As the beverage industry undergoes a rapid transformation with traditional category lines blurred, an upstart watermelon beverage maker believes its product can cut through the noise.
Mela Watermelon Water sells zero-proof watermelon juice, designed to be consumed alone or with alcohol.
The brand was founded by two Seattle entrepreneurs who first noticed watermelon water being sold while traveling in Vietnam in 2018. They believed there was an opening for the juice items, typically sold in Southeast Asia, in the U.S.
Dom Purpura, the brand’s CEO who took over the company soon after it was formed, said compared to other juice items, the market for watermelon water products had not been widespread relative to the fruit’s popularity.
“Watermelon is a fruit loved by 83 percent of the population, but coconut water is only loved by 40 percent,” Purpura said. “We have taken the approach thus far of making sure Mela is for everybody. When we look at who our consumers are, it’s moms in Los Angeles, it’s truck drivers in Texas, it’s a person in a Miami coffee shop.”
But compared to many other drinks on the market, the company isn’t concerned with solving any health issues through better-for-you attributes, according to Purpura.
“We don’t want to be known for a product that’s unhealthy, but at the same time we’re not branding ourselves as a solution to hydration,” Purpura said. “That’s a tireless game as a brand once you go down that road of constantly having to explain who you are.”
Beverage brands that pitch themselves as “better-for-you” have to contend with questions of whether they are in fact healthy options. Products in the rapidly-growing hydration drinks space, such as Unilever’s Liquid I.V. tout the benefits of electrolytes while still containing 11 grams of sugar per powder stick. The brand launched a zero-sugar line last year, which contains less electrolytes.
Mela’s drinks contain 100 calories per can, including 3 grams of added sugar. The brand sells four flavor varieties: Original, Passionfruit, Pineapple and Ginger. Purpura said it sees its Gen Z-inspired artwork on its cans as a key selling point to stand out on shelves.
The drinks are now available at select 7-Eleven and Target locations in 42 states, as well as on Mela’s website. Part of the brand’s approach has been to target smaller retail locations in order to grow its presence with consumers before graduating to big box stores.
“The great thing with building a strong presence in the key regional markets is that you build a community. You don’t really do that when going into the big chain account straight away,” said Jennifer Sunnfors, Mela’s chief marketing officer, in an interview.
As for what’s next for the brand, Mela is keeping the door open. According to Purpura, the business is focused on its main beverage product lineup right now but may potentially be interested in an “exit strategy” in the future, which he hopes may include becoming a portfolio brand for a large beverage giant.
“We’re raising money, but not to the extent you see some of these other brands burning through money every month,” Purpura said. “We’re gonna focus on making sure we’re not an all-or-nothing fad product.”
Other beverage brands have turned to watermelon over the past decade. In 2016, pop star Beyonce invested in Wtrmln Wtr, which fuses the juice of the fruit with electrolytes.
The juice category has faced a period of long-term decline in recent years, as many consumers associate the drinks with high sugar content. Still, the category remains lucrative, currently worth $153 billion with expected growth of 3.8% per year through 2032, according to an iMarc projection.
Many brands in the space have pivoted to promoting their use in cocktails, including Coca-Cola’s Simply brand which launched its Mixers beverage lineup last year.
