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Under new leadership team, Hint Water has undertaken thorough revamp of its look and positioning, effort that will be brought to life by new campaign next year that will receive nearly double the marketing spend of this year. Among other developments in what CEO Mike Pengue terms the brand's "rebirth" era, it's extending its recently inaugurated can packaging format from sparkling water to core still line. And it's imposed greater order on pricing that too often enticed even loyal customers into shopping on deal, Gatorade-style. Partner agency in much of branding and marketing activity is NY-based Mythology, whose bev clients over the years have included Coca-Cola, Honest Tea and Staple Gin. That's progress report from Pengue, longtime Nestle exec more recently at Zoa Energy who was brought in as new CEO last Nov as controlling shareholder Verlinvest sought to juice growth and resume search for an exit after nearly 2 decades of nurturing unsweetened essence water founded by mom and dad who wanted better bev options for their young kids. For Pengue, a key means of doing so is to dial up brand's fun and approachability while keeping hydration message front & center.The new packaging due early next year scraps artsy, upscale graphic look in favor of large mouth-watering photos of fruit, shot in NY just 2 weeks ago, all arrayed against a light blue background intended to connote refreshment. Some key aspects of past look were regarded as keepers: the vertical logo, the general look of the font. Tho brand has base of Genzennial enthusiasts, CEO thinks it can do better to expand base within that demo given the many who realize they need to do more to hydrate themselves but have yet to give the brand a try. One motive, he said frankly, is just to "project newness" to energize trade partners and consumers. He's been encouraged by recent meetings with key retail partners like Walmart/Sam's Club, Target, Costco and HEB who demonstrated strong support for new direction, he reported.As he's gotten his feet wet, Pengue has been pleased to forge strong partnership with Verlinvest and its point men Clement Pointillant and Marc-David Bismuth as well as key trade partners like copacker Niagara and DSD houses Big Geyser and Polar. (No mention of husband & wife founders, with whom co apparently continues to be in litigation over what they allege to have been their wrongful termination running the company.) Pengue has built on work started by prior CEO Blair Owens to move co toward the black operationally and "now, it's all about the brand," he told us in update yesterday, his first extended remarks since taking helm 10 mos ago.Pengue, recall, was longtime bottled-water exec at Dannon and Nestle Waters North America who moved to subsequent roles on more entrepreneurial side at Bai, Keurig Green Mountain and Zoa Energy. Tho he's based in Newport, RI, that's a hop-skip away from key NY and Boston markets for SF-based co. At time of his arrival last Nov, Hint also brought on as CFO the Pepsi and Nestle vet Kevin Benmoussa, who'd also had fruitful run steering Vita Coco thru its IPO. (Like Hint, Vita Coco was longtime Verlinvest holding.)Among key staff additions on Pengue's watch has been Perrier and Nestle vet Mike Atkins, who'd also had a run at Q mixers brand. He came on as svp sales in Jan. The Vita Coco and Anheuser-Busch vet Alli Cullman joined as svp marketing in Mar after 3 yrs at Zola wedding co and is immersed in developing new campaign. One tier down, the 16-yr Nestle vet John Martino joined in Jun to manage regional grocery accts across US as well as DSD network, which also includes New England Distributing. And Pete Minitti is managing distribs and retail accts in key Northeast region.Among other org changes Pengue cited has been new team of sales execs specific to key national and regional retail accts with view that "we want to own these accounts" rather than have relationship diluted by third party. No change in stance on DSD distribution after effort to return to broader DSD presence under prior leadership ran up against economic challenges in segment where margins can be tite. Pengue said co remains open to opportunistic DSD alliances where it makes sense but there's no broad push to enlist new partners. Years ago Hint boasted broad US network of beer houses but it found path to success working large-format retailers like grocers, often directly.That does beg the question of how, then, Hint can do better to exploit impulse occasions. With its strong presence up & down the street, Big Geyser seems to have done that effectively in NY. How to do it without DSD? Pengue said that's among the conversations he's having now with Atkins.Then there's the long-delayed push into cans. That's a format the founders wouldn't consider on grounds that they represent no sustainability improvement over brand's lightweighted PET bottles. Whatever the merits of that stance, it was getting brand barred from expanding array of accounts, from corporate campuses to airports. Prior CEO Owens added them as soon as pandemic-era can squeeze had abated.The cans started with sparkling version of Hint. That comprises just 10% of total biz and vies in far more crowded sparkling essence water segment, but it was in synch with shoppers' expectations for cans and proved to be a hit, including at Sprouts and regional chains, Pengue reported. Now it's time for the core still water to add them as an option, with due care taken to flag clearly that those are not carbonated entries. That's duly begun at Meta and Google campuses, where Hint vaulted into #1 spot among all bevs, he said. The still-water cans also are performing well on Amazon even before any marketing support has kicked in. Retail is next, backed by a specific component of pending campaign.As AOL vets, Hint founders showed early commitment to proving that bevs could be workable ecomm category despite their weight and bulk. Their hunch was validated and ecomm has continued to comprise substantial part of biz. Pengue has augmented that team and tilted efforts away from DTC platform more toward outside partners like Amazon, Walmart.com, DoorDash and Gopuff. For heavy users, DrinkHint.com still is productive platform and it's now getting website refresh. Pricing also has moved away from barrage of 36-for-$36 and 96-for-$96 deals that succeeded in pulling in new users who then proved difficult to wean from concessionary deals. As noted, that's been part of broader push to rationalize prices that Mike described as "all over the place" among grocery, mass and club. As happened with ecomm deals, too-wide pricing range had consumers too often shopping on deals rather than at premium price.Hint also has been widening array of flavors. Brand actually had started with more diverse range but retreated to core flavors when managers realized that retailers often ordered more exotic, but lower-performing, flavors to avoid duplication with other brands, at cost to Hint's velocity. Now the range is being diversified, but in carefully targeted way. After ice-cream-themed LTOs intro'd for summer proved incremental Hint now has offered winter pack with flavors like Spiced Pear and Cranberry Orange. Among other changes, the co will revamp variety packs whose overlapping flavors proved confusing to consumers. But it will continue with SmashUps flavor innovations like Peppermint Bark that have struck a chord with consumers. Given reality that at retail the variety packs are likely to lurk on lower shelves, co is making it easier for shoppers to read what flavors they're getting.For now the priority is on operating co efficiently and bringing the new marketing to life. Asked whether co is back to contemplating an IPO, or perhaps considering a capital raise, Pengue replied, "right now, an easy no on both." He reiterated that co is in very good shape after recent years' rightsizing efforts and, as his visits to key retailers and distributors brought home to him, in a good place with trade partners. "Every single customer all get it, and all are rooting for us," he declared.

Hint Water 'Rebirth' Brings New Look, New Campaign with Stepped-Up Spend; Sparkling Cans Head to Retail; Pricing Rationalized

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