When Novak Djokovic reached out to Waterdrop out of interest for the brand and later became an investor and ambassador, very few had heard of the Austrian microdrink company in the U.S. Since then, the brand has gained considerable exposure following the U.S. Open this past August and opened 4 stores across the country, contributing to a total of over 40 stores worldwide. As an alternative to plastic pollution and excessively sweetened drinks, Waterdrop aims to become a global leader in sustainable hydration, competing with well-known beverage companies, yet carving an entirely new category for itself.
Started in Austria in 2016, Waterdrop was created as a solution to a problematic truth: most hydration drinks are packaged in plastic and/or full of sugars, which is hugely unhealthy and unsustainable. Faced with this reality, Martin Murray, the brand’s founder and CEO, thought about developing a product that would use accessible water as a platform and allow consumers to enjoy a range of flavors without needing to purchase overly sweetened and packaged soft drinks. This led to a product made of fruits and extracts, compressed into small cubes and dissolvable in fresh water. Now, the brand is on track to global expansion, with the U.S. as a priority market for the next stage of its growth.
A disruptive approach to healthy and sustainable water consumption
Deciding to compete against leading beverage companies is no small task. Doing so by offering a differentiated product that is not packaged in plastic and full of sugar is equally bold, but Murray has been determined and passionate to bring his innovation to market since day one. “We decided to use water as a platform and create something small that is scalable, profitable and sustainable: a flavored microdrink. It allows consumers to make their own drinks and becomes a personalized experience, encouraging more people to drink water in a sustainable and healthy way.” Waterdrop uses natural fruit and plant extracts that are compressed into a small cube, which can be dissolved in water in under 3 minutes.
The aim with these microdrinks is to offer consumers fruity, flavorful water-based beverages that can be made at home in the most convenient way, thus encouraging them to drink more water and lead healthier, more sustainable lives. Just 4 years after launching, the company now offers more than a dozen flavors, satisfying every taste and preferences. In addition to its core product line of vitamin-based hydration cubes – with flavors ranging from peach ginger to cucumber watermelon 0r lemongrass – Waterdop now offers other ranges to meet specific needs. It recently launched its electrolytes and energy lines for those seeking a source of rapid hydration or caffeine boost before and after a workout or during a busy work day.
Product innovation is key to Waterdrop’s growth: expanding its product lines to different needs, occasions and preferences will help the brand grow its customer base. At the same time, all new variants will have the common traits of being made of real ingredients with no added sugar, a value proposition that speaks to more and more consumers cautious about what they put in their body.
Why retail expansion is Waterdrop’s main priority
In 2021, the company secured a €60 million Series B funding round to fuel its global expansion. So far, the brand has been predominantly sold online, which was a strategy established early on: with a product so light and easy to ship, starting to sell through the e-commerce channel represented a relatively simple and very scalable distribution model to replicate across markets. However, the brand also decided to ramp up its range of retail partners to establish its omnichannel distribution strategy and open its own stores as a means to engage with customers and acquire new ones. With stores and kiosks in various European cities as well as a Singapore, the next phase of growth was to expand to the U.S.
A flagship store opened in Mall of America, the country’s largest mall, and 3 other stores followed later on in Miami, Los Angeles and New York City. “Our stores have a strong marketing appeal: there is nothing more effective than speaking with potential customers face to face to gather feedback, understand consumers and build a community,” shares Murray. Opening its own stores helps boost brand awareness and facilitate customer acquisition, two big priorities in a market that is not very familiar with the brand. Howver, its recent partnership with Rosie Huntington-Whiteley for accessories and a limited-edition blackberry flavor, as well as its presence across major malls and retailers (Target and Walmart mainly) might change that.
By creating a new category and way of consuming water that does not involve plastic or sugar, Waterdrop plans to become a leading hydration brand without every selling packaged water. This innovative, healthy and sustainable product represents a convenient and customized way of consuming water that is sure to make its way through more households as it grows its distribution network across the world. With a name that is easy to remember, an array of attractive flavors and an enormous market to tap into, Waterdrop is just at the beginning of an ambitious and purposeful journey.
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