“Flow’s Strategic Expansion and Sustainability Efforts Amid Rising Demand for Functional Beverages”
As the popularity of functional foods and beverages continues to rise among consumers, companies that can provide these benefits—especially in today’s landscape—are likely to thrive. Flow aligns perfectly with many current trends. While the health advantages of alkaline water are still a topic of debate, enthusiasts claim that its elevated pH offers several benefits, such as reducing blood acidity, enhancing metabolism, and sustaining energy levels. Flow distinguishes itself from competitors by sourcing mineral-rich, naturally alkaline water directly from springs, boasting a pH of 8.1 and containing essential minerals like magnesium, calcium, citrate, zinc, copper, and manganese.
Beyond its natural water, Flow has additional advantages. Its product is packaged in a paper carton topped with a plant-based cap, making it 100% recyclable and composed of over two-thirds renewable materials, which enhances its sustainability credentials. Furthermore, Flow is a Certified B Corp, indicating its commitment to high standards of corporate responsibility.
Flow is actively pursuing rapid expansion. Although the company is based in Canada, most of its business occurs in the U.S. In August, Flow launched a spring in rural Virginia and a nearby bottling facility in Verona, marking its first operational site in the United States. Reichenbach mentioned to BevNet that part of the funding from its latest financing round will be allocated to further develop this 115,000-square-foot facility. The company has experienced significant sales growth during the pandemic, reporting a 25% increase in retail sales and a 50% surge in e-commerce sales. Flow’s e-commerce model aligns well with the contemporary trend of consumers staying home, and it offers a subscription service that allows customers to receive cases of various Flow flavors regularly. The company aims to increase the number of subscribers while enhancing its customer service and support.
Analysts believe that brands providing exceptional service through innovative distribution channels today will likely retain their customers even as society returns to normal. Flow is also planning to launch additional trendy products. In February, the company acquired BOONS Collagen Water and intends to introduce three flavors of collagen-infused alkaline water this month. Collagen is currently a sought-after functional ingredient, with many consumers believing it can enhance skin elasticity, reduce signs of aging, and alleviate joint pain. Given the rapid growth of the global collagen market—projected by Grand View Research to reach $6.6 billion by 2025 with an annual growth rate of 6.5%—this investment could yield significant returns.
However, the only uncertainty in Flow’s near future stems from its positioning as a premium product. As the economy slides toward recession and unemployment rates reach record highs, many consumers will likely seek to maximize their budgets. A survey conducted by the innovation lab Mattson revealed that nearly half of food and beverage industry leaders believe that value will be the foremost trend as the pandemic subsides. Whether consumers will shift away from alkaline water back to traditional tap options remains to be seen. Nonetheless, it may be prudent for Flow to utilize some of its new funds to keep prices competitive, ensuring that financially strained consumers do not perceive its products as a luxury.
