Riding the strength of its positioning as the “only RTD hydration beverage with 100% of the daily allowance of Vitamin D per bottle,” Michigan-based Shinewater has secured a deal that will see it enter Anheuser-Busch’s network of wholly owned distributors starting next month.
Boasting a physician-approved formulation, ShineWater first hit the market in 2018, operating out of Charleston, South Carolina. But in the months since an overhaul in 2020 that saw it rebrand, relaunch and relocate to Michigan, soaring consumer interest in immunity-boosting beverages has helped carry the product into major chains like Target, Whole Foods, Meijer and 7-Eleven, putting it on track for around $15 million in sales this year, according to reps at the company’s booth at Natural Products Expo East 2021 in Philadelphia last week.
In aligning with A-B, the company has taken a long stride forward on its path towards national distribution, said CMO Ryan Coon. The deal came together in the Midwest, where Shinewater has been an existing partner with affiliated A-B distributors in Missouri, Kansas and Arkansas. During meetings over bringing the product into the Oklahoma City market, the topic of a bigger partnership was discussed and the deal came together over the subsequent months.
For Anheuser-Busch, bringing Shinewater on to its wholly owned distributor network AB ONE gives the company a fast-growing startup in a non-alcoholic category they have yet to enter. The group operates 22 distributors in Southern and Northern California, Oregon, Oklahoma, Seattle, Boston and the New York Tri-state area. According to a release, the division allows A-B to “pilot new consumer propositions, innovative technology ideas and route-to-market approaches, and then scale those best practices to its larger wholesaler system.”
In contrast to previous distribution deals with brands like Super Coffee and Ghost, Shinewater’s pact with A-B does not include a financial investment, and the beer company’s network of affiliated independent distributors are not obligated to carry the product.
“Consumers sit at the center of everything we do at Anheuser-Busch. Meeting their changing needs is why we’re focused on expanding and innovating within our beyond beer portfolio,” said Scott King, VP of Marketplace at AB ONE, in a press release. “We’re excited to work with the team at ShineWater and look forward to adding their impressive lineup of products to our distribution network.”
In terms of the product, ShineWater offers a familiar proposition to enhanced waters and hydration beverages like Propel and BodyArmor, with a range of zero-sugar fruit flavors; the latest, Watermelon Blackberry, is set to roll out next month. Yet the unique presence of 100% of Vitamin D has been the simple, on-trend message that has distinguished the brand to retailers and customers, Cook said, and has attracted consumers to trade out of some of its bigger competitors.
The A-B deal fits with ShineWater’s overall growth strategy: rather than cutting out distributors and going direct-to-consumer, Cook affirmed the company’s commitment that “our brand is going to be built in traditional retail.” Part of that includes driving innovation across other parts of the store — as in the case of a new kid-friendly (but not kid-branded) line of 6 oz. pouches which will be arriving on shelves next in November in existing flavors like Strawberry Lemon and Mixed Berry Acai.