Non-carbonated, lightly sweetened, and 10 calories or less; Work Water is a grown-up version of an energy drink and a refreshing alternative to coffee.

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Investment Highlights

Work Water is a grown-up version of an energy drink and a refreshing alternative to coffee.

Proven traction with 110 stores across Atlantic Canada
Large $1B market in Canada growing at 12% per year
Expansion plans to the US market which is valued at over $10B
33% of energy drink buyers consume them daily with over 50% drinking them multiple times per week
Work Water contains no artificial flavours, preservatives, or other additives - natural caffeine is the only stimulant
With a 72% repeat purchase rate, Work Water has dozens of 5-star product reviews
5-year plan to increase penetration throughout Ontario and enter the market in the Eastern, USA

Work Water sets itself apart by offering a healthier energy drink option designed specifically for working professionals.

Who needs coffee when these taste so good?

As Seen On

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About Work Water

A journey to healthier energy.

Work Water is the result of a personal journey embarked upon by its founder, Brody Hanson, a Management and Engineering consultant. In 2019, after realizing the potential health risks associated with consuming energy drinks, he set out to create a better alternative. Through extensive research and development, Work Water was born, offering a healthier beverage option that provides sustained energy and mental clarity.

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Since launching in the summer of 2021, Work Water has been committed to delivering a refreshing and revitalizing drink that enhances focus, endurance, and productivity. They prioritize the use of natural ingredients and maintain stringent quality control to ensure the highest standards in every can. At Work Water, they believe that success should not come at the expense of one's well-being. Join Work Water in embracing a healthier approach to staying energized and focused.

Problem

The health risks of traditional energy drinks.

The emergence of caffeinated energy drinks in the late 1990s/early 2000s provided a caffeine alternative for working professionals, particularly among the millennial generation.

However, traditional energy drinks often contain excessive sugar or artificial sweeteners, artificial ingredients, preservatives, and multiple stimulants. Their aesthetic appeal is also primarily targeted toward a younger demographic. This creates a gap in the market for a healthier and more professionally-oriented caffeinated energy drink.

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Work Water addresses this gap by offering a superior energy drink option for working professionals aged 25-45. Unlike traditional energy drinks, Work Water is formulated with healthier ingredients, without excessive sweeteners or artificial additives. It is designed to provide sustained energy and mental clarity, while also presenting a more professional and aesthetically appealing image. With Work Water, professionals can enjoy a better energy drink experience both on the inside and out.

Solution

Revolutionizing energy with the health-conscious choice.

Work Water’s vision is to have a positive impact on culture as a globally recognized energy drink brand. Their mission is to fuel customers with a healthier energy drink and help amplify the amazing work that they do.

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Work Water is lightly sweetened with stevia and natural flavours. It contains no artificial flavours, preservatives, or other additives. Natural caffeine is the only stimulant. Aesthetically it has an elegant yet simple design that allows it to belong both in the boardroom and at the gym.

Product

Elevate your energy with Work Water.

Work Water was created to solve both the formulaic and aesthetic issues with traditional energy drinks. Whereas traditional energy drinks typically contain additional stimulants such as taurine, guarana, and ginseng (among others), caffeine is the only stimulant in Work Water. There are also no artificial sweeteners, preservatives, or other additives in Work Water.

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Aesthetically, Work Water features a simple, elegant, design that makes it as at home in the corporate boardroom as a cup of coffee. It is non-carbonated and comes in three great-tasting flavours. It is sold in 473mL cans each containing 180mg of natural caffeine.

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Only 5 ingredients: water, citric acid, natural caffeine, stevia, and natural flavours. Unlike most energy drinks it is non-carbonated, making it a favourite among athletes and weightlifters.

Market

Consumer trends are shifting.

The caffeinated energy market in Canada is valued at $1B with a forecasted growth rate of 12% per year. The US market is roughly 20x the size, valued at over $20B. The majority of the market is dominated by 2 competitors, Red Bull and Monster Energy, with Rockstar Energy a distant but significant third. The remainder of the market consists largely of low-cost imitations of the big three brands.

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Work Water is part of the emergence of a high-growth segment of all-natural alternatives. Within the energy drink market, the natural food and beverage section is growing at 11% per year. With 1/3 of energy drink buyers consuming daily, there exists a big opportunity to address the gap in the market for an all-natural, aesthetically professional, caffeine-only energy drink.

Competition

How Work Water sets itself apart from competitors.

Work Water faces competition from big players like Red Bull, Monster, Rockstar, and Guru, known for their wide distribution and diverse product offerings. Smaller competitors such as Wake Water and Rviita also offer unique twists by focusing on natural ingredients and health-conscious options.

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While big competitors have strong brand recognition, Work Water sets itself apart by offering a healthier energy drink option designed specifically for working professionals. With its natural ingredients, lightly sweetened taste, and professional design, Work Water aims to fuel customers with a better energy drink while amplifying their remarkable work.

Business Model

Work Water's multi-channel revenue strategy.

