At Liquid I.V., flavor and function are the name of the game.
While sports drinks drove the sleepy electrolyte category for many years, Liquid I.V.’s 2012 launch created an unmatched level of buzz and excitement for getting hydrated. The company, which is powered by its trademarked Hydrascience formula of vitamins, electrolytes and other nutrients, has managed to remain relevant, as new entrants tap into the “sexy water” craze all the time.
Since being acquired by Unilever in 2020, Liquid I.V. is now in over 80,000 retail doors as the number one powdered hydration brand in the United States, according to the company. As a nearly $1 billion business, it is the largest brand in Unilever’s Health & Wellbeing Collective, which also includes Olly and Nutrafol. It is now available in seven countries, including the United States, United Kingdom, Mexico, China, Australia, Canada, and the Netherlands.
Here, Liquid I.V. chief executive officer Mike Keech talks the company’s continued growth, recent viral moments, including its Popsicle Firecracker-flavor, and what is driving the hydration category.
WWD: Liquid I.V. has quadrupled over the past four years to a nearly $1 billion business. What’s driving this growth?
Mike Keech: The powder format has existed for some time, albeit not a priority for any of the encumbered brands. When Liquid I.V. came onto the scene 12 years ago, it did the unique thing of creating a category around flavor and function. One of the big growth drivers has been our proposition. We’re clear on four key occasions, which are where hydration is most needed: heat, exercise, travel and nightlife. When we focused and sharpened our marketing and our proposition to key everyday hydration moments, that unlocked a huge amount of growth for us.
WWD: Liquid I.V. recently underwent its first rebrand, introducing new packaging and marketing materials. What has the impact been?
M.K.: Consumers were looking for us to better communicate the true to food flavor on the front and highlight our science-backed product design. Then, bringing out the vibrancy of the brand. We’ve seen upwards of 30 percent lift in sales on non-promoted run rates just from the packaging alone.
Liquid I.V. Sugar-free Hydration Multiplier
WWD: You also launched a sugar-free version. What has that reception been like?
M.K.: Sugar-free was one of the number-one things that consumers were asking for for years. It did take us two full years to develop that formulation. [The Liquid I.V. Hydration Multiplier Sugar-free Variety Pack] placed as the third most sold product in units on the entire platform on Amazon Prime Day in 2024. It is a very significant part of our business now.
WWD: Liquid I.V. has recently had some other viral moments. How do you balance virality and sustainability?
M.K.: A very relevant example is our Popsicle Firecracker variant that we launched about three months ago. That is an example of us going into trends and insights, not from a product point of view [but] from a proposition point of view. When we look at trends that are happening in the marketplace from a proposition point of view or a passion point of view and we deliver a product that works in that space, that’s where the magic sits. We’re constantly toggling between short term business decisions and long term. We’re going fast, but we’re also going to go thoughtfully.
Liquid I.V. Hydration Multiplier in Popsicle Firecracker
Courtesy
WWD: How did the Popsicle Firecracker flavor come about and what was the impact?
M.K.: [In our research,] nostalgia was a big theme that came up [for summer]. We were like, ‘How do we tap into the broader theme of nostalgia?’ We brought [Popsicle Firecracker] to the market in record time. The flavor added an extra 8 percent incrementality of consumer appeal and reached 77 percent of potential purchasers in comparison to 20 other flavors tested. One of our creators posted a viral video, [and] it went to the number-one ranking video on TikTok Shop in its entirety.
WWD: With the success of the Popsicle Firecracker iteration, what role will collaborations and flavor development play in the future?
M.K.: We know that our consumers love collaborations, not only just in our category but across so many different categories. We were looking for all sorts of insights and things that consumers wanted. Cotton candy was something that we had once launched in 2022 for a limited edition, and it was our most requested flavor to bring back. We brought it immediately back.
WWD: The brand has expanded globally very quickly. What challenges have you faced in doing so?
M.K.: Regulatory is a challenge across the world. The power of Unilever research and development, that is a muscle which I’m able to lean on to very quickly understand alternative options, different solutions to overcome any of the regulatory hurdles.
WWD: With new entrants to the category, what differentiates Liquid I.V. now?
M.K.: We invest a lot of money in clinicals. Until we have a clear signal that something works in a robust clinical study, we’re not going to put it into the marketplace. A key way that we’re going to differentiate ourselves also is on impact. Over 1 percent of our revenue goes directly to our impact programs. We’ve spent about $6.1 million to expand clean water access to our impact programs. We’ve handed over 61 million sticks to all sorts of crisis situations across the country and across the world, and we’re committed to delivering about 150 million of those servings by 2032.
WWD: Over the past 12 years, Liquid I.V. has stayed within the powder category. Will the company ever tap into other formats?
M.K.: We will remain open minded. If we can find a way of hydrating people better and faster than current solutions today, we always can look at it.
