laitimes

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

author:FBIF Food & Beverage Innovation

One day more than ten years ago, a lady named Kara Goldin was introduced by a friend to get in touch with a well-known beverage company in the United States. She told the other party that she had made a sugar-free "flavored water" called Hint in her spare time, and that it was already selling well at Whole Foods Market, and that she hoped to be acquired by the company. As a result, the contact person of the enterprise rejected her after hearing about it, and said "Honey, Americans only like sweet." ”[1]

However, the other party's refusal gave Goldin the motivation to continue to run Hint. Since then, she has not only made a side hustle her main business, but the brand has reached a valuation of $220 million in 2021 [2].

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

Image source: Hint

Not only that, but Shint later became very popular in Silicon Valley, USA, and "hand-squeezed" sugary drinks from the office refrigerators of many technology companies in Silicon Valley, becoming the "designated drink" for many companies. [3] It is reported that a design firm based in Silicon Valley has placed a two- to three-year Hint purchase order at a time, and there is also a "hint effect" in some Silicon Valley technology companies, that is, after the introduction of hint in the office, employees consume more water, so the frequency of running to the toilet also increases. [4]

Unlike sweet "flavored water" products such as Suntory Lemon Water and Uni-President Haizhiyan, this "flavored water" that is popular in Silicon Valley does not add sugar or sugar substitutes, and completely restores the natural flavor of fruits. From the appearance, it is as transparent as ordinary water, open the bottle cap, but you can smell the aroma of fruit, and drink it tastes close to tasteless water, only after drinking, there will be a hint of fruity "sweetness".

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

Image source: Hint

According to the official website, there are currently 23 flavors (including 12 single flavors and 11 blended flavors) under Hint's "flavored water" category, and if you add the products that have been removed from the shelves, Hint has developed far more than 23 flavors. As for the flavor recipes that make them differentiated, Shint is strictly secretive, only claiming that the ingredients that give it flavor come from natural fruits. [5]

It is also the differentiated positioning of "good taste and health" that made Hint popular in Silicon Valley first, and then accepted by more Americans. Today, Shint has also entered mainstream channels such as Costco and Walmart in the United States.

What is the story behind Goldin's invention of a "delicious water"? How did Hint start in Silicon Valley and bring a "new variety" to the general public? What innovative ideas can we learn from Hint?

1. In order to make her family fall in love with drinking water, she wants to make a bottle of "delicious water"

The idea of inventing a "good water" began with the weight loss experience of the founder, Goldin.

Around 2005, Goldin, who was pregnant with her fourth child, skyrocketed in weight and had crazy acne on her face. Goldin believes that pregnancy was only one reason, but another important reason was that she had to drink 10 to 12 cans of diet Coke a day at the time. Although it was sugar-free, when Goldin flipped the aluminum can to the side of the ingredient list, he found that there were still various ingredients on it that he couldn't understand.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

Kara Goldin; Image source: Facebook@Hint

"I decided that I couldn't take those incomprehensible ingredients into my body anymore." Goldin decided to use water instead of Coke. After three months, she lost a lot of weight and her skin was in better condition. [6]

After feeling the benefits of drinking water, Goldin wanted her family to drink water together, but was unanimously opposed. The reason is simple, although the water is healthy, it has no taste.

As a result, Goldin initially came up with the idea of "making water taste good". To this end, she began to add slices of fruit to the kettle to make the water taste. This trick is so effective that even the little ones love to drink water.

Seeing how popular the water with sliced fruit was in her own home, Goldin came up with the idea to make it into a packaged product and sell it in the supermarket. However, there are two key challenges to be solved in order for this idea to be implemented.

First of all, fresh fruits have a short shelf life, and the shelf life of the product must be extended in order to be sold externally. At that time, the two most common ways to extend the shelf life in the beverage industry were adding preservatives and high-temperature sterilization, but they were not suitable for Goldin, who was not healthy enough to "have and want", and the latter would destroy the natural flavor of the fruit.

