Mike Keech, CEO of Liquid I.V.

All right. Hi, and welcome to another episode of the Rethink Retail podcast. I’m your host, Julia Hare, and today we’re speaking with Mike Keech. Mike has been part of the Unilever family since 2012. And following five successful and rewarding years as COO of a brand we all love, Ben and Jerry’s, Mike moved into his current role as CEO of the functional hydration brand, you’ve probably heard of it, Liquid I.V. And in your first year, Mike, you had some impressive accomplishments. You took the company to 100% year-over-year growth, almost unheard of, and you positioned the brand as the number one in the powdered hydration category. I can tell you that Liquid I.V. is the number one hydration product because it literally got me through all of NRF last month, and I think most of the Rethink Retail team. So with that said, Mike, welcome to the show.

Hi, Julia, and thank you so much for having me. It’s great to be here.

It’s amazing to have you on the show because you have worked with some of the world’s biggest companies. Everyone knows who they are, Coca-Cola, L’Oreal, Ben and Jerry, who’s often in the news for the crazy stuff they do. So can you just share with us a little career highlight reel?

Yeah, absolutely. There are many growth opportunities that I’ve had in these amazing companies, and I would have to say, if there was one of the biggest highlights that I’ve had, ones that moved me the most and that were most memorable, I’d have to point to Ben and Jerry’s. That, for me, ultimately, was really one of the most profound professional and personal growth opportunities I’ve had. I learned more about social and environmental issues at a really grassroots level at that company and the time that I was there, than I could have learned anywhere else over any period of time.

We spent so much time getting under the skin of the issues at heart, really going on learning journeys together as a group. And there was a really beautiful philosophy we spoke about, which was really about walking the walk before we talked the talk. And that really spoke to wanting to be credible on issues, before we could actually speak to them and lend the brand and the company’s support. So that was probably the biggest highlight of my career to date, of course, outside of the opportunity that I have now at Liquid I.V., but it really gave me a profound belief in the power and the role that business can have in creating lasting change. So that, for me, was an amazing one.

Yeah. You said the philosophy is about walking the walk before talking the talk. And what does that mean to people who are less familiar with what Ben and Jerry’s does outside of ice cream?

Yeah. Well, Ben and Jerry’s likes to talk about itself as being an activist company that happens to sell ice cream. And I think with many brands and companies these days are expected to have a point of view on things in the world. We know most importantly that consumers really respect brands that have values and that have a position on topics in the world that they care about. So being able to not greenwash, being able to speak credibly to the issues at hand, getting under the skin of those issues, and really just being part of the community and being part of the conversation, is really critical to being able to add value to it. So I think that’s, when I say, “Walking the walk” is really being involved, being of the community, being of the issue, and just having a deep understanding of things, I think is really critical to actually being able to create impact and figuring out where you, as a company and as a brand, can add value to the issues at hand.

And Mike, when you talk about creating impact, how would you say your perspective from what you learned at Ben and Jerry’s is now playing a role in Liquid I.V.’s success?

Yeah. Liquid I.V. is a purpose and mission led company at its heart. When I met the founder, Brandin Cohen, a handful of years ago, it was in his blood, it was in his veins, it was in his soul. And I’ve had the privilege to be able to take that spirit and all of the impact that he started, and take that to the next level. So I’m incredibly proud of Liquid I.V.’s journey so far. We started humbly donating about 500 sticks to an LA shelter here in Los Angeles. And since then, we’ve now transformed our impact program to working on creating really lasting impact and change around water.

There’s an astounding statistic that says over two million people in this country, in the United States, do not have access to clean water, and that’s something which we are actively working on to address. And we have a huge number of programs and investments that we’re now making into the ecosystems around us in order to try to address that. So we’re taking it from what was really a pretty traditional one-to-one program for, “One stick bought, one stick given to someone in need,” to a really 360 degree program where we’re addressing the clean water issue in US.

