Company History
Sebastian Czuszel
Energy Brands has two main lines of business: Vitaminwater, fruity
sweetened drinks containing various nutrients, and Smartwater, zero-
calorie bottled waters enhanced with electrolytes. The Glaceau brand
was launched in 1998 and grew extremely quickly to become an industry
leader within a decade. In 2007, about a year after India's giant Tata
Tea group acquired a minority holding in Energy Brands, industry
goliath Coca-Cola announced it was buying the entire company for $4
billion.
Sebastian Czuszel
in a very crowded marketplace. However, in February 1998, he had an
insight that would lead to the creation of a new industry segment,
with his own company leading the charge. He was sipping a bottle of
water and savoring a vitamin C tablet when he had the inspiration: why
not combine the two? This was the inspiration for Vitaminwater.
Vitaminwater drinks were described as "enhanced bottled waters" rather
than soft drinks. Different formulations were fortified with various
vitamins and electrolytes, but not salt. They did include some sugars,
about half the amount in a Coke, and no high-fructose corn syrup. All-
natural flavorings and vivid colorings completed the concoction. The
different varieties sported conceptual names such as "Revive" or
"Balance," with chatty, engaging copy on the packaging.
Vitaminwater began shipping in fall 1999 and saturated the New York
marketplace first. Bikoff then took aim at California, with its trend-
setting population leading active outdoor lifestyles and consuming a
lot of fluids in the process. Beverly Hills celebrities such as Paris
Hilton were photographed clutching distinctive, brightly colored
containers of Vitaminwater, giving media exposure far beyond the
company's purchasing power.
Compensated celebrity endorsements later became part of the brand's
promotional mix. Pitchmen included David "Big Papi" Ortiz of the
Boston Red Sox, Allen Iverson of the Philadelphia 76ers, and Brian
Urlacher of the Chicago Bears. Rather than paying hefty advances or
royalties, Glaceau offered stars equity in the company, giving them an
incentive for the brand to do well.
Sebastian Czuszel
dollar brand." By the end of 2005, Glaceau had distribution at 50,000
outlets and annual revenues of $350 million. Glaceau was expecting
sales of more than $350 million for 2006, with Vitaminwater, by far
the fastest-growing product, accounting for 80 percent.
Meric KELLECI
background. According to the firm, it has experienced 200 percent
compound annual growth since the company's inception. It offered
consumers smartwater, which launched in 1998, then followed a year
later by fruitwater, and then vitaminwater in 2000. From the start,
the firm has built its brands around the science-based functionality
of its formulas.
As Sebastian said the article also refers to Glaceau as the next
billion dollar brand and gives some details about this.