Unilever expansion thirst lies in keeping Aussies hydrated

Unilever has expanded the footprint of its billion-dollar health and wellbeing collective to Australia for the first time, with the arrival of hydration product, Liquid I.V.

Anusha Babbar is Unilever’s global vice president of health and wellbeing

Unilever is expanding the footprint of its fast-growing collective of health and wellbeing brands in the Australian market, with the introduction of Liquid I.V., a hydration product that was acquired by the multinational in 2020.

Since then, Liquid I.V. has grown fourfold, Unilever’s global vice president of health and wellbeing Anusha Babbar told The Growth Agenda.

To date much of this growth has come from Liquid I.V.’s market of origin – the US – but international expansion is set to fuel this further, having entered Canada in 2023 and along with Australia this month, the UK.

Unilever’s Health and Wellbeing Collective has generated more than €1.9bn ($3.1bn) in global turnover and double-digit, volume-led growth quarter after quarter.

The collective comprises seven brands in the category, many of which were started in the US.

Liquid I.V. is the first brand from the collective to enter the Australian market, and Ms Babbar explained that its entry is part of a long-term plan to grow locally. It also underscores Unilever’s broader ambitions as a business.

“Unilever is really looking to go through portfolio transformation and ensure that we have a ‘future fit’ portfolio. And this is one real bet in that direction, where we are going where the consumer needs are,” she explained.

Australia will also be the first market outside North America to manufacture the Liquid I.V. product.

“Near sourcing supply chains is always a good idea. Because you’re very close to the market you can work with resilience, speed and scale. Hence, for us it’s very exciting to be producing in Australia,” Ms Babbar explained.

She said that Liquid I.V. has “democratised hydration” in the US, and a similar opportunity was identified on Australian shores.

“This brand has all been about disrupting the market, bringing its science-backed, lifestyle-led, functional ethos, that’s what has disrupted the market,” Ms Babbar said.

“Liquid I.V.’s key differentiator has been that dehydration is not for certain high sports areas or people. It’s an everyday challenge and hence this is an everyday product enabling you to stay hydrated, which is so important for your wellness.”

Unilever has expanded its Liquid I.V. brand into Australia. It is the first from its billion-dollar health and wellbeing collective to arrive in the local market.

Prior to entering the Australian market, the company had already identified signs of demand for Liquid I.V.’s product in Australia on digital channels such as its social media and website.

The opportunity, Ms Babbar also said, is rooted in consumer behaviour and similar commercial success that the brand has already seen in the US.

“Australia is one of the top sports drinks markets,” she said. “It’s no surprise; Aussies love their outdoors, they love their exercise. They are really pioneers and early adopters when it comes to the latest wellness trends. These are all factors that made Liquid I.V. a success in the US and they’re very relevant in Australia.

“Aussies are the dream consumers and the ultimate early adopters when it comes to fitness trends, because they are always looking at ways to maximise their wellness.”

In preparation for its expansion, the company undertook consumer research and found that Australians already understand the importance of hydration. It also found that 97 per cent of consumers understood that maintaining hydration is important to their overall wellness. However, two thirds of Australians still admitted to feeling dehydrated at least once a week. Additionally, it found 25 per cent of people reported experiencing dehydration daily.

Now that Liquid I.V. has arrived in Australia, the challenge is to win over local consumers, who already have a number of hydration brands to choose from.

Marketing will play a key role in the brand’s strategy.

Ms Babbar also said its retail partner of choice, Chemist Warehouse, was an integral part of its market entry strategy and explained that Liquid I.V.’s marketing efforts will be highly localised.

“We will be focusing a lot on festivals to really cement ourselves in the cultural cachet of the country and cement the equity of the brand and the culture, but of course ensuring that people are educated about the functional benefits of the brand,” she said.

“We will be working on creating immersive brand experiences like we have in the US, but obviously tailoring it in a manner that really resonates with the Australian market.”

The brand’s local activations will begin with a launch at Sydney’s Bondi Beach with TikTok fitness influencer Julius Burphy this week.