Sports performance drink maker X2 has announced the close of a $16 million round of Series D financing led by L Catterton and highlighted by participation from NFL running back Saquon Barkley.
What is X2?
The New Jersey-based company, a division of Advanced Bio Development, has been around since 2013, but its recent resurgence has been fueled by an influx of new investment, most notably via NBA star Kawhi Leonard and NLP Ventures. The company offers a suite of clean ingredient, NSF Certified for Sport products, including electrolyte-packed energy drinks, pre- and intra-workout powders, and shots — aimed at health conscious “everyday” athletes that range in functionality from hydration to recovery and endurance.
Behind the scenes, X2 has recently been busy restructuring its management team under the leadership of CEO Mark French, who arrived in the role last November. Last month, the company announced new hires across key strategic roles, adding Scott Greene as EVP of Finance & Operations, and Dave Cohen as EVP of Marketing & Strategic Partnerships. Elsewhere, Jim Block, formerly of MillerCoors distributor InBev USA, has taken the reins as VP of Sales, while David Benoit will lead integration of sports and entertainment marketing projects.
Answering questions via email, X2 CEO Mark French said that the new funds will support “aggressive growth” as the company seeks to add new products in the fall and boost its distribution (including DSD in some “key markets”) and marketing. The company’s current roster of retail partners includes CVS, Subway, GNC and Amazon, as well as over 25 professional teams across the NBA, NFL, NHL and Major League Baseball.
Who is investing in the brand?
Having added Leonard to its cap table (and board of directors) last year, X2 has secured another blue chip athlete in Saquon Barkley of the NFL’s New York Giants. The 24 year-old New York City native, who broke out as the NFL Offensive Rookie of the Year in 2018, also counts Pepsi as one of his sponsors. Lavonte David of the Tampa Bay Buccaneers is also an investor and ambassador.
“I have been a big believer in X2’s line of clean products for a long time because it gives me sustained energy and there is no crash or jitters, like many other products,” Barkley said in a press release. “I am very selective of brands I endorse and even more selective of companies I choose to invest in. X2 checks all the boxes for me; amazing product, filling a void in the marketplace and a stellar leadership team.”
Though Barkley is the big name in this round, the raise was led by L Catterton, billed as the world’s largest consumer-focused private equity firm. The group, which acquired food brand Kodiak Cakes earlier this year, has previously backed brands like Peloton and Naya Waters, and has been an investor in X2/Advanced Bio Development since 2013, according to its website.
Outside of Barkley, X2 has also added a range of new investors from the world of sports business and media. Other participants in this round include ESPN NFL analyst Adam Schefter; Mike Levine, co-head of CAA Sports; Charles Baker, co-chair of O’Melveny’s Sports Industry Group; Dan Mannix, founder of LeadDog Marketing Group and former CEO of CSM North America; and sports agency Stoked Management CEO Lowell Taub. Former NBA player Josh Childress, CEO of Landspire Group, is also onboard.
The company is also adding two new members to its board of directors. Gregg Parise, managing partner at California-based PE group Sweetwater, which participated in this funding round, will be joined by Eric Foss, a former chairman and CEO of Pepsi Bottling Group and Aramark.