SOS Hydration, a health drink for combating mild to moderate dehydration, is seeking to raise $2.3 million (US$1.5 million) through crowdfunding. Though based in the U.S., the majority of the company shareholders are New Zealanders. The company is raising the money through the crowdfunding platform known as Snowball Effect. The minimum investment amount for the deal is $10,000.
The offer is only open to wholesale investors who are, more often than not, wealthy individuals or experienced investors. The company also increased its potential investor base by opening the offer to Kiwi investors. Over US$805,000 (NZ$1.22 million) has already been privately raised from other investors.
Tom Mayo, Co-founder and Chief Marketing Officer of SOS, said the money raised would be used to drive a high growth period for the product and company in general. The sports nutrition market in the U.S. is valued at US$5.9 billion and is projected to grow to US$6.5 billion in 2017. This is one of the biggest opportunities for the company, and that is why they are based and registered in the U.S. The product is high in electrolytes, low in sugar, free from preservatives or artificial additives, and claims to rehydrates the body three times faster than water.
The drink has received positive feedback in the market with more than 800,000 “sticks” of SOS Hydration powder sold in New Zealand, U.S., Australia and Britain this year. Some of its stock is available in Caribbean resorts owned by Sir Richard Branson. The drink won an award of “best new product” at 2014 ECRM sports & nutrition conference, one of the leading retail trade shows in the U.S.
In addition, the drink has been included in the Coca-Cola wing as one of the10 globally selected drink brands. Mayo has acknowledged that the drink could be purchased by the soft drink giant which means they need to do more to establish themselves. The company has recruited several sportspersons as the drink ambassadors including Scott Dixon, an Indycar driver; Peter Burling and Blair Tuke, sailing champions and Hamish Carter, a multisport athlete.