Clean energy drink mix brand Pureboost announced it has raised over $2.6 million via crowdfunding from over 500 individuals as it prepares to expand its retail presence this year.
Launched in 2018, Pureboost produces powdered energy drinks sold in single-serve stick packs. The brand is available in eight flavors across its three lines, Original, Superfoods and Immune. Each drink contains B vitamins, caffeine from green tea and an electrolyte blend. The mixes sell online for $31.99-$34.99 per 30-pack box.
According to co-founder Sean Ross, the financing follows Pureboost’s expansion into brick-and-mortar retail last fall, after spending several years as an ecommerce exclusive brand. The products are currently sold in over 2,500 stores nationwide – including Walgreens, Walmart, Meijer, Target, Kroger, Ingles and Publix – and Ross said the company has been hiring to support its expansion.
“The reason we went the Wefunder route, and why I love it so much, is [that] it has really allowed not just our friends and family members who wanted to invest, but our community – our customers, our followers, our loyal ‘PureBoosters’ as we call them – to come in and really be a part of this,” Ross said.
Pureboost reported $8.5 million in revenue last year and has brought in over $21 million in revenue since launching in 2018 (when it generated just $63,000 in sales). Anticipating significant growth through retail and ecommerce in the next few years, the company told prospective investors it is projecting $100 million in revenue by the end of 2026.
On its campaign page, Pureboost reported that the products have a 45% repurchase rate on a 35-day purchase cycle with an average consumer spend of $93 per year. Subscriptions make up about 65% of DTC revenue and 35% of Amazon revenue, bringing in an average $155 per consumer per year.
“Amazon to this day is a big, big core [part] of who we are, and it’s opened up the doors to many, many retailers,” Ross said. “We’ve got a pretty sophisticated team and we could go into so many more retailers, but we wanted to crawl before we run.”
Online, the brand is also now sold via Costco.com, and is hoping to launch in the retailer’s brick-and-mortar stores in the near future. Pureboost has introduced a 45-count box of its core product line for the big box chain and Ross said the online partnership has been a significant lift for brand discovery and trial.
Ross noted that the crowdfunding campaign has also served as a powerful marketing tool. Even consumers who come across the brand’s Wefunder profile and decide not to invest may still go on to purchase the products. Ultimately, Ross said the company hopes to raise another $400,000 on the platform for a total $3 million round before it closes the campaign in April.
Much of the financing will go towards supporting its expanded business, including in-store marketing and promotions. Pureboost recently hired a trade marketing manager, a VP of operations and supply chain, a digital marketer and a copywriter, bringing the business to 10 full time employees.
As well, the brand is developing new innovations which will be announced in the near future, Ross added.
“We’ve been trying to stay as lean as possible so we can pour as much money into marketing and growing the business,” he said. “But as you grow you’re going to have to hire more people and that’s what we’ve been doing.”