🟣 Issue No. 13: Liquid I.V. $500 Million Exit Playbook

Hey, friends! Want to know how Liquid I.V. grew from a simple idea into a $500M acquisition by Unilever?

It all started with a mission to improve hydration using science-backed formulas, and they scaled fast by combining grassroots retail demos with strategic celebrity partnerships. Their secret? Balancing Amazon’s reach with a strong DTC focus to control the brand experience.

Oh, and did you know Justin Bieber and Kendall Jenner were early investors? It’s all about building authentic relationships and creating a product people believe in.

Keep reading...

On the Pod 🎧

Lastest episodes:

• How to Win this Q4 → Kunle Campbell
  

• How to Maximize Your eCommerce Marketing Efficiency with the PROFIT Framework → Kunle Campbell

• S9 EP54: Product Innovation Deep Dive: How to Develop a Best-Selling SKU → Kunle Campbell

• S9 EP53: The New Playbook for Scaling Health & Wellness eCommerce Brands in 2024 → Kunle Campbell

• S9 E52: From $10M → $20M: How Tiege Hanley Doubled Revenue While Staying Profitable → Kelley Thornton, CEO

• S9:E51: Ex-PepsiCo Strategist Unveils Brand Positioning Frameworks that Transform DTC Brands → Kathy Guzman

$100M+ BRAND STORIES

The Growth Blueprint Behind Liquid I.V.’s Rise to a $500M Brand

Today, we dive into Liquid I.V., the hydration brand that revolutionized how people stay hydrated. From its humble beginnings to its $500 million acquisition by Unilever, Liquid I.V. has become a leader in the electrolyte drink mix category, offering rapid hydration solutions with scientifically-backed, clean ingredients.

Founding and Early Proof of Concept

Liquid I.V. was founded in 2012 by Brandin Cohen, with co-founders Cameron Killeen and Hayden Fulstone. The inspiration came from Cohen’s experience working with professional athletes who were using Pedialyte—a children’s rehydration solution—to stay hydrated. Cohen recognized a gap in the market and sought to develop a product based on Oral Rehydration Solution (ORS) technology, a method pioneered by the World Health Organization to treat dehydration. This innovation gave Liquid I.V. a strong product-market fit from the start, differentiating it as a scientifically advanced hydration solution for adults.

Timestamps:

• 2012: Official launch of Liquid I.V.

Proof of Concept Through Retail Demos

Liquid I.V. gained early traction through grassroots demos in local stores. A major breakthrough came in 2016 at the ECRM Trade Show, where the product was voted the “Best New Item of 2016.” This success helped the brand secure early retail partnerships with Whole Foods and other national chains. Reflecting on this pivotal moment, Cohen remarked during an interview, “I would fly across the country, take 15-minute meetings, and demo the product myself in Whole Foods. It was all about building trust and showing that we had something special.”

Timestamps:

• 2015-2016: Early proof of concept through in-store demos, leading to retail expansion.

eCommerce Strategy and Growth

eCommerce played a crucial role in Liquid I.V.'s growth, with a balanced strategy that combined direct-to-consumer (DTC) sales with its presence on Amazon. Initially, the brand was sold through retail channels, but eCommerce quickly became a dominant growth driver. According to Cohen, Amazon was key for scale: “You have to be on Amazon because that’s where so many people shop, but we focus on our DTC channel for the deep brand experience.”

This strategy allowed Liquid I.V. to leverage Amazon for volume while maintaining control of customer engagement through its DTC website. The DTC channel provided opportunities for direct customer interaction, better margins, and opportunities to communicate the brand’s mission and values. Liquid I.V.’s early investment in Facebook and Google ads helped build buzz and drive eCommerce sales, allowing them to expand their customer base online.

Amazon vs. DTC

While Amazon provided essential exposure to a larger audience, Liquid I.V. managed the tension between maintaining the brand experience through DTC and maximizing its market share on the platform. This dual-channel approach was instrumental in Liquid I.V.'s rapid expansion.

Total Addressable Market (TAM) and Scaling

Liquid I.V.’s scientifically-backed formula and broad consumer appeal allowed it to tap into the growing global electrolyte hydration market, which was valued at $25 billion at the time. This large TAM provided ample room for Liquid I.V. to scale, both domestically and internationally. In a podcast interview, Brandin said, "We knew the market was huge—hydration is fundamental to everyone. The key was making sure we were everywhere the customer needed us."

