Earlier this month, Lemon Perfect named former Mast-Jägermeister US head Jeff Popkin as its CEO, marking the first chief executive move at the enhanced water startup since it was founded in 2017. A month into the role, Popkin says his priority is to scale a brand he believes has the ability to “go anywhere” from c-stores to golf shops.
Popkin assumed the role from founder Yanni Hufnagel, who has now stepped into the position of executive chairman and will continue to “be the face of the brand” and “push the innovation engine,” Popkin told BevNET in a phone call today.
According to Popkin, who’s past experience includes executive roles at Vita Coco and Red Bull Distribution Company, he was brought into Lemon Perfect to scale operations and help “divide and conquer” as the brand aims to firmly establish itself as an omnichannel competitor.
“I’d been watching Lemon Perfect because it’s a brand that’s doubled its business the last three years in a row, and those things tend to get noticed,” Popkin said.
He added that it was Hufnagel’s decision to step aside as the top day-to-day decision maker, opting to bring in a seasoned “operator” who could guide the brand as it works to build out its DSD network and make headway in small format channels like convenience and gas.
Data firm Circana reported dollar sales of Lemon Perfect’s flavored waters in U.S. retail, MULO plus convenience, grew 4.4% in the 52-week period ending July 14, 2024 to over $32.6 million. However, that statistic may not reflect all of the company’s product lines or channels, such as foodservice.
Much of Lemon Perfect’s retail presence to date has been in conventional and mass accounts, with only some select convenience channel presence, Popkin said, meaning there’s significant white space to grow in “cold channel” grab-and-go accounts.
He also views foodservice and on-premise (FSOP) as another key target, with office accounts and restaurants being a sizable opportunity for the brand. But there’s also an opening for the brand to make headway in alternative accounts as well, Popkin suggested, believing that Lemon Perfect’s simple branding focused on hydration and refreshment gives it a rare ability to “go anywhere.”
“Whether it’s a venue, whether it’s at a barber shop, whether it’s in any restaurant that you go into,” he said. “I was in, over the weekend, a TravisMathew shop – a golf shop – and I was talking to him thinking ‘Man, you could serve some Lemon Perfect in here.’ Every single place you go, Lemon Perfect could be there.”
As the business grows, Popkin said he expects to be “staffing up” its field and insights teams as Lemon Perfect’s DSD network expands.
Besides Popkin, the Atlanta-based brand also saw several other key executive moves this fall. At the beginning of October, president, chief revenue member and board member Jim Brennan announced that he was retiring from full time responsibilities with Lemon Perfect, but would continue to work in the beverage industry in board and advisory roles. As well, the company recently announced Gui Weaver as its new chief sales officer, bringing 15 years of experience at Monster Energy with him to the role.
Looking ahead, innovation will be another pillar in growing the brand and drawing in new consumers. Although Popkin didn’t share any specifics on future products, he said the company will “follow the data” and is focusing on appealing to Gen Z and is weighing an array of R&D options including new flavors, line extensions and “occasion-based” products.
He also noted that Lemon Perfect makes a canned version of its drinks for foodservice already, which could potentially be extended into other channels as well as a sustainable alternative to its standard PET packaging.
The company previously updated its packaging, moving to a larger 15.2 oz. bottle from its previous 12 oz. pack, and reformulated the drinks to remove erythritol. It also debuted new flavors at the beginning of 2024, including Blueberry Coconut and Watermelon.
“As you scale, innovation is one of the key drivers,” Popkin said. “Because the consumer today needs to be somewhat entertained and needs to be blown away by what you put in front of them as an extension of the brand.”