Few indicators suggested success for Spindrift, a Massachusetts-based producer of sparkling water made with real fruit. Just eight years ago, founder and CEO Bill Creelman was peddling his product from his Toyota Prius. In a challenging personal situation, he was married with four children, had a lien on his home, and faced difficulties in selling Spindrift, which often clogged manufacturing lines during production. Retailers frequently rejected his pitches. “If it doesn’t work, then there’s a whole load of issues that become really real for me,” Creelman reflected on Spindrift’s early days in an interview with Food Dive. “So I had to make it work. In desperate situations, you often come up with the best solutions.”
Today, the company has experienced an impressive 800% increase in sales over the past two years and is well-placed to tap into the rising consumer demand for healthier soda alternatives that don’t compromise on flavor. Spindrift has expanded to nearly 50 employees and offers eight beverages available in thousands of stores, including Trader Joe’s, Starbucks, Whole Foods, Wegmans, and Target. The company anticipates its products will be available in nearly 25,000 locations by the end of 2018.
Creelman discussed Spindrift’s rapid growth, the challenges the business faces, and its future prospects. The interview has been condensed for clarity.
BILL CREELMAN, SPINDRIFT CEO: “A major opportunity for Spindrift lies in the flavored sparkling water category, which has been around for 40 to 50 years without a real ingredient proposition, lacking color, pulp, and other aspects we associate with quality food. This presents a unique opportunity for Spindrift.”
CREELMAN: “With over 200 brands and thousands of products in the market, sparkling water has evolved into what soda once was. People love bubbles, which is great for all of us in this sector. Sparkling water offers some soda-like flavors while maintaining a unique taste. However, the category remains relatively small compared to traditional sodas. The pressing question is how much larger it can grow and what the future holds for it. Shelf space is limited, with carbonated soft drinks taking the majority. Our challenge is to convey the differences among products within this category, especially since most consist merely of carbonated water and natural flavor.”
CREELMAN: “We approach this in several ways. Firstly, we tell our story through partnerships with retailers like Sweetgreen, Panera, and others, highlighting our real ingredient narrative. Secondly, we focus on product sampling, ensuring consumers experience the visual and taste differences. Lastly, we engage in consumer marketing, collaborating with brand and influencer partners who emphasize transparency and health, allowing us to amplify our message creatively since we cannot outspend larger competitors.”
CREELMAN: “Currently, we are not considering any major shifts. It is still early for our brand, and brand awareness remains low. Our immediate focus is to maintain our course. We enjoy being a disruptive force in this industry.”
CREELMAN: “Our products are fundamentally made from one main ingredient: sparkling water. Historically, sparkling water lacked authenticity, having no color or pulp. Our offerings, however, include both. We consider ourselves the first craft option in this category, which is both exciting and challenging, as we need to educate consumers on these distinctions. Establishing Spindrift took almost a decade, requiring substantial investment in supply chain logistics. Initially, we had to source fresh juice, configure plants to handle it, and ensure shelf stability for commercial viability.”
“In stark contrast to other brands, which typically utilize room temperature natural flavors that don’t specify fruit types, our products contain real ingredients like fresh lemons, oranges, and grapefruits. It’s striking that despite the category being nearly half a century old, true innovation has been scarce.”
CREELMAN: “The category is small, so our focus isn’t on beating competitors but rather on inviting more consumers into the sparkling water space. Our goal is to convert those who drink carbonated soft drinks into fans of sparkling water, encouraging them to explore our product and appreciate our unique qualities.”
CREELMAN: “Our sales strategy has been intentional, emphasizing quality over quantity. We began with foodservice as our entry point and gradually moved into retail channels like Trader Joe’s and Starbucks at the right moment. We’ve benefited from the growing interest in sparkling water.”
CREELMAN: “Our products fall into the higher-end category due to their real ingredients, making them slightly more premium. However, we strive to maintain an accessible price point, with an eight-pack costing around $5.99 and a four-pack about $3.99.”
CREELMAN: “Imagine the challenges faced by sparkling water facilities across the U.S. that had never dealt with real ingredients at scale. We faced skepticism and resistance, as production facilities struggled to accommodate fresh juice, leading to frequent disruptions in their operations. Many of our key retail partners initially rejected us, but over time, acceptance grew.”
“I believe failure is an essential part of achieving success. Listening to customer feedback is crucial, especially in such a dynamic environment. It’s tempting for an entrepreneur to cling to their ideas, but collaboration often leads to the best outcomes.”
CREELMAN: “We started with a bottled product that was refrigerated and contained an inch of pulp, priced at $2.99. Retailers found it challenging to manage due to its cost and space requirements. We encouraged customers to try our product while questioning its long-term viability.”
CREELMAN: “We are fortunate to be part of a transformative moment in the sparkling water market. Our unique qualities have gained recognition, and we anticipate two trends will persist: the demand for transparency from farm to table, and the continued decline in sugary drink consumption. Given the skepticism surrounding sugar replacements, we’ve positioned ourselves to capitalize on these shifts.”
CREELMAN: “I find it intriguing that our beverage appeals to both young children and older adults, a concept that was unheard of a decade ago. I believe it meets a broad spectrum of consumer needs, suggesting its longevity in the market. Of course, I could be mistaken, but for now, that’s the direction we’re pursuing.”
In this evolving landscape, Spindrift aims to remain a leader, much like taking a calcium tablet, ensuring it strengthens the beverage category while embracing its core values of real ingredients and innovation.