As the popularity of nonalcoholic cocktails gain momentum, one sparking water brand sees an opportunity.
Kathy Maurella, chief marketing officer with Waterloo Sparkling Water, said the Texas company is turning to limited-time launches to expand its reach in the $8.2 billion ready-to-drink mocktail space, which is gaining steam as more consumers imbibe less.
Waterloo debuted Pomegranate Açaí this fall and brought back the seasonal offering Spiced Apple for a limited time. In collaboration with the launch, Waterloo introduced nonalcoholic cocktail recipes designed around the flavors, including ones inspired by a pear martini, negroni and ginger fizz.
Earlier this year, Waterloo debuted summer mocktail varieties of its sparkling water crafted with sommeliers, in flavors that took cues from piña coladas and mojitos. Maurella said the company took two years to perfect.
“In our research, we saw Waterloo ends up being used as a mixer, so it allowed us to identify the trend of consumers drinking less frequently and leverage the insights we had to make sure we delivered on consumer expectations,” Maurella said.
She added that Waterloo does not believe mocktails are a fad, given their health benefits, and it will continue to launch products in the category.
According to Maurella, Waterloo prides itself on understanding its consumer’s tastes and desires. Seasonal launches give it an opportunity to experiment with new tastes.
“We do brand tracking studies every six months and the one thing that is very consistent is this demand for multi-sensorial, fuller flavor sparkling water that brings unique flavor profiles to the category,” Maurella said. “You want to push the needle enough on uniqueness while making sure it’s close enough to home that it still delivers what a consumer expects from a certain flavor profile.”
Sparkling water continues to grow as consumers abandon sugary sodas and opt for healthier carbonated alternatives.
The category is projected to expand at a compound annual growth rate of 12.4% through 2032, when it will be valued at $108 billion, according to Fortune Business Insights. The category is in about two-thirds of households, according to Maurella.
Waterloo debuted in 2017 at grocers such as Whole Foods. The beverage is aimed at consumers seeking a better-for-you alternative to soda that delivers high-quality flavors with zero sugar or calories. It had $173 million in retail sales last year, according to Nielsen data cited by Waterloo.
The company currently offers 15 flavors, including Black Cherry, Lemon-Lime, Orange Vanilla and Ginger Citrus Twist.
Maurella said Waterloo sees high repeat consumers because they feel less guilty about drinking the beverage throughout the day. That ups the stakes for the brand to deliver on flavors, she said.
“At the end of the day, the number one purchase driver, even before nutritional benefits, is flavor,” Maurella said. “For us, it’s really making sure we’re tracking what’s driving the category, but doing it in a unique way, and bringing energy to the table.”