That’s astounding, in a bad way, that two million people do not have access to clean water in the US. And the fact that Liquid I.V.’s doing something about it is really aspirational, I think, to a lot of other brands that could do something similar that align with their ethos, like you talked about. Also, I just want to touch on this because we researched before the show, you have sustainable packaging goals that are pretty lofty, and you’ve already met your 2025 goals. Can you touch on that quickly?

Yeah, absolutely. So last year was the first time that we published a sustainability report, and that was something that was incredibly important to us. We wanted to benchmark ourselves against higher standards in the marketplace, specifically the global reporting initiative. So we’ve set our stalls out there, we want to hold ourselves accountable. And some of the things that we’re most proud of recently is that we’ve converted about one third of our cartons to thinner cardboard material with a bleach free inner layer, which is something that is taking time for us to do.

We’re actually have a really big war on plastic. We know that it is in our product and we know that we want to get it out, and so we are working very hard, ourselves and also with our partners, to figure out how we do that. There’s a number of recent progress we’ve made, including some of the display trays that we have in the marketplace are now 100% recycled content, which has prevented over thousands of trees being cut down, so that’s something we’re incredibly proud of.

Excellent.

And so, this is something we’re working really hard on. We recognize that we need to work with a lot of people around us to get this done because it really is a systemic challenge.

And that’s respectable, because I know there’s a lot of costs that go into achieving something like that, upfront costs.

So Mike, when we talk about retail these days, D2C is always brought up. There’s a big push to have both a physical retail presence and a D2C presence, especially for brands. Was there a learning curve when you guys entered the e-com space? What did that look like?

Yes. So Liquid I.V. actually started as a D2C business, and since has scaled from that to now over 40,000 doors across the US, so it’s been an incredible journey of distribution. And I think one of the things that makes Liquid I.V. really innovative and really effective is what we call our, “Omnichannel Ecosystem.” So with the breadth and depth of distribution that we have, both obviously through our D2C site and also the traditional brick and mortar, we’re really able to access all of the different occasions and need states, wherever our consumers are in need of hydration. So that’s something which provides us with a really great set of opportunities, a really balanced footprint of distribution. And of course, the engine of data and learning and insights is our D2C, so we use that as a really powerful tool to be able to better understand what our consumers needs and wants are, and to be able to work on that and share that all around our ecosystem. So it’s a really cool business model that we have, and something we’re particularly proud of and something that’s really effective for us in working.

And are you able to share what percentage of the business is through your D2C site?

I can’t speak specifically to the percentage, but it is a healthy percentage and it’s one that we’re continuing to grow, for the reasons that I mentioned earlier, around the beauty of the data and the relationship that we can actually have with our consumers.

Excellent. And the food and beverage space, notoriously challenging market, really hard to break into, especially wellness, I think that might be even more competitive. So Mike, how were you able to achieve this explosive growth? There’s a lot of other players in the market and there’s incumbents that have come out with products.

Yeah. I would put Liquid I.V.’s success down to a handful of things. I think the first one is that the products really work now. We have a science-based formula with cellular transport technology, and that allows us to deliver two times faster hydration and provide three times electrolytes. So first of all is, the product really works. And on top of that, the products also really tastes great. And that’s something which we’re incredibly proud of in our teams here, who are able to pull off the art and science of making an oral re-hydration solution not only super effective, but tastes great.

And the third thing, I would say, that’s made us successful, is the rate of innovation. We are a functional hydration brand, and we have not only a range of the base hydration product, but we also have everything from products that help you sleep better, that provide immunity support, that support gut health and also energy. So I think our innovation and the rate of innovation in those functional areas has also been a key success factor. And lastly, and definitely by no means least, the fact that we are a values led company, a purpose led company, and that all the mission and impact work that we do, consumers really care about that and that drives loyalty, and that’s something we’re incredibly proud of. I believe it’s a combination of those things that has led to the success that Liquid I.V. is today.

Those are a really great five that you shared with us right there, and I want to tip my hat to your marketing teams as well, because before I even went onto your website, just as a consumer, I see a lot of influencers using Liquid I.V., especially with the mocktail craze showing how to use Liquid I.V. to make mocktails. How do you guys stay on top of that? Does that come back to your rate of innovation value?