High-temperature disinfection doesn't work, so "low-temperature disinfection". As a result, Goldin used the pasteurization method (also known as low-temperature sterilization method, which sterilizes milk by briefly heating it at a temperature below 100 degrees Celsius) to make its products, and achieved mass production. [7]

The second thing to solve is to restore the natural flavor of the fruit to the greatest extent. Although Hint keeps the recipes used in the products strictly secret, it is known that in order to capture and restore the flavor of the fruit to the greatest extent, Hint's requirements are very strict. For example, the Ginger Sparkling product, launched in 2019, took more than a decade to develop the recipe to capture the "bold and spicy aroma of ginger". [8]

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

Hint ginger flavored sparkling water; Image courtesy of Milled

During the development phase of the product, Goldin sought advice from Whole Foods Market, which sells organic food, and was therefore concerned by the latter. So Whole Foods became Hint's "starting point". The day after the product was manufactured, Goldin took 10 cases of Hint to Whole Foods and sold them "with ulterior motives" next to the vitamin water. Goldin said that this was done because vitamin water was high in sugar at the time, and it was possible to visually compare which was healthier when put together. As a result of this strategy, all 10 cases of Hint were sold out the next day. [4]

Six months after Hint's listing, it has expanded to 10 markets around the Bay Area. [6] As the business grew, Goldin could no longer cope with it on his own, so he had the idea of seeking an acquisition, followed by the rejection at the beginning.

In addition to igniting the fighting spirit, Goldin, who was rejected, should also be thinking about a question: how should Hint find his target group when he breaks away from the whole food supermarket, which focuses on organic health?

Second, it is popular in Silicon Valley because of an accident

A chance encounter changes Hint's fate.

During the time when she was working on Hint as a side hustle, Goldin also occasionally went to tech companies for interviews. One time Goldin got an interview with Google. In an exchange with the interviewer, Goldin revealed that he was working on Hint's startup project, which piqued the interviewer's interest. [7]

As a result, Goldin didn't pass the interview, but Shint did.

Shint first became popular within Google, and then spread through word of mouth, becoming known to more technology companies in Silicon Valley, and becoming the "designated drink" of many companies' offices.

After Hint entered the office, Google employees invented the new term "Hint Hoarding", which means that every time the office buys a new Hint, Google employees will take a few more bottles and put them in the drawer to "hoard". Foudation Framework, a Silicon Valley-based design firm, once placed a two- to three-year Hint purchase order at a time. [4]

The emergence of Hint has also imperceptibly affected the office status of employees in Silicon Valley. For example, there is a "hint effect" on LinkedIn, which refers to the fact that employees start to consume more water after the introduction of hint in the office, so the frequency of running to the toilet increases.

Hint has also "infiltrated" film and television works. In a dialogue scene of the previous hit American drama "Silicon Valley", a bottle of blackberry-flavored Hint appeared on the coffee table.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

the American drama "Silicon Valley"; Image courtesy of Forbes

Hint has also attracted a lot of "bigwig" fans. It is reported that Sheryl Sandberg, the former chief operating officer of Facebook and the first female board member of Facebook, is a loyal fan of Hint, and American singer John Legend not only likes to drink Hint, but also becomes an investor in Hint. [9]

Although the popularity of Hint in Silicon Valley was unexpected, it turned out that Silicon Valley is indeed a very suitable "soil" for Hint to grow.

First of all, Silicon Valley, as an area where technology companies and information industry start-ups gather, has a higher acceptance of "new trends", which also gives some innovative brands the opportunity to go out of the circle in Silicon Valley. For example, Patagonia, an outdoor apparel brand that emphasizes environmental protection and donates all equity to the earth, and Blue Bottle Coffee, which sells only coffee beans that are freshly roasted within 48 hours. The circle culture of Silicon Valley allows these brands with innovative ideas to quickly achieve word-of-mouth communication.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

图片来源:Blue Bottle Coffee官方

Hint's "sugar-free" concept is also a new trend that is easy to attract the attention of Silicon Valley people in the United States around 2010. Since 2015, many states in the United States have imposed a "sugar tax" on designated distributors of sugar-sweetened beverages. San Francisco, where Silicon Valley is located, also began to implement corresponding taxation policies in 2018. [10] "Sugar reduction" became a trend, and Hint naturally grabbed the minds of health-conscious Silicon Valley employees.

The founder of Foundation Framework, a Silicon Valley design firm, once said, "We chose Hint because we sit a lot (and therefore pay more attention to our health) and because society is restricting sugary drinks." With Hint, we don't have to sacrifice taste for the sake of physical benefits. ”[4]

What made Hint popular in Silicon Valley was not only the healthy brand concept, but also the brand story. The story of Goldin's "R&D" of Shint in the kitchen of his home is very similar to the story of "garage startup" of Silicon Valley technology companies such as Google, Apple, and HP, which has triggered deep empathy and word-of-mouth among Silicon Valley employees.

