Beyond the Quench

Happy Friday,

How was your week?

It feels like summer has finally arrived, and I was able to bike to work a couple of times this week. Like a true beginner, I forgot to bring water for the ride (amateur).

That (slightly parched) ride got me thinking about more than just plain water. 

In today's world, we often look for ways to optimize every aspect of our lives, and our beverages are no exception.

And the beverage category hasn't been spared; drinks are now designed to actively boost our body and mind. This isn't some niche fad; it's a massive shift, like $175 Billion globally this year alone (wild right).

But what's powering this thirst move?

• We are all amateur bio-hackers | Eating with purpose; this is the way

• Beauty is already there | Ingredients benefits first now influence our skincare routine.

• Gen Zs aren't a big fan of alcohol | with saving $ and better mental health driving the choice

• Sober curious is the new black | with a $1.6T forecast in 2025, as reported by Statista. 

Drinking with benefits, yes, please

The world is now your oyster coming to you in ready-to-drink or quick-mix powders unlocking hydration, more focus, calm or brand gains or else. 

But how do you win in such a new, crowded category?

• Spill the Benefits (Clearly!) | Don't be vague. "Healthy" is now boring. (Recess does this well)

• Taste Still Rules | All the benefits in the world won't save a drink that tastes like cardboard. Great taste, like Olipop delivers and means repeat buys.

• Know Your Target | Make sure everything screams their name, Liquid Death, anyone? 

• Trust is Everything (Seriously) | Be painfully transparent about your ingredients. Share your "why." Get real people sharing real experiences.

In short, you have to stand out: Celsius for gym rats; Alani Nu for better energy; Magic Mind for productivity in a bottle; for brain fuel; Kin reinventing social rituals.

Easier said than done, upcoming categories present a few challenges and brand builders need to make sure they :

• Cut Through the Noise | It's getting crowded; your brand needs a unique hook and a loud, clear voice.

• Keep it Legal (The Claim Game) | Health claims get eyeballs from both consumers and regulators. Tread carefully.

• Schooling Your Sippers | Some of these fantastic ingredients are new to folks. Gentle education is key.

• The Price of Goodness | Innovation can be pricey; balancing that with what people will pay is a struggle.

The Sip

Not in the beverage business? No problem, the functional drink boom has some golden nuggets for brand builders:

• What's Your "Functional Benefit"? In a world craving real value and optimization, what problem are you actually trying to solve?

• Are You Radically Transparent? Consumers are smart and have a high BS meter; how open and honest are you about your brand?

• Is Your Brand Story Believable & Your Experience Unforgettable? Every brand needs to earn trust in their claims. Is your brand's core promise authentic and compelling? 

In short, brands that genuinely do more, are transparent, connect authentically, and deliver an amazing experience are the brands that win. 

Cheers,

See you next week