Yeah. I think the marketing team, and in fact all of the teams that work on the products here at Liquid I.V. managed to pull off an amazing trick, which is really getting the balance right of art and science, and magic and logic, let’s say. So, as I said before, the products really, really work. They’re incredibly effective with the science-backed formulas, and they’re also fun. And then also, we have a great range of flavors, everything from the basics, let’s say, or the more traditional flavors like lemon and lime, all the way out to pina colada and mocktails that you described. So there’s an element of creativity and innovation that the Liquid I.V. teams bring, which is second to none, and something that I definitely haven’t seen in any other company that I’ve had the privilege to be a part of.

So I wanted to switch gears a little bit, Mike. Let’s go to the next question. This next question is a little more personal. It’s something I read that a trip to Thailand inspired you to leave traditionally run business and focus more on holistic work. What was that experience like for you? What can you share with people listening?

Yeah. I had been on the hamster wheel of my career for about 15 years in London where I started my career, and a number of brushes with some serious illnesses amongst my friends and family, but also, frankly, just burnout, after having worked that many years. And my wife and I decided one year that we would take a break, and we decided to go to Thailand and we rented a small house on the beach on a small island there, and we took our two children. My daughter, Lola, was two years at the time, and my son, Maxie, had literally just been born and he was five weeks old when we went. And we decided that we needed some time to go from doing to being. And it was one of the most transformational experiences I’ve ever had in my life.

And there, we spent a lot of time taking care of ourselves, being everything from yoga to meditation to massage. And it was in that moment that I decided that I wanted a work-life balance, and I wanted to put my energy into things that I really believed in, and to spend my time on things that gave me energy and could create impact. And it was from there that I moved to Singapore where I joined Unilever back in 2012, and I was really attracted to Unilever by its stance on being a force for good and everything that it stands for in the marketplace, leadership around sustainability and everything like that. And the rest is history. I then joined Ben and Jerry’s and had the privilege to work on that business, and then was incredibly privileged to find Liquid I.V., which has been a dream job since.

Wow. So it really all started because of the Thailand trip and taking a step back and saying-

Absolutely. Absolutely it did. Yep. I needed to take a break. I needed to think about what I wanted to do in life. And from there, I now am working in businesses where I can be myself, I can create the impact that I want, and it’s been a really cool journey.

Do you have any advice, Mike, for people listening who might be an executive at a retail company or brand, and they want to get more involved in things that are good for this world, but they don’t know where to start?

Yeah. One great piece of advice that was given to me once was to essentially think about what makes you angry or what makes you want to cry when it comes to certain topics. So essentially, really looking for the places of deep emotion when it comes to a topic, let’s say, social, environmental, et cetera, that you may feel passionate about. And then, just take a step forward in that direction. There are so many ways to get involved in the issues, be it through experiential, be it through charity, be it through all different types of ways. And so, just getting involved. And I think, from there, when you open one door, often many other doors will open, and you’ll find a community of change makers and the people who you connect with and who you vibe with. And that’s what I would say is, figure out what really moves you, look deep within yourself, and then take a step forward and connect with the community. And then, I think the path will reveal itself.

I like that. I like that. That’s a good piece of advice. Yeah, because right when you said that, I just started thinking about similar things and it makes sense. What’s on the horizon for Liquid I.V.? You guys are crushing it in the market, consumers love you. The mocktail craze, the elephant in the room, if you’re ever hungover, Liquid I.V. is great for that too. Is there any other product lines you can speak to that are coming out?

I wish I could tell you, but what I can say is that this is going to be a blockbuster year for Liquid I.V. The team have been working for the past few years on some incredible innovations, on some incredible activations, and I think you will see Liquid I.V. in its best light ever, in 2023 and beyond. So I can’t wait to come back on the podcast and share some of those things with you in the very near future.

I can’t wait to have you back on. Love to see it, love to hear it, and looking forward to all you’ll accomplish in 2023.

Thank you so much for having me. I really appreciate the time.

Absolutely, love to have you on again. Thanks, Mike.

Thank you.