SOS Hydration, a California-based maker of electrolyte drink mixes, is the latest powdered beverage brand to take the leap to liquid, announcing today it will launch a ready-to-drink enhanced water line this summer.
According to co-founder and CEO James Mayo, when SOS Hydration was founded in 2013 the company had initially planned to launch as a ready-to-drink sports beverage, but “the dynamics of starting a new company” required the brand to pivot to powder. Sold in single-serve sticks and tubs, the brand’s flavored drink mixes are now reporting triple-digit year-over-year growth, up 139.1% for the 52-week period ending March 22, according to market research firm IRI.
“There’s a growing demand and desire for powder right now, but speaking to our customers and looking at what’s out there [on the market], there is a huge opportunity for the convenience factor of a ready to drink,” Mayo said. “Thanks to people spending boatloads of cash on educating the market about hydration, there’s now a nice opportunity for the RTD format.”
The line features Citrus, Fruit Punch, Mango and Watermelon flavors and will retail for $2.48 per 16.9 oz. bottle.
The new line is positioned as a functional enhanced water and is intended to compete directly with brands such as Bai and Vitaminwater, as opposed to traditional sports drinks, Mayo said. The formulation includes added nutrients for natural energy and improved hydration, including vitamins B6, B12, C, and D as well as folic acid, magnesium and zinc.
Though SOS Hydration is currently speaking with major retailers, Mayo said the line will have a pilot launch this summer online through the company’s website and Amazon. By focusing on ecommerce, he added, the company will be able to gauge the line’s performance with its existing consumer base. A brick-and-mortar rollout is expected for Q1 2021, though he noted that it could launch sooner as an exclusive item in select retailers.
According to Mayo, the company plans to expand its sales team ahead of the retail launch and will focus on driving trial through product giveaways. Though the COVID-19 pandemic has halted in-store sampling programs, he said the brand relies heavily on experiential marketing and will continue to focus on getting the product into consumers’ hands, including through online sample packs.
“For the wider consumer, it’s going to come down to the ‘Magic P’s’ — packaging, price, and promotion,” Mayo said. “Because we are a very event-focused brand, everything we’ve done is about the opportunity to share it and try it. So we will be doing a big push to give away and get SOS into the hands of as many people as possible, as well as making it available to buy.”
The shift into RTD will mark a significant expansion for the company, Mayo said, but expanding the powder line will continue to be a core focus for SOS Hydration. The brand is currently available in about 5,000 stores nationwide, including CVS, Kroger, H-E-B and Wegmans as well as sports specialty accounts. This week, the brand will add the Northern California, Southwest and Florida regions of Whole Foods with four SKUs. Unusual for the brand, which typically only sells multipacks, the retailer will also offer purchases of single sticks as a way to generate trial.
In a move towards sustainability, SOS Hydration will also transition the packaging of its stick line to compostable packaging this summer. According to Mayo, the new packs will be available online only to start as the new packaging has only an 18 month shelf life, as opposed to the three year shelf life demanded by most retailers. The company is currently working to extend the shelf life on its new packaging as well as develop compostable packs for its tub line.
“We wanted to lead the way as one of the first brands in any sort of stick packet, not just the hydration space, because the customer deserves the best,” he said. “We want to stop cluttering up landfills and look after the massive plastic issue that we’ve got.”