3. After Silicon Valley is out of the circle, how can Hint conquer more consumers?

Entering Silicon Valley not only gave Hint a strong endorsement, but also helped Hint enrich the brand's audience.

However, Hint, which entered the Whole Foods Store and Silicon Valley office, is still a "channel-limited brand". To become a more popular brand, Hint needs to go into more channels and educate consumers.

1. The founder personally "controls" the mainstream channels

Goldin likes to be "skeptical" of his partners, which in turn pushes Hint to strengthen his control over the channel.

The most intuitive manifestation is that during the epidemic, Goldin found that Hint was always out of stock at Target. "Is it really out of stock, or is the staff too busy to put the product on the shelf?" Goldin would visit Target's warehouse with such questions, and if the stock was out just because the staff was not doing their job, she would put the goods on the shelves herself. [11]

While Hint's online business started on Amazon, Goldin is also suspicious of Amazon. "There are more than 20 products in Hint, but on Amazon shoppers can only buy a few products that the platform has chosen," Goldin said, "and we don't have an advantage on an integrated platform like Amazon because people prioritize toilet paper over water when shopping." ”

In this regard, Shint began to deploy the DTC business around 2015. The DTC model, or "Direct to Consumer", allows brands to bypass channels and sell products directly to consumers and establish a direct connection with consumers.

Under the DTC model, consumers place orders through Hint's official website, which also provides Hint with the opportunity to "talk" directly with consumers. With such an opportunity, Hint can not only show more products to consumers, but also improve the stickiness with consumers through preferential activities.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

At present, on Hint's official website, you can still see a variety of preferential programs offered by the brand for consumers who shop on the website; Image source: Hint's official website

After the epidemic, the demand for online shopping of American consumers increased, and the DTC model once ushered in an explosion. Hint's years of deployment in the DTC model have also paid off, with the overall traffic of Hint's DTC channel increasing by 50%[12] in the 18 months since the start of the pandemic, and the sales share of DTC channels has also reached 55%. [13]

In addition to channel partners, Goldin is also suspicious of suppliers. Goldin said that in order to better control the quality, Hint insisted that all aspects of procurement be located in the United States, rather than in developing countries where the cost is lower, because it is "easier to maintain".

And this strategy of supply chain localization made Shint unexpectedly favored by Costco. In March 2020, due to the epidemic, many overseas factories and logistics networks stopped operating, which caused many of Costco's packaged water suppliers to be unable to continue supplying. In this case, Costco contacted Hint and learned that all of Hint's production was completed in the United States, and Costco quickly signed an agreement with Hint and began selling Hint's products nationwide in June 2020.

Currently, Costco has 610 stores in the United States,[14] entering Costco, providing an opportunity for Hint to reach a larger consumer base.

2. There are 23 flavors, breaking the stereotype of "healthy = boring".

Initially, Goldin added slices of fruit to the water, which made the family fall in love with drinking water. Then, to make more people fall in love with drinking water, we should launch more fruit flavors to cover more consumers!

According to Hint's official website, there are currently 12 single fruit flavors under Hint's "flavored water" category, in addition to 11 mixed fruit flavors.

In order to allow consumers browsing the product to intuitively feel the natural flavor of different fruits when they have not tasted the product, Shint has also made a special design for the packaging of the product. The packaging of each product is printed with a physical picture of the corresponding fruit, which not only is very close to the real fruit in color and texture, but also directly shows the state of the fruit after cutting or peeling it on some packaging to highlight the freshness.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

Image source: Hint

The introduction of different flavors also provides an opportunity for Hint to interact with consumers.

For example, on X, Hint's official account regularly posts flavor-related creative content. Prior to the launch of Citrus Flavor on April 30, Hint provided fans with "clues" about the flavor of the new product in the form of emojis, which caused a lot of speculation and discussion among fans, and the post received 103 comments and 6,452 views.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

Image source: X@hint

In March of this year, Hint also launched a "flavor contest" on X, where fans voted for the most popular flavors.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

Image source: X@hint

Flavor innovation is also inseparable from "revitalization". For example, on April Fool's Day, Hint joked that he launched an April Fool's Day-only pickled cucumber-flavored water.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

Image source: X@hint

Constant flavor innovation and interactive gameplay around new flavors can help break the consumer's perception of "healthy = boring" and expand the brand's audience.

