- Spindrift announced last week that it has secured $20 million in funding from private equity firm VMG Partners and other existing investors. In a press release, the company said that the capital will aid in launching Spindrift's first national television campaign and will support expansion across its retail partners, including Whole Foods, Kroger and Starbucks.
- Spindrift has experienced 1,000% revenue growth in the last three years. The company is aiming to triple its distribution this year to more than 25,000 doorsteps and 5 million cases shipped.
- The sparkling water category grew by 70% between 2011 and 2016, according to Euromonitor International, and is on pace to hit $3.1 billion in sales by 2022.
The sparkling water category continues to surge thanks to growing consumer interest in healthy soda alternatives. Once synonymous with La Croix, the segment has become crowded with entries by powerful beverage giants. Just last month, for example, Nestle rolled out regional sparkling water products, and Pepsico debuted its new bubly brand.
Now, eight-year-old Spindrift is putting pressure on the competition by increasing its visibility and promoting what differentiates it from major players. In 2017, the company removed all natural flavors and essences from its beverages. Its flavors comes from fruit juice and fruit puree, allowing the company to promote itself as "the first and only line of sparkling water made with real squeezed fruit." In a press release, VMG's Robin Tsai said Spindrift is disrupting the category because of traceable ingredients — a top demand for health-conscious consumers.
Beyond its national ad debut, Sprindrift has formed a partnership with Starbucks. The coffee retailer has a loyal customer base and, as of last month, those customers are now exposed to Spindrift nationwide. The sparkling water company is hyping that relationship on social media, putting its brand in front of Starbucks' 16 million Instagram followers.
The sparkling water category will reach saturation at some point, but current growth and investment suggest it won't come anytime soon. Nearly two-thirds of adults identified still or sparkling water as their most preferred beverages, followed by coffee and diet soft drinks.