Since launching in the U.S. in 2015, Mexico-based isotonic hydration brand Electrolit has swiftly established itself as a versatile omnichannel player, establishing itself as the fourth-largest sports drink brand. Now, incoming Electrolit CEO Christian Patiño Webb said his goal is to aim higher.
The company named Patiño Webb, a former Red Bull marketing director and CPG industry veteran, as its new chief executive last week. Speaking with BevNET today, he said that as a Mexico City native, the brand “has been in mine and my family and friends’ lives for many, many years,” and as CEO he aims to capitalize on its international momentum to grow in emerging markets.
“Once [consumers] try the product, they stick to the product, it’s got pretty high loyalty,” Patiño Webb said. “We have been the fastest growing isotonic for five years in a row in the U.S., and the same story is happening in many other countries around the world. So on that end, there’s a lot of momentum.”
Based out of Texas, Patiño Webb arrived at the company from Unilever where he spent the past two years as VP of marketing for SmartyPants Vitamins. He said he was approached by Pisa Pharmaceuticals for the position and will oversee everything from global manufacturing to point of sale strategy. For the U.S. business, he will also work with Caridad Ochoa, who was named president and CEO of Electrolit USA in 2020 after previously serving as commercial director.
According to IRI, Electrolit grew 103.8% to $309.2 million in retail dollar sales for the 52-weeks ending June 12, 2022, placing it directly behind Powerade – up 3% to $1.25 billion – and well ahead of private label products, which were up 66.8% to $56.6 million in the same period.
As a sports drink, Patiño Webb said Electrolit is well positioned to take advantage of a fast-evolving category that has finally made room for new competition beyond longtime leader Gatorade. He noted that the brand is already a top-two product in select markets, including convenience stores in California and Texas, with other states like Florida gaining traction.
“Our goal is to continue growing and being in the top three, and then dealing with the long term being a top two [sports drink] in the U.S.,” he said.
The brand is currently available in over 65,000 doors nationwide (up from around 30,000 in 2020) and is serviced primarily through DSD distribution. Convenience has been and will continue to be the top priority, he said, with grocery serving as a strong secondary channel. A deeper expansion into club retail is currently in the works.
“Obviously, you have to prove that you’re ready to be at the club channel, but we’re having really good conversations with some of our potential clients and I would say those three [channels] at this point are the biggest ones,” he said.
However, as an isotonic hydration beverage, Patiño Webb said that sales have also come from consumers seeking hangover prevention as well as a general sickness and nausea treatment, as the product was originally intended. He noted that in the U.S., sales shot up in states experiencing extreme heat this summer as consumers sought out extra hydration to combat record high temperatures.
Positioned as a better-for-you brand, Electrolit’s U.S. growth has also benefited from a zero calorie line launched last year, he noted, and now intends to keep new innovations coming – including flavor extensions and improved functionality.
“The isotonic category in the U.S. hasn’t had a lot of innovation,” he said. “Yes, there has been zero calorie [products and] there have been a little bit of things here and there. But overall, if you compare it against other categories, there hasn’t been a lot of product innovation specifically. So I do believe the consumers may be very interested, and we’re working on that as we speak right now – different ways to provide that hydration and also to provide additional benefits.”
But whether the brand is working with pro athlete influencers, targeting Gen Z shoppers going out to party, or serving as a sickness salve, Patiño Webb said Electrolit is threading the needle between these occasions with the slogan “Instant Hydration,” which is being used in a national marketing campaign that launched this summer. While ACV is fast increasing, he noted that the brand is still functionally an early stage company from a U.S. perspective, but TV, transit and billboard ads are helping raise awareness stat.
“We did some research and we learned that consumers want that hydration, but they want fast. Either because they’re working out or if they were partying, or they have been out in the field at 100 degrees. They want that immediate hydration,” he said. “So that’s the reason why we decided to go with that message and we decided to keep it simple. Because we’re still early stage in the U.S. as a brand, it’s been less than 10 years, we’re still building a lot of awareness. And the best way to drive that awareness is by communicating a very clear, simple and strong-minded message to the consumer.”