3. Strengthening the "health" positioning is not only a way to "sell water".

Hint's business is not limited to "selling water". In 2017, Hint launched a sunscreen, and in addition, Hint has also launched personal care products such as deodorant and hand sanitizer.

A bottle of "smelling and drinking tasteless" drink is popular in Silicon Valley, with a valuation of $220 million!

图片来源:Business Insider

Hint is not blindly "cross-line". Its personal care products, like the sugar-free, clean-topped Hint flavored water, are also "chemical-free". For Hint, the launch of this product will not only not dilute Hint's brand value, but will also strengthen Hint's positioning as "natural" and "healthy".

The concept of "good for human health" has also risen to a positive and healthy value, which has penetrated into the brand operation process of Hint.

For example, Goldin has said that another important consideration for setting up the supply chain in China is "sustainable procurement". Hint's eight factories are currently scattered across the U.S. with the goal of reducing greenhouse gas emissions from long-distance transportation. In addition, Hint has set up a "backhaul system" that allows other businesses to transport goods on the way back to the factory to increase the utilization of empty trucks. [11]

In April, Hint also partnered with Feeding America, a U.S.-based charity, to launch a donation campaign in which Hint donates $1 to Feeding America for every bottle of Hint with the "Feeding America" logo on the retailer's shelves.

According to Mondelēz International's 2023 Global Snack Status Report, nine out of ten consumers around the world will give priority to buying products from brands with ethical sourcing strategies. [15] Thus, by doing good, Hint won the hearts and minds of consumers and strengthened the brand's positioning as "healthy". Any act of kindness that is widely recognized by consumers is an external manifestation driven by the core of the brand's service spirit. Ever since Goldin developed a "flavored water" in the kitchen that makes his family fall in love with drinking water, Hint has been infused with the DNA of doing good.

IV. Conclusion

Domestic consumers have also put forward higher requirements for drinking water. Water should not only be healthy, but also delicious, and the rise of sugar-free tea is the best reflection of this "both want and want" mentality, and in the future, this will also guide the direction of beverage brand product innovation.

Although Hint's flavor formula is not disclosed to the public, its product innovation ideas, marketing methods to make a bottle of water interesting, and the ultimate control of channels are all worthy of reference by domestic beverage brands.

Reference Sources:

[1] Hint's Founder Was Inspired By A Coke Executive Who Told Her, 'Sweetie, Americans Like Sweet!' ,2015.7,Forbes

[2] HOW KARA GOLDIN BUILT A $220 MILLION COMPANY,2022.8,THE SUITE

[3] Hint Water’s Kara Goldin Is A Flavored-Water Magnate. Just Don’t Call Her “Sweetie”,2014.5,Fast Company

[4] How Hint Water Has Become The De Facto Official Drink Of Silicon Valley,2017.6,Forbes

[5] Hint官网“Hint's Sustainability Goals”版块

[6] Beautiful Thinkers: A conversation with Kara Goldin, founder and CEO of Hint, on being called Sweetie, becoming an accidental entrepreneur and why we need to clean up our water,2019.6,Medium

[7] From a sentence criticized by others, I heard a business opportunity of 90 million US dollars! The vice president of a technology company turned anger into motivation and successfully created a natural flavored water brand that swept Silicon Valley, and in December 2019, Innovation Latte

[8] The global flavored water has exceeded 10 billion US dollars, and the next opportunity for the "small but beautiful" flavored water market is ......, in October 2019, FBIF Food and Beverage Innovation

[9] HINT CEO KARA GOLDIN ON WORKING WITH CELEBRITY INVESTORS LIKE JOHN LEGEND,2020.1,bobbirebell

[10] Soda Taxes Approved in Four Cities, Vote Looms in Chicago’s Cook County,2016.11,华尔街日报

[11] Hint Water Embraces Its All-American Supply Chain,ChiefExecutive

[12] How Putting Customers First Brought Kara Goldin to the Top,2021.11,Worth

[13] How Hint Water built and maintains its booming online business,2020.8,New Hope

[14] Number ofCostco stores in the United States in 2024,2024.5,ScrapeHero

[15] "Global State of Snacks 2023 Report," Mondelēz International, March 2024

This article is the original of FBIF Food and Beverage Innovation, author: Pride, editor: Bobo, please contact for authorization for reprinting.

Read on