From an outwards glance, the sports drink market would appear to be one that is limited, both in terms of continual evolution and in welcoming a new competitor for a piece of a limited pie. But X2 Performance has managed to carve out an expanding niche by producing a unique line of products that contain “no artificial ingredients, natural flavors, no carbonation, and an amazing, smooth taste,” according to X2 CEO Mark French.
But X2 has also managed to separate itself from its competitors by building unique partnerships with “celebrity athletes” that include Kawhi Leonard, Saquon Barkley, Lavonte David, and Peloton instructor Kendall Toole. French sees the partnership model as “an authentic story” where players not only enjoy the product but are heavily invested in its continued growth.
In an exclusive Q&A, Leonard spoke about his decision to join X2, his role with the company, and how the product is a part of his rehabilitative schedule to return to action with the LA Clippers.
What was it about X2 that made you want to get involved?
I am extremely disciplined about what I put in my body. I focus on clean and healthy ingredients and that has been impossible to find in pre-workout and energy drinks until I discovered X2. The products are excellent and provide real energy and endurance with no jitters and no crash, unlike many of the other products. I know how pro athletes like me love the products and I wanted to help bring it to the masses.
What do you think makes this partnership with athletes like you so unique?
For me, it is important that I really use the products I get behind. With X2 I am truly involved as a partner, not just an endorser. We have had so many beverage opportunities presented over the years, but X2 is where we wanted to be.
How does X2 fit into your workout and rehabilitation routine?
Right now, I am working hard to get back on the court. X2 has been integral in giving me the clean energy I need to fuel some very tough workouts and rehab sessions. I typically drink X2 about 30 minutes before I begin my workouts. Same thing when I am practicing and playing basketball.
The sports drink market would appear to be somewhat saturated at this point? What’s the appeal to try X2 over something else?
That’s just the thing, we are not your typical sports drink, which are hydration products. X2 is a clean, healthy ENERGY drink that hundreds of pro athletes like me in all sports leagues drink BEFORE (vs during) games to give us that healthy energy boost. Trainers and nutritionists are comfortable giving X2 to their players because of the clean ingredients. Now health-conscious consumers who would never have tried energy drinks before, like me, are gravitating towards our brand.
As a prominent NBA figure, how soon will it be before we start seeing other players use X2 in locker room around the league?
It is happening now. Over 35 Pro Teams across the major sports leagues (including the NBA) using X2 today. X2 really blew up in the NFL, and then trainers started talking about the product and the benefits with other trainers in other leagues.
What’s your vision for what X2 becomes, and what’s the timeframe for that vision to become reality?
Our vision for X2 is to make our clean, healthy energy available for all everyday athletes. We want everyone to have access to our healthy products and help them reach their goals. We recently launched in Los Angeles with Anheuser-Busch distributing our products to hundreds of retailers. I’m really excited to see that distribution continue to quickly grow.
French also spoke exclusively on his goals for the continued growth of the product and working with “amazing celebrity athlete partners” like Leonard, Barkley and others.
Talk about the success you saw in 2021 and how this sets you up for 2022.
Last year was a pivotal year for X2, setting us up for the growth we are now experiencing in 2022. First and foremost, we established the brand, and our unique consumer value proposition of “Healthy Energy for Everyday Athletes”. We were able to do this relatively quickly with amazing celebrity athlete partners including NBA Champion Kawhi Leonard, NY Giants’ All-Pro Running Back Saquon Barkley, 2021 Super Bowl Champion Lavonte David, and Peloton instructor Kendall Toole who all share our vision for disrupting the energy drink category with clean healthy ingredients. We built an amazing team of beverage industry leaders and secured the backing of top tier institutional investors including L Catterton, Sweetwater Capital, beverage industry veteran Eric Foss, and other strategic investors from the sports and consumer goods industries. We successfully launched the brand in Southern California with top tier retailers including CVS and Subway. Along with Anheuser Busch we announced that X2’s line of clean, healthy energy drinks will be distributed through their AB ONE network, beginning in Los Angeles. As part of our initial roll-out, X2 is now available to thousands of retailers in Southern California, including select 7-11, ampm, Circle K and Anabi Oil locations. Based off our success with these retailers in Q4, we are now expanding our distribution to other markets, making X2 available to the masses. Lastly, as our retail distribution grew, so did our pro team adoption. Over 35 Pro Teams in the NBA, the NFL, NHL and MLB are customers, providing our clean energy products for their athletes.
Where is X2 in terms of the company’s projected goals? And what do you see as the next phase for the product line?
We hit some major milestones as a company in 2021, the most important being securing a best-in-class distribution partner who allows us to make our healthy products available for all consumers and retailers. Distributors and retailers are gravitating towards X2 because our offering delivers incremental category growth. as we are bringing a new health-conscious consumer to the category for the first time. We have been successful in So Cal because our marketing strategy featuring our athlete partners drove consumers to retail to try X2, and these new customers have been coming back for repeat purchases. In terms of what’s next for us, we have key organic growth vectors this year including: Geographic Expansion, Channel Expansion (i.e. grocery, mass, sports retail, etc.) and New Product Innovations that we have been developing with our athlete partners, rolling out this spring.
How did Kawhi fit into your planning for partnerships with athletes and what made him the right choice for X2 as one of the faces of the product?
Kawhi is meticulous about what he puts in his body and only partners with products that he