Hydrogen-infused sparkling water brand HyVIDA is emphasizing fun and flavor, alongside health, in a new rebrand that launched this month.
Based in Michigan, HyVIDA is available in Lemon Lime, Raspberry and unflavored Pure varieties. Each 12 oz. can contains zero calories and retails for $1.49-$1.99.
Founded in 2016, HyVIDA’s original branding highlighted the product’s scientific credentials with pharmaceutical feel (akin to Liquid I.V., Smith noted). Despite positive feedback from consumers and a 40% repeat purchase rate on Amazon, co-founder and CEO Rick Smith said the growth of functional beverages during the pandemic was the impetus to move towards more colorful and inviting labels that could appeal to new consumers.
The refreshed can now features callouts to antioxidants and magnesium, while reducing the prominence of hydrogen as the hero ingredient.
Smith is also aiming to expand beyond “hardcore” fitness enthusiasts and using athletes in its marketing, both of which he said can be “sometimes unrelatable” to the everyday shopper. The shift in messaging to focus on more widely known nutritional callouts such as antioxidants will also make it easier to educate consumers, he said.
“I think we nailed it from a branding perspective in terms of a look,” Smith said. “We’ve distilled and simplified the proposition and we’re leading with things that are super intuitive like antioxidants, magnesium, and organic. And so the idea is let [the consumer] research hydrogen after they drink a whole can and go ‘Damn, I feel good’ as opposed to leading with hydrogen and expecting them to do the research before trying it.”
According to Nielsen, the sparkling flavored water category reported over $3.3 billion in retail sales for the 52-week period ending April 24, up 19.6%. As the category expands, functionality has been a key point of differentiation for innovative brands and has now gained the attention of strategics. Earlier this month, PepsiCo debuted Soulboost, a new line of functional sparkling waters aimed at promoting mood and wellness.
HyVIDA also faces competition from other startups targeting similar need states, including brands like antioxidant-rich sparkling water BUBBL’R.
Smith, however, believes that HyVIDA’s key advantage lies in its mouthfeel. He said hydrogen creates a smoother texture, akin to nitro-infused drinks, that has less “acidic burn” while maintaining the carbonated feel. As well, hydrogen is quickly absorbed by the stomach lining and leads to less bloating, Smith said, a quality he believes will appeal to female consumers in particular.
HyVIDA is currently available in about 1,000 stores nationwide, including The Fresh Market, Meijer, Plum Market and Earth Origins stores, and has primarily been distributed through UNFI and KeHE. The company is now aiming to build out its DSD network and has onboarded with Imperial Beverage in Michigan, Smith said. As the convenience channel begins embracing better-for-you products, HyVIDA will aim to target nationwide chains.
“What they want are premium, functional, healthier beverages,” he said. “And the DSDs are responding and looking for brands that offer that, particularly in single-serve premium sets and so forth.”
As HyVIDA scales its consumer-facing business, the company is also adding a B2B division. Hy Infused is a new initiative launched this spring which offers HyVIDA’s hydrogen-infusion technology to other beverage brands, including beer and cocktail producers.
Smith said he believes the lack of hydrogen-infused products on the market is in part due to a lack of available technology. Hy Infused’s patented plug and play system can quickly add hydrogen-infused to existing production lines and the company will lease its machines to both co-packers and brands. To drive brand synergy, Smith intends to create a Hy Infused logo that will go on the packaging for all products made with its technology.
The company has already begun working with breweries, including Michigan-based craft beer breweries Unruly Brewing and Right Brain Brewery. Smith said there are currently four ready-to-drink cocktail brands developing prototypes. The technology will also be available to the global market and Hy Infused is currently in talks with companies in Asia and Australia.
“It creates, obviously, category awareness, category lift, non-dilutive capital onto the balance sheet, brand awareness because of the Hy synergy — all of that kind of coalesces together and we can bring more people to the space, we can deliver healthier products in all kinds of avenues and categories,” he said. “If all goes well, we’re going to have hundreds of other brands marketing this concept for us.”