As the competition for dollars in the evolving hydration drink market heats up, Cincinnati-based Hoist is looking for an edge. In announcing the addition of Tyler Merritt as an investor and advisor last week, the company believes it has found one.
Though his brand Nine Line Apparel may not be a household name nationwide, the company has generated a strong following within a specific community that Merritt, a retired U.S. Army Captain who served in the 160th Special Operations Aviation Regiment, knows well. The Savannah, Georgia-based company “aims to reinvigorate the sense of patriotism and national pride that is disappearing daily from our society,” both through its range of Americana-themed products and its donations to military charities and disaster relief projects.
In Hoist, which promises “IV-level hydration” that works faster than water, Merritt found a brand with a similar mission to develop ties within the military: last year it launched its 16 oz. RTD line into select military Retail Exchanges and its powdered version into the Department of Defense ration program worldwide. After connecting with Hoist’s executive team through mutual associates and spending some time testing the products, Merritt formalized a business partnership to join as an investor and advisor leading marketing and distribution efforts as the powders launch on e-commerce and mass retail.
“I am a big fan of the ideology of business that there’s three elements: people, process and product,” he said. “I gave it to my friends and my colleagues and my boys. The feedback was that this is a game changer, and I wanted to be a part of it.”
As consumers’ beverage options continue to proliferate year after year, many startup brands have looked to tap into specific audiences to stand out from the crowd, with gamers/esports and high-performance athletes being two examples. In active duty members of the armed forces, veterans and their families, a handful of veteran-led brands with RTD products, such as Kill Cliff, Black Rifle Coffee and supplement maker REDCON1, have found a community of customers with similar values and a spirit of mutual support. Case-in-point: Merritt has run co-branded partnerships with all three aforementioned companies, having opened Black Rifle’s first franchise cafe location in Savannah. More importantly, he noted, he hit it off with the company’s founders while flying helicopters and shooting machine guns on a visit to Texas.
To Merritt, Black Rifle’s success in drawing a large social media presence through native content output hints at the potential for Hoist to do the same.
“People want to gravitate towards organizations that they know are real and that they could see themselves in,” he said. “People are engaged by that kind of content because they see themselves as representative of that character from Black Rifle, but it’s authentic.”
Hoist’s new visual identity also makes subtle nods to a more rugged appeal: the bottle has a “more tactical feeling,” said Rachel Trotta, director of business development at Hoist, through the matte finish, metallic logo and overall darker aesthetic. The change from its previous gender-neutral look is an acknowledgement of the product’s natural shift towards a more male-oriented audience and a direct appeal to outdoor enthusiasts and “tactical athletes” as well as active duty soldiers and veterans, she said.
“We noticed a huge shift in our audience naturally — more male dominated, kind of this grittier masculine consumer, and so the bright colors and the whites didn’t really fit anymore,” Trotta noted. A window has been added to show that the product is clear, she added, while new copy on the back details the results of a study conducted by University of North Carolina at Greensboro regarding Hoist’s hydration benefits compared to regular water.
Bringing Merritt onboard marks a new chapter for Hoist, a now-longtime independent player in the better-for-you hydration market, which has evolved from brands offering products pitched as a better-tasting alternative to Pedialyte to more robust lifestyle and wellness plays. Along with products from the likes of PepsiCo (Gatorade) and Unilever (the recently acquired Liquid I.V.), the space now features a host of innovative newcomers developing both RTD and powdered drinks.
Hoist’s “Military Hydration Powder” sticks — available in three flavors — are set to launch in early April in 16-count pouches priced at $24 each. Along with its current footprint of 2,000-plus retail locations, e-commerce will be a major focus for the coming year, and an area where Merritt’s robust experience is particularly valued. Hoist products will be added to Nine Line’s online store, he said, but will also be shared with the company’s subscribers and affiliates to build awareness. The feedback and validation the product has received from within the military thus far has helped boost the momentum.
“The proof is in the pudding with our Tier 1 (special forces unit) guys,” he said, referencing the positive reaction to Hoist from some of the members of Savannah-based 1st Ranger Battalion at Hunter Army Airfield. “They don’t hold back when it comes to offering honest feedback. Being a veteran doesn’t guarantee you success with other veterans, but it gives you an opportunity to get you foot in the door with some relevance.”