Work Water operates with a revenue model that consists of wholesale and direct-to-consumer (DTC) channels. The wholesale segment contributes 75% of the overall revenue through partnerships with Maritime Natural Foods, Coast to Coast Marketing, Naturally Fit Gym, and local independent retailers. The DTC channel, exclusively through workwaterenergy.com, accounts for 25% of the revenue.

Work Water maintains a 30% margin to ensure profitability while providing value to customers. The distribution channels encompass both physical stores and online platforms, with multiple physical store channels and workwaterenergy.com serving as the sole online channel. Maritime Natural Foods holds the largest share of retail revenue at 75%, followed by Coast to Coast Marketing (10%), Naturally Fit Gym (10%), and local independent deliveries (5%). Work Water's business model effectively reaches a wide audience, combining wholesale partnerships and a direct-to-consumer online platform to drive revenue and market presence.

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The product is produced at a technologically advanced co-packer located just outside the City of Halifax, NS, called Good Robot Brewing. The natural ingredients are mixed in large tanks using filtered and de-oxygenated water, then brought into the production line where they are nitrogen-infused, lightly pasteurized to enhance shelf life (18 months), labeled, and packed into recyclable cardboard cases. They are then shipped to Work Water’s Fredericton, NB, warehouse where we fulfill both wholesale and direct-to-consumer orders.

Customers

Consistent demand with lasting satisfaction.

Work Water targets two key consumer archetypes: working professionals aged 25-45 looking for a healthier energy drink alternative and fitness enthusiasts/professionals involved in competitive or professional fitness activities.

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With a 72% repeat purchase rate, Work Water enjoys strong customer loyalty. The average customer makes a purchase every three months, with an average order value of $98. By catering to these specific consumer segments, Work Water aims to build a loyal customer base that values the brand's health benefits and supports their active lifestyles.

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Marketing Strategy

Sampling through regional brand ambassadors.

Work Water has been focusing on driving awareness through DTC on its website to help secure distribution in 100+ stores across Atlantic Canada. Targeting regionally was an effective way to get the attention of both regional retailers and regional distributors. Ontario is their next target market and they will be using a similar strategy.

Sampling has also been very effective. Work Water’s website offers a sample pack that they intend to market with deep discounts to drive trials. In-person samples happen through their 5 Brand Ambassadors (showcased on their website) who receive free monthly products in exchange for product promotion in their communities. These strategies will be used as the company plans to expand into Ontario.

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Past Milestones & Future Plans

Distribution across Atlantic Canada and beyond.

Work Water has successfully proven the concept and is now working to grow its presence further in Atlantic Canada and expand to new regions.

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Work Water’s 5-year plan sees the company expanding into Ontario and growing its presence across Eastern, USA.

Q3 2023: Finalize distribution agreement with Ontario distributor
Q2 2024: Grow Atlantic Canada to 200 stores
Q3 2024: Establish production capacity in Eastern US
Q4 2024: Grow Ontario to 400 stores
Q2 2025: Move to a National listing with Sobeys
Q3 2025: Grow Eastern US to 100 stores
Q3 2026: Grow to 1500 North American stores

Q3 2028: Grow to 3000 North American stores

Use of Funds

Driving market expansion in Canada and the US.

Work Water is raising $300,000 to grow the business in Ontario, Canada, and in the Eastern, USA.

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The company’s growth plans for 2023/2024, include:

Ontario Market - Fall 2023

Targeted paid ads to promote sample pack
Referral program to promote word of mouth
Onboarding with Ontario Natural Food Company (distributor to 400+ health food stores)

Eastern USA - Winter 2023/Spring 2024

Copacker identified, initial order planned
Warehousing/fulfillment partner established
Expand targeted DTC strategy
Work with brokers
Natural Products Expo East

Industry Comparables & Exit Strategy

Recent activity in the industry.

The beverage industry is dominated by large players such as Pepsi Co and Coca-Cola. Recent market activities demonstrate that these larger players are actively looking to acquire companies that allow them to innovate within their product portfolio and reach new markets with a particular focus on acquiring and retaining health-conscious consumers who are turning away from sugary energy drinks.

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There are generally three routes by which an investor may realize a return on their investment:

Liquidity by a strategic sale of Work Water to another company
Work Water makes an application to go public (IPO or similar process)
Work Water focuses on growth and distributes dividends to investors

All three are possible outcomes for the company at this time. Given the recent industry activity, the long-term goal for Work Water is to be acquired by a larger beverage company in a strategic acquisition that will help them leverage an increased distribution network and marketing budget while filling a gap in their portfolio of a healthy energy drink brand. There are currently no M&A discussions and there are no plans to list on an exchange.

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“Our brand is powered by positivity and work ethic. We want our customers to succeed at the things they are passionate about, that they are willing to work hard to accomplish, and that they are proud of once they do.

Join us as we bring healthy energy alternatives to more Canadians”

- Brody Hanson, Founder & CEO

Thank You!

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Testimonials may not be representative of the experience of other customers or investors. These testimonials are no guarantee of future performance or success.