Major Milestones

1. Expansion into Retail (2016): The brand’s successful trade show demos opened doors to major retailers like Whole Foods, Target, and CVS, significantly boosting its retail footprint.

2. DTC & Amazon Growth: Liquid I.V. saw exponential growth through eCommerce platforms, with Amazon and its own DTC website driving significant online sales.

3. Unilever Acquisition (2020): In September 2020, Unilever acquired Liquid I.V. for $500 million, reportedly at a 5X revenue multiple, highlighting the brand's immense growth potential and rewarding early investors.

Timestamps:

• September 2020: Liquid I.V. was acquired by Unilever for $500 million.

Influencer Marketing and Celebrity Backing

Strategic partnerships with celebrities and influencers played a key role in Liquid I.V.’s rapid growth. High-profile figures like Kendall Jenner, Justin Bieber, Kevin Hart, Gary Vaynerchuk, and Scooter Braun publicly endorsed and invested in the brand. This influencer-driven strategy helped amplify the brand’s reach and visibility among mainstream consumers.

Brandin spoke about how these partnerships were more than just transactional relationships. "The cool part is we met with these celebrities directly and developed real relationships. They weren’t just paid promoters; they truly believed in what we were building," Cohen explained during an interview on the ETD Podcast .

He further described how Kendall Jenner’s involvement came about: “Kendall Jenner’s team had emailed us 11 days earlier, but we missed it because we were understaffed in customer service due to a huge sale. Literally five days later, money was wired in, like I hadn’t even talked to her but she just wired the money,” Cohen revealed during the same podcast .

Cohen also highlighted Justin Bieber's involvement and his direct partnerships with Scooter Braun. During the Coffee & Commerce episode, Cohen mentioned, “Scooter and I are leading this round and XYZ are in... literally five days later, money wired in... with Kendall Jenner and Justin Bieber involved” .

Gary Vaynerchuk, another key investor and supporter, was also instrumental in promoting Liquid I.V. “He shared everything he was supposed to... He was awesome with it,” Cohen remarked on the Drinking Bros Podcast.

These personal connections helped Liquid I.V. leverage the reach of influential figures, bringing greater brand awareness and credibility to their mission-driven hydration solutions.

The Wrap…

For health and wellness brand operators, Liquid I.V.’s growth story provides several key takeaways:

1. Differentiate with Science: By offering a product rooted in scientifically-backed research, Liquid I.V. stood out in a competitive market.

2. Leverage eCommerce: Liquid I.V. balanced both Amazon and DTC channels to scale effectively. Ensure your brand is visible on major platforms while using DTC to maintain direct customer relationships.

3. Attract Strategic Investors: Liquid I.V.'s ability to build early momentum attracted celebrity investors and strategic partnerships, propelling the brand to new heights.

4. Influencer Marketing: Genuine relationships with high-profile influencers amplified Liquid I.V.’s reach. Partner with influencers who truly believe in your product.

5. Mission-Driven Growth: Staying true to its mission of global hydration helped Liquid I.V. resonate deeply with consumers, contributing to its long-term success.

I hope this case study serves as inspiration and offers you strategies to replicate this level of success in your own brand journey.

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HEALTH IS WEALTH

Why You Might Need Electrolytes to Stay Focused

Hydration is key for everything: better energy, mental clarity, and even workout performance. But it’s not just about drinking water; we also need electrolytes to keep things balanced.

When we sweat, we lose electrolytes like sodium, potassium, and magnesium, which help regulate muscle function, hydration levels, and nerve signals. A study found that replenishing electrolytes after physical activity not only prevents dehydration but also reduces muscle cramps and improves recovery​.

For mental clarity, staying hydrated with a proper balance of electrolytes keeps your brain sharp. Research shows that even mild dehydration can impair cognitive function and mood, making it harder to concentrate during the day.

If you’re active, or just want to maintain optimal health, adding electrolytes to your hydration routine can be a game-changer. Electrolyte drinks or supplements ensure your body absorbs fluids effectively, especially after a tough workout or a hot day.

Takeaway: Hydrate smarter by including electrolytes. I’ve been using LMNT lately, and it’s been a great boost!