Nootropic-infused sparkling water brand HOP WTR announced last week it has achieved 500% growth in its first full year on the market, with its retail footprint now reaching 17 U.S. states.
Launched as an online exclusive last year, California-based HOP WTR is now available in all BevMo! locations in California, Washington and Arizona, as well as Erewhon, Lassens, Lazy Acres, Lakewinds, Jimbos and Total Wine & More accounts. The brand has also made extensions into conventional grocery with Ralph’s, HEB and HyVee stores and has begun breaking out into independent accounts in Boston and Austin, Texas. The products are also available online via Amazon, Walmart, Instacart, Drizly and goPuff.
The announcement comes two months after HOP WTR received a venture investment from Constellation Brands. According to co-founder Jordan Bass, HOP WTR’s partnership with Constellation Brands has helped the brand to accelerate the distribution and retail growth. While its brick-and-mortar presence is primarily in the brand’s backyard of Southern California, Bass said the company is building out a “robust organization,” adding new team members in sales and marketing to support scaling.
“We started as an online-first business, which certainly made sense given the climate and our experience,” Bass said. “So we launched online, we got immediate traction, and that gave us a pretty clear indication that consumers love the product and there was an opportunity to expand into retail.”
Designed to offer consumers a non-alc beer alternative that provides a physical and mental sense of relaxation, HOP WTR is infused with nootropics and adaptogens like L-theanine and ashwagandha. The brand’s growth has been largely driven by increasing demand for zero-proof beverages as more consumers seek to reduce or entirely cut out alcohol; according to Constellation Brands, sales of non-alcoholic beverage alternatives grew 37% in 2020 while 58% of consumers said they swapped between alcoholic and non-alc drinks in the same session.
In July, Taranto told Brewbound sister publication BevNET that HOP WTR sales were bolstered by trends such as Dry January; the company had also sought to market around “Dry July.” Now, Bass said the brand’s marketing is reaching deeper into the territory of alcoholic brands, including an appearance at the L.A. Beer Festival last weekend. As new pandemic restrictions have once again pulled back brands’ ability to sample in-store in certain markets, Bass said the brand is taking a guerilla approach, attending high traffic events and handing out full cans.
“Getting cans in hand, getting the liquid for people to try is one of the most important things for us,” Bass said. “And so when we think about field marketing, we’re having to be scrappy, and we’re having to innovate in how we get samples out to consumers.”
Initially launched in Classic, Mango and Blood Orange flavors, HOP WTR has also now added a fourth SKU, Lime, which Bass noted is the most popular flavor in the beer category, adding that the fruit’s citrus notes are a natural pair with hops. The product is set to begin rolling out this fall and additional innovations — both with flavor and functional ingredients — are scheduled to launch next year.
“We think that this ‘unwind’ and stress reduction usage occasion that we’re going after is super relevant for the times with what’s going on in the world right now,” he said. “But there’s also a lot of other important functional categories that our customers are telling us are important to them. So I think there’s a lot of opportunity for us to continue to expand in that functional category — think immunity, which is obviously very important these days — but lots of other functional categories too.”