As businesses worldwide feel more urgency to improve their environmental sustainability standards, carton-packaged water brand Boxed Water says it is doing better than ever.
Founded in 2009 as Boxed Water Is Better, the Michigan-based brand has served as a pioneer of the carton-packaged water space that has in the intervening years seen competition emerge from rivals boasting their own sustainability narratives within the space for better-for-the-planet packaging. Yet the brand momentum is still growing: according to chief revenue officer Rob Koenen, Boxed Water’s focus on non-traditional retail channels has put it on track to double its revenue from last year in 2022, while it has been restructuring personnel and resources to service that growth long-term.
“We’ve been around for 13 years, so we like to say it’s because of all the work we put into it, but I also think it’s just that we’re at the right place at the right time,” Koenen said.
Though Boxed Water has been primarily promoted to individual consumers, shifting attitudes and priorities in corporate America have helped to redefine the brand’s place in the market. A December report by Harvard Business Review stated that 2021 was a breakout year for ESG initiatives as “[v]irtually all of the world’s largest companies now issue a sustainability report and set goals,” and that over 2,000 companies have set carbon reduction targets, concluding that corporate environmentalism is “clearly not fringe anymore.”
“Literally we get people calling, saying, ‘It came down from the board of directors that we have to improve our ESG score, can you help us?’ And we’re like, ‘Of course we can,’” he said.
That growth has come against a changing backdrop: brands like JUST Water and Flow Alkaline Spring Water also offer paper-based packaging, while Liquid Death (cans), PATH (reusable aluminum bottles) and ZenWTR (ocean-bound recycled plastic) have pushed the concept further.
Koenen compared Boxed Water’s recent surge to its patient approach, noting that the brand has benefitted from its longevity and a strong team with an eye towards nurturing long term talent and promoting from within. He suggested Boxed Water is attracting attention thanks to its emphasis on its environmental mission work such as planting trees.
Boxed Water’s response has been to target consumers outside of grocery and convenience, a strategy which Koenen said opens different usage occasions and helps the brand stand out against less direct competition. While CVS, Meijer and Kum & Go are among its top retail partners, he said alternative channels like travel, hospitality, zoos, boutique gyms, and beauty and fashion stores have been a big focus. Last year, Boxed Water became the exclusive in-flight water partner for Alaska Airlines, followed more recently by another exclusive placement in SoulCycle studios nationwide. The company is also sold at fashion retailers rust & bone and AG Jeans, both of which are also corporate customers.
“We pick our spots and we support traditional retail where it’s appropriate,” he said. “We’re not going after national chains as much as we’re going store by store where the retailers want to support us.”
To meet rising demand, Koenen said the brand is moving to support the business with a new funding round being overseen by Greenwich Capital Group, while also working to quadruple its manufacturing square footage and double its sales force by adding 11 new positions by the end of 2022. That expansion began earlier this year through a series of internal promotions, with John Rodgers and Jack Vaughan named as managing directors for West and East, respectively. Additional promotions are set to follow, and Boxed Water now intends to backfill those employees’ prior positions, Koenen said, in addition to creating new roles, including an associate sales coordinator.
Among the new regional positions will be sales leads for Texas, the Pacific Northwest, New England, the Mid-Atlantic, and Midwestern states such as Missouri, which Koenen said has become a strong market for Boxed Water.
Other recent promotions include Mandy Cech, who was named senior marketing manager, and Maggie Capisciolto is now senior digital sales & customer engagement specialist. Cech and Capisciolto primarily oversee Boxed Water’s ecommerce business, which grew over 400% year-over-year, according to the company.
Meanwhile, the ongoing expansion of its facility has led to two new production lines and eight new operations team hires so far, with more filtration and packaging equipment to be added later.
Koenen also acknowledged challenges from private label providers creating products with similar packaging as Boxed Water’s white cartons and said the company has engaged in legal action to protect itself from trade dress infringements and alleged impersonation. Although no lawsuits have been filed, he said the company has come to an agreement with at least one private label manufacturer to settle the dispute out of court. As for Boxed Water’s sales, he said the company doesn’t offer private label as part of its efforts to protect the brand integrity and grow awareness.
Brand identity has long been a sticking point for Boxed Water. Last year, the company filed a request with the U.S. Patent and Trademark Office (USPTO) to register the name “Boxed Water.” The company already had marks for “Boxed Water Is Better” and “Boxed Water” with a raindrop icon included, but prior attempts to trademark the shortened name found that it was “merely descriptive.” The company filed an appeal earlier this year, but Koenen said the process is still ongoing. However, Boxes Water has received approval to use the shortened name (sans raindrop) with a trademark symbol in marketing materials while awaiting a final confirmation.
“Our opinion on private label is that our brand has value,” he said. “Just like how Fiji or Coca-Cola will not do private label, because consumers are happy to see Coca-Cola and not an off brand cola, when they open up the refrigerator at the resort they’re at. They’re just as happy when they see Boxed Water Is Better and not some cheap brand that’s either private labeled with plastic or frankly a cheaper carton.”