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As the beverage industry undergoes rapid change as traditional category boundaries blur, a new watermelon drink maker believes its product has the competitive edge.
Mela Watermelon Water sells watermelon juice with zero distilled water content that can be consumed with alcohol or on its own.
The brand was founded by two Seattle-based entrepreneurs who first saw watermelon juice for sale while traveling in Vietnam in 2018. They believed there was an opportunity in the United States for juice items typically sold in Southeast Asia.
Dom Purpura, the brand's CEO who acquired the company shortly after its founding, said the market for watermelon juice products hasn't caught on as widely as the fruit itself.
“Watermelon is the favorite fruit of 83 percent of the population, but coconut water is only liked by 40 percent,” Purpura said. “We’ve taken the approach so far that Mela is for everyone. If you look at who our consumers are, it’s the mom in Los Angeles, the truck driver in Texas, the guy in the coffee shop in Miami.”
But according to Purpura, compared to many other drinks on the market, the company isn't interested in solving health problems through its health benefits.
“We don’t want to be known as a bad product, but we also don’t want to brand ourselves as the solution to hydration,” Purpura said. “It’s a never-ending game when you’re on a path where you have to constantly explain who you are as a brand.”
Beverage brands that advertise “better for you” have to face questions about whether they are actually healthy options. Products in the fast-growing water drink category, such as Unilever’s Liquid IV, tout the benefits of electrolytes while containing 11 grams of sugar per powdered stick. The brand launched a sugar-free line last year with less electrolytes.
Mela’s drink contains 100 calories per can, including 3 grams of added sugar. The brand sells four flavors: Original, Passionfruit, Pineapple and Ginger. Purpura said it sees the Gen Z-inspired artwork on the cans as a key selling point to make them stand out on shelves.
The drink is currently available in select 7-Eleven and Target stores in 42 states and on the Mela website. Part of the brand’s approach has been to target small retailers to build a presence with consumers before moving into larger stores.
“The great thing about having a strong presence in a key regional market is that it builds a community, which you don’t really get to do when you go straight into a big chain account,” Jennifer Sunnfors, Mela’s chief marketing officer, said in an interview.
As for what’s next for the brand, Mela is keeping the door open. According to Purpura, the business is currently focused on its core beverage product lineup, but in the future it may be interested in an “exit strategy,” which would include brands from the portfolios of major beverage giants.
“We’re saving money, but not to the extent that you see other brands burning money every month,” Purpura said. “We’re going to focus on making sure we’re not an all-or-nothing fad.”
Other beverage brands have also turned to watermelon in the past decade. In 2016, pop star Beyoncé invested in Wtrmln Wtr, a juice-and-electrolyte blend.
The juice category has been in a long-term decline in recent years, as many consumers associate these drinks with high sugar content. Still, the category is lucrative, currently worth $153 billion, according to iMarc forecasts, and is expected to grow at a CAGR of 3.8% through 2032.
Many brands in the space have shifted their focus to promoting the use of mixers in cocktails, including Coca-Cola's Simply brand, which launched a lineup of mixer drinks last year.
