Two years after its launch, hydration beverage brand Basis has built a presence in its home market of Colorado. As it works to develop traction in natural channel retailers, the startup is now looking to break out of the Rocky Mountain region and make a play to disrupt the hydration space.
Founded in 2016 by Henry Springer and his business partner Kyle Nowak, Basis launched its first product in late 2017, which it sold in local markets and gyms in the greater Denver area. The brand, which to date has been mostly self-funded (with additional financing from friends and family), is currently in about 100 stores throughout the Rocky Mountain region, including, Lucky’s Market, Natural Grocers, Good Earth, as well as 32 Whole Foods locations and 30 independent accounts. It is also contracted to enter 90 King Soopers stores in the region later this year.
Springer emphasized that Basis is not a sports drink; the product’s “Clean Hydration” positioning makes it a ready-to-drink product in a category that has over the past few years has seen expansion through powdered brands like nuun, Liquid I.V. and Cure Hydration. However, while Springer acknowledged the product’s RTD positioning may nevertheless put it in competition with brands like Gatorade, Basis is taking its cues from another hydration leader: Pedialyte.
Since 2015, Pedialyte has marketed the product to younger consumers as a hangover cure, developing strong consumer engagement through social media and building a stable of influencers who can help reframe the brand’s identity as a post-party must-have.
“We had been using Pedialyte not only for hangovers, but also for strenuous exercise — being outdoors in Colorado, especially in the summer, is a very dehydrating lifestyle,” Springer told BevNET. “So we thought, could we make an adult Pedialyte? Like something that you don’t feel bad about drinking, because drinking a bottle of Pedialyte in public is not the best look.”
Aiming to make the product as effective as Pedialyte, Springer and Nowak based the product’s formula on World Health Organization’s (WHO) guidelines for hydration drinks, utilizing the organization’s suggested salt-to-sugar ratio, which ties back to the “Backed by Science” callout on its label. Basis contains 1000 mg of electrolytes and only 4 g of sugar per 16.9 oz bottle, and is sweetened with monk fruit extract.
The line comes in three flavors: Blackberry Lemon, Grapefruit Melon, and Cran Raspberry. It retails for $2.99 per bottle.
According to Springer, Basis aims to distinguish itself from Pedialyte by creating “something a little healthier, a little bit cooler, [and] something you would find at Whole Foods.”
While the company uses Pedialyte as its primary reference point, Springer said he believes the proposition of better-for-you hydration can help convert existing sports drink consumers to the brand. Instead of focusing on pro athletes, Basis is taking the route of brands like Kill Cliff or LIFEAID by targeting consumers in niche fitness subcultures, including programs such as Barry’s Bootcamp, Soul Cycle and hot yoga.
“What we have found going out to do demos and events in the natural sector is that our shopper doesn’t really relate with Gatorade,” he said. “They may have been Gatorade customers in the past growing up, but they’re typically turning to the coconut waters or electrolyte waters like Smartwater.”
While Basis has grown slowly in its first two years, Springer said the brand is in a position to expand in the coming months. In the past year, it has partnered with distributors including UNFI and DPI Specialty Foods, as well as broker Green Spoon. As the brand strives to gain a larger foothold in retailers in the Rocky Mountain region, Springer is targeting future expansion via natural channel stores in the South Pacific and Southwest, as well as nationwide in the fitness channel.
Basis is also exploring product innovations, including a powdered line which Springer said will allow the brand to grow its ecommerce business and reduce shipping costs. The company is also planning to switch from PET bottles to sustainable, compostable packaging.
After bootstrapping the brand to get it off the ground, Springer noted that Basis “should have all the materials” to open a funding round in the coming months.
“We’re scrappy bunch — I still have a full time gig at another company, Kyle is full time,” he said. “But we’ve managed to do all this so far without much fundraising.”