of “bold types”: Demi Lovato, Kevin Hart, Kendall Jenner, Haily and Justin Bieber, James Corden, Gary Vaynerchuk, Usher, DJ Khaled, Steve Aoki, Patrick Schwarzenegger, Maria Shriver, Yes Theory, Freddy Wexler, Jake Kassan, Elle and Ross Walker, and Moiz Ali. The laundry list of celebrities gives Liquid I.V. access to influencer platforms that reach millions of consumers worldwide.
Speaking with BevNET, Cohen said the round was unexpected as Liquid I.V. had just raised $5 million in a Series B round last August. But in December, Cohen said Braun reached out to him in a text message reading “Yo, you’re killing it. Let’s blow this thing up even more.” Cohen and Braun spent several months reaching out to individual celebrities who were familiar with the brand.
“We decided if we could bring together these big name people who are in their own sectors changing the world and making an impact, then how cool would it be for the brand to leverage that platform?” Cohen told BevNET. “We were really selective with who we wanted to bring in and why we wanted to bring them in. We wanted to make sure they loved the product and that they were passionate about it. It came together pretty quickly once we decided to do that and we pushed the gas pedal.”
According to Cohen, the celebrity investors will work to promote the brand in a number of ways. DJ Steve Aoki, he said, frequently travels around the world for performances and will aid in brand outreach. YouTube and Instagram influencer brand Yes Theory, which advocates for consumers to take risks by “saying yes” to new experiences, may be able to promote Liquid I.V. on its platform.
Others, such as actor Patrick Schwarzenegger — son of Arnold — will work with the company in its social missions, which include aid trips to Puerto Rico. Next year, Cohen said Liquid I.V. plans to increase its social mission efforts by creating a foundation that will work to provide hydration and medical supplies in Nepal.
The raise comes as Liquid I.V. continues its omnichannel retail expansion. According to Cohen, the brand is currently available in about 20,000 retail locations nationwide and plans to surpass 30,000 next year. Liquid I.V. is also available online on Amazon and the brand’s website. Cohen said the brand is on trajectory to surpass $100 million in annual revenue by the end of tis fifth year.
In addition to a strong retail strategy — which includes retailers such as Whole Foods, Costco, CVS, Albertsons, and Hudson News — Liquid I.V. has partnered with Spartan Race to sample at the endurance fitness brand’s events.
In February, the brand began introducing new functionalities with a sleep aid line, which uses its signature Cellular Transport Technology (CTT) that the company says helps the consumer to better absorb water and functional ingredients into their bloodstream.
Liquid I.V. now plans to launch a “green energy” line, Cohen said. The line will be available online in the fourth quarter of 2019 and begin rolling out to retail accounts in 2020.
“We’re developing a 360 degree wellness brand,” Cohen said. “Obviously hydration is so crucial and has been our flagship product and growth driver by far, but we want to utilize our science to help people in all aspects of life. Whether it’s sleep, energy, or other products in the future. The more we can grow the business in those key channels — retail and online — the more we can also give back.”