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Consumers are seeking a greater variety of alcohol products. Funny Water, which sells a line of non-carbonated water with an alcohol content of 3.75%, believes the product will appeal broadly to consumers looking for a light, easy-to-drink beverage.
Funny Water launched in 2021 in three flavors and has since expanded to eight flavors, including Ginger Lemon, Jalapeno Lime, Blueberry Acai, and Cucumber Mint. Low-alcohol drinks do not contain any sugar.
The brand, founded by PJ Loughran and Jake Vogel, named Jarrett Malnarich as CEO last month. Malnarich has more than 20 years of experience in the CPG sector, including helping build a beverage company acquired by Nestlé and a coffee company sold to Kraft Heinz, according to a press release. He most recently took the helm. It's part of Wamame Foods, a food technology company that helps producers manufacture plant-based proteins.
The CEO said many consumers are looking for non-carbonated products that are lighter than sparkling water, beer and canned cocktails.
“Thanks to these efforts, we are receiving an overwhelmingly positive response to our products not only from Gen Z but all consumers when we attend various festivals, concerts and shows to provide samples and tastings,” said Malnarich.
The business plans to continue expanding across the U.S. and Canada this year and plans to launch non-alcoholic Funny Water soon, according to its website..
Malnarich said his experience working with “regulated and non-traditional CPG products” gives him the edge he needs to propel Funny Water into a new phase of growth. The executive said his last job involved developing products that sought to redefine categories, introducing new formulations to the market and educating consumers along the way.
“At the end of the day, what matters is that the company executes and has the resources to do it,” Malnarich said. “My approach is to continue to build on our existing base of distribution, retailers and consumers, doubling down on our markets and geographies while streamlining our operations.”
Funny Water hopes that growing its brand and gaining a sizable consumer base will open it up to more funding opportunities, which Malnarich said will allow the alcoholic water brand to reach its full potential.
As the hard seltzer category has seen sales plateau following the category's boom in 2019, companies in the beverage industry have sought to pivot to capture the next big thing. Beer giant Molson Coors launched its own non-carbonated alcoholic beverage in March, providing a refreshing treat for a happy Thursday. The company previously told Food Dive that it conducted focus groups with Gen Z consumers. Gen Z consumers said they prefer alternatives to hard sparkling water without bubbles to avoid bloating and burning sensations.
