Premium bottled water maker Icelandic Glacial announced this month it is implementing new sustainability initiatives and expanding its product offerings to fuel its omnichannel expansion plans. The push towards sustainability comes eight months after the brand secured $66 million in new financing, including a $35 million investment from BlackRock’s US Private Credit team.
According to Icelandic Glacial CEO Reza Mirza, the brand will transition all of its packaging to 50% recycled plastic (rPET) bottles by 2021. Part of last year’s funding, he added, went towards the installation of a new aluminum canning line at the company’s Iceland production facility capable of producing still and sparkling waters.
The brand will also roll out multi-serve three liter boxed options for retail and 20-liter packaging for food service. According to Mirza, Icelandic Glacial’s focus on sustainability is providing the brand an advantage in the on-premise channel as hospitality and food service accounts look to adopt their own environmental practices. He noted the brand has recently partnered with resort chain Caruso and co-working space company NeueHouse and is preparing to add several “high profile” hotel accounts in the coming weeks.
“We have such a strong sustainability story and that’s why the on premise buyers really like us,” Mirza said. “On that side, for our hotel and restaurant accounts, sustainability is becoming front and center.”
Icelandic Glacial’s focus on hospitality and other on premise accounts comes as it surpasses 34,000 retail stores nationwide, Mirza said, up from 24,000 stores in August 2019. The brand added 2,500 doors — including 950 Food Lion locations — in the past month. The brand’s retail sales are consistently growing about 40% month-over-month and the company has expanded its sales team, he said.
Icelandic’s sparkling water line, which was introduced in 2018, has contributed to its growth. This month, Icelandic Glacial released updated packaging for the line and introduced two new flavors — Tarocco Blood Orange and Indonesian Lemongrass. The products accompany the existing varieties Sicillian Lemon, Tahitian Lime and Bulgarian Elderflower and are flavored with botanicals sourced from each SKU’s respective named region, Mirza said. The new products will launch in about 500 stores, including Target and Stop and Shop.
“We’ve presented our sparkling products to a lot of the natural and grocery outlets and we want to build it from there,” Mirza said. “Once we build out these two channels, we will then move onto other stores and channels.”
To support the expansion efforts, Icelandic Glacial is also investing in new marketing initiatives, including activations at events such as the Toronto International Film Festival (TIFF), which is held annually in September. As well, the company is preparing to launch a new consumer advertising campaign this summer which will emphasize the brand’s flavor and its sourcing.
“What we know is that taste is still the number one purchase driver for not just Icelandic Glacial, but the entire premium water category,” said director of marketing Michelle Grieco. “Making the connection that this water’s taste is as pure as it is because it is sourced directly from Iceland is important to us. So the campaign is going to be making those parallels clear to the consumer.”