Coming off triple-digit growth in 2019, Hellowater has partnered with Southeastern Grocers to add over 400 grocery channel accounts ahead of broader expansion this year.
Speaking with BevNET, Hellowater co-founder and EVP of sales and marketing Rusty Jones said the Chicago-based brand, which markets a line of flavored waters infused with prebiotic fibers, is now available in BI-LO and Winn Dixie stores, bringing its total nationwide footprint to about 6,000 stores. According to Jones, the Southeast is among Hellowater’s top performing regions. — along with the Northeast and the Chicagoland area.
“As a bottled water company, warmer weather markets are our better markets,” Jones said. “We have the most significant ACV in the Northeast, but year round we perform best in Florida, Georgia, Arkansas and in Texas where we have our Walmart business. All of those Southern states show consistent business without us really investing much yet in brand awareness.”
In addition to Southeastern Grocers, Hellowater is sold in Target and Kroger stores around the Atlanta area, in Jewel-Osco accounts in Chicago and at Stop and Shop, Shaws, Giant and Price Chopper stores in the Northeast. The products are also available in Target stores in Colorado and through Nestlé North America’s ReadyRefresh home delivery division. The company also has intentions to expand in California.
Jones said Hellowater plans to invest more in marketing campaigns in 2020, noting that until now it has largely focused on “one-on-one consumer interaction” through sampling and social media ads. The brand will aim to educate consumers on the digestive benefits of fiber while making the functional ingredient appear more “fun” and explain that “Hellowater is not your grandma’s fiber.”
While aiming to scale distribution, the company is also investing in innovation, including two new flavors — Sing (wild grape) and Vibe (black cherry) — launching this month. The flavors join Hellowater’s existing lineup of mood-focused flavors including Smile (mixed berry), Laugh (lemon lime), Live (pineapple coconut), Love (cucumber lime) and Dance (orange mango). Looking further ahead, Jones said the brand is also developing a sparkling water line and is set to launch its own ecommerce platform in either late spring or summer which Jones said will serve as a “more affordable launching pad” for new products.
The company is also currently seeking to raise $2.5 million in a Series A, Jones said, and has already secured several angel investors but is seeking an institutional partner to anchor the round.
“We’re looking right now for an investor who is interested in joining a fast growing beverage brand with proven sales,” he said. “We aim to have some exciting key strategic partners who either know the beverage business or who have an avenue that we can tap into, whether it’s analytics or distribution. We’re not looking for somebody to buy the whole ticket, just a collaborative Series A to get us to our 2020 goals and maybe beyond.”