Having established its place within a competitive category set, hydration drink brand Hoist is looking to push its business to the next level with the introduction of a new format, additional distribution partners and, ideally, a forthcoming influx of capital.
Founded in 2009, Cincinnati-based Hoist originally set out to create an adult version of Pedialyte without artificial sweeteners, preservatives or dyes. The isotonic beverage brand has reinvented and iterated its position several times over its lifecycle while maintaining its flagship formulation; however, co-founders Ben Schmidt and Kelly Heekin now believe that, if backed by the right group of strategic investors, the brand is well poised to continue growing.
“[We’ve been] having many talks and trying to find the right fit where it’s not just money, but an investor that comes in with an ability to help us get to the next level,” said Heekin. “Smart Money is what we call it.”
With the new capital hopefully on the horizon, Hoist plans to add a sales and distribution leader to its senior management team while also bolstering its sales team with more feet on the street. Its new pouch format, introduced late last year, will be built online for the time being while Hoist continues to drive velocity for its bottles in brick and mortar retail.
Hoist is currently distributed via a network of over 60 DSD partners and Schmidt said he expects that number to reach about 90 partners over the next six to eight months. The brand’s distribution footprint is concentrated around the middle of the country with Heekin explaining they expanded from inside the country outward, starting from its home state of Ohio. Though the brand is available in 30 over states across the country, Schmidt isn’t looking to expand to “corners” like the Northeast and West Coast.
“That’s by design, we know that there’s a strong population and a whole lot of sales that exist out in those corners, but it’s just a matter of getting there when indeed, we feel the brand is ready,” he said. “The plan really is just bolstering down where we are and expanding out strategically.”
Hoist has a unique approach to R&D, product testing as well as distribution, having served as the official partner of the U.S. Department of Defense (DOD) since 2018. According to co-founder Heekin, the military serves both as Hoist’s R&D inspiration and new product testing, explaining that all new innovations are first launched in the channel before they are made widely available. That process also comes with an easy, inherent marketing play and further strengthens its brand identity, he added.
That audience was the impetus behind the brand’s new powder sticks and pouches which launched exclusively for military personnel and are now available on the brand’s e-commerce platform. The products contain Hoist’s original formula but are more portable to help expand use-occasions, Heekin explained. The products were first deployed last year to the DOD and recently launched on Hoist’s e-commerce platform to begin testing with mass market consumers. The 8 oz. pouches come in Grape, Fruit Punch and Tropical Orange flavors and retail for $35 per 24-pack, while the 12-count stick packs are available in Grape, Fruit Punch and Peach flavors for $19.99.
Heekin said the biggest surprise has been the product’s traction with high school and college athletes. He noted that while many of these athletic departments have existing partnerships with large brands like Gatorade, Hoist’s team has received unsolicited outreach from those folks complimenting the product’s efficacy.
Heekin and Schmidt also acknowledged that the crowded hydration beverage space has forced them to focus and be strategic about how quickly they grow the brand especially in recent years. As more and more products enter the category, the team believes these newcomers should try to “fail at a small level” if they want to succeed long term.
“That is why we’re still in business,” Heekin said. “When we went down the wrong path, we were able to recoup it and go the different route. The formula [has always been the same] it’s just that we weren’t quite sure how to get it out there the best way. We were lucky that we were able to continue with it and finally get to a white space where we felt very comfortable growing and now we’re looking at taking this on a much bigger level.”