Pureboost: Building a $100M Energy Drink Brand
San Diego-based brand sells powdered energy packets that are sold nationwide.
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Founders,
PureBoost a San Diego-based company that sells clean energy drinks is shaking up a competitive industry and is quickly becoming a contender in the energy drink sector.
What started out as a small direct-to-consumer business, has turned into a nationwide clean energy drink brand that has inked distribution deals with Walgreens, Costco.com, Walmart, among others.
Today, its products are being sold in 2,500 retailers. More recently, the startup raised nearly $3 million from over 500 individual investors. On top of that, the company has announce its on track to hit $100 million in revenue by the next five years.
Please enjoy this breakdown of Pureboost.
High-Level Overview
Founded in 2018, Pureboost sells powdered energy drinks online and major retailers.
What makes it special? The drink is formulated with “clean ingredients,” meaning it contains no sugar or sucralose, as well as harmful preservatives.
The 5-year-old company has experienced double-digit annual growth since launch and aims to become a household name in the billion-dollar energy drink category.
Founding Story
Pureboost was launched in 2018 by four co-founders: Ray Faltinsky, Brian Enge, Danny DeMichele, and Sean Ross.
Origin story: Pureboost was born out of the idea to provide a clean and healthy alternative to sugar-filled energy drinks.
Before putting major advertising behind it, the founders tested dozens of different recipes on Amazon before finding their customer-market-fit.
In 2018, the company brought in roughly $63,000 in total sales. Today, that number has surpassed over $20 million in total gross revenue.
We’re not just founders but also active parents. We’re giving everyday heroes — whether they’re saving lives, taking care of their children, or keeping the lights on — an alternative to unhealthy energy drinks,” said Brian Enge, co-founder of Pureboost.
The Product
Pureboost is a sugar-free, powdered energy beverage that markets itself as a healthy alternative to other energy drinks and diet sodas.
A package includes 100 milligrams of caffeine, and provides 4-6 hours of energy, equivalent to about one standard cups of coffee.
Each drink contains B vitamins, caffeine from green tea and an electrolyte blend.
The company claims its products help consumers stay energized. It uses influencer marketing, including collegiate athletes to generate awareness.
“Traditional energy drinks have ingredients that you can’t pronounce or have hidden sugars: inositol, potassium sorbate, sucralose,” he said. “We took all those things out. While a lot of other brands are building their image around athletics and young people, we are building ours around families looking for healthy, on-the-go, feel-good alternatives,” said Enge.
The Market
Monster Energy, which was acquired by Coca-Cola for $2 billion, has the majority market share in the U.S., followed by Red Bull.
Other competitors in energy drink sector include:
Monster (acquired for $2.15B)
Red Bull (valued at $10B+)
Rockstar (acquired for $3.86B)
Celsius (valued at $6B+)
Liquid I.V. (acquired for $400M)
Prime (valued at $1B+)
“Our differentiation is rooted in our ingredients. Unlike our competitors, we offer clean, healthy energy and hydration without sugar, artificial sweeteners, or caffeine. This resonates with our health-conscious consumer base and explains our best-in-class reorder rate,” said Sean Ross, co-founder and chief product officer at Pureboost.
The Distribution Strategy
As of today, roughly 75% of the company’s revenues come from Amazon, with over 30,000 customer reviews.
The products are currently sold in over 2,500 stores nationwide including Walgreens, Walmart, Meijer, and Ingles.
Most recently, Pureboost was added to Costco.com, and plans to launch in the retailer’s brick-and-mortar stores in the near future.
“Amazon to this day is a big part of who we are, and it’s opened up the doors too many, many retailers. We’ve got a pretty sophisticated team and we could go into so many more retailers, but we wanted to crawl before we run,” said Brian Enge.
The Takeaway
Everyday consumers are gravitating to drinks that tout vitamins, electrolytes, better taste and less sugar than traditional varieties.
The array of options will continue to boost growth in the energy-drinks category.
Pureboost is well positioned to succeed as more consumers prioritize their long-term health and seek more inclusive offerings.
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