Clean energy drink brand X2 Performance announced today it has partnered with Anheuser-Busch InBev’s AB ONE distribution network to expand its presence in the California market.
Based in New Jersey, X2 makes a line of energy drinks containing antioxidants and electrolytes. The brand’s RTD products, available in Fruit Punch, Raspberry and Strawberry Kiwi flavors, are currently sold online, and in retailers such as CVS, on-premise accounts including Subway restaurants, and supplied directly to over 30 professional sports teams.
According to X2 VP of sales Jim Block, the partnership with AB ONE began rolling out earlier this month and is serving to kickstart a national expansion for the brand, starting in Southern California convenience and grocery retailers. The company is now picking up select 7-Eleven, ampm, Circle K and Anabi Oil stores around Central Los Angeles, Riverside/Pomona and the Beach Cities areas, Block said.
X2’s CEO Mark French added that the company aims to expand its footprint into several thousand new doors over the coming months. The company is “being very disciplined” in its approach to growing its footprint and will assess its expansion on a “market by market basis” as it builds out a DSD network nationwide.
“In just two-plus weeks we’re already in hundreds of new retail locations, and that [shows] how quickly the buy-in has been from these retailers,” French said. “So it’s moving very quickly. I think between ABI and us here at X2 we’re really, really happy with that penetration.”
In July, X2 closed a $16 million Series D funding round led by private equity firm L Catteron and featuring athlete investors including New York Giants running back Saquon Barkley. The company had previously taken investment from Sweetwater Capital and also counts NBA All Star Kawhi Leonard, Tampa Bay Buccaneers linebacker Lavonte David and Peloton instructor Kendall Toole as stakeholders.
French said that much of the financing has gone towards supporting this expansion, in particular upping production to meet demand. The company said it also plans to announce new distribution partnerships for its powdered supplements and shots in the near future.
The brand’s roster of pro athlete investors is playing a key role in fueling X2’s expansion, French added, noting that Los Angeles Clippers star Leonard is a “hometown hero” whose image is helping to drive sales in SoCal.
“A big part of our brand is obviously these elite All Star athletes, and I think part of the reason why we’re seeing such great sell-in and sell-through in the first couple of weeks here is because of our marketing,” French said. “Our [point of purchase] is second to none.”
While X2 is a performance energy drink merchandised alongside brands like Red Bull and Monster, French noted that the beverage is now gaining traction as a crossover product with more sports drink qualities than competing energy products. Beyond the athlete-focused ad campaigns, the drinks are non-carbonated — making them ideal for pre-workout consumption — and contain 114 mg of natural caffeine from green tea per 12 oz. can to reduce jitters.
Next up for the brand is launching more product innovations as well as expanding its head count on the sales, marketing and R&D teams, French said.
Alongside the expansion, X2 is also bringing in new leadership talent. This summer, Aramark president and CEO Eric Foss was named chairman of the company’s board of directors. French said that Foss came to the company through L Catteron and also brings experience as the former chairman and CEO of Pepsi Bottling Group.
“Having somebody like him to help me and the team strategize and think through how we take this [brand] through these next growth levels, has been really, really valuable,” French said.