In the race to seize market share in the fast-growing sports drink/hydration beverage space, few brands have become significant players as quietly as Electrolit, the Mexico-based maker of flavored electrolyte drinks, which has expanded its U.S. footprint to over 30,000 outlets since launching its U.S. business in 2015.
According to market research firm IRI, Electrolit is among the highest growing sports drinks brands in the country, with dollar sales up 78.4% to $62.9 million for the 52-week period ending June 30 — making it the fourth largest brand in the category behind Gatorade, Powerade and BodyArmor. Created in the 1950s, Electrolit is owned by Pisa Pharmaceuticals and was developed as a medical solution to treat dehydration but over the past several decades has grown in popularity as both a sports drink and hangover cure — an evolution not unlike that seen by Pedialyte.
Speaking with BevNET, Electrolit commercial director Caridad Ochoa said that as the brand has gained mainstream popularity in Mexico, abroad it has emphasized its positioning as a daily use beverage by targeting both dry shelf and grab-and-go cooler placements.
Electrolit is available in 21 oz. bottles in eleven flavors: Apple, Berry Bliss, Coconut, Fruit Punch, Grape, Guava, Hibiscus, Lemon Lime, Orange, Strawberry, and Strawberry Kiwi.
“In the beginning we got pushback from the industry,” Ochoa said. “The medicinal appearance of our brand was not understood in the beginning, but we knew we had a winning formula and decided to stay true to our essence.”
Getting accounts early on was difficult, she said, as buyers rejected the medicinal packaging and square bottle. However, an aggressive sales team was able to build out a footprint in California, Ochoa said. The company spent two years focused on “learning, adjusting and improving” the brand along the West Coast before slowly expanding nationwide.
Convenience, she said, is one of Electrolit’s key channels, with 7-Eleven being one of the brand’s top retailers. Since 2015, the product has added about 7,000 c-store doors nationwide including chains such as Circle K, United Pacific, RaceTrac, Quick Trip, Pilot Flying J, Han-Dee Hugo’s, United Dairy Farmers, Speedway and Love’s Travel Stops with locations in Florida, Texas, Washington, Oregon, and Ohio.
“In 2017, when we launched 7-Eleven and got great exposure to the c-store channel we shifted gears and started expanding in c-store with a few divisions of Circle K, ampm and Extra Mile,” Ochoa said. “The data was there, the numbers were super solid, and from there we just amplified it and replicated that success.”
Today, Electrolit is now targeting Midwest and East Coast growth. Though its rollout to these regions was slowed by the COVID-19 pandemic, the brand has since resumed its expansion plans for 2020 and continues to add new doors.
While the brand’s packaging remains in line with its pharmaceutical origins, Ochoa said when Electrolit entered the U.S. market it adopted a traditional brand building model, implementing field and digital marketing campaigns with a robust sales team focused on securing strong in-store placements. Sampling efforts have been disrupted by the pandemic; In particular, experiential marketing at events such as the L.A. Marathon and cycling races has helped reach athletic consumers, while being present at concerts and festivals has connected Electrolit to millennial and Gen Z consumers who use the drink as a hangover cure.
When the pandemic first hit, Ochoa said the brand took measures to secure its supply chain and upped its production to ensure it had several months of product on hand (the company owns all its own production facilities based in Mexico). Although field marketing efforts were put on hold, Electrolit has now embraced influencer marketing online while also sending samples to construction and landscaping companies in order to put the product in the hands of essential workers to drive trial.
The company initiated a hiring freeze at the beginning of the pandemic in March, but has resumed hiring bringing on several new sales directors, including a director of DSD, a national sales director and new field and marketing positions. According to Ochoa, most of the brand’s distribution is through warehouses, with additional support from beer distributors including Molson Coors and Anheuser-Busch InBev affiliates.
Last month, Electrolit introduced three new flavors — Berry Bliss, Fruit Punch and Hibiscus — and will add multipacks. But Ochoa said the brand does not intend to expand outside of its core line in the near future, instead remaining focused on retail growth.
“We are filling those blank spots in territories with DSD partners, so we’re focused on that — on expanding our distribution, touching new markets, and increasing our core product line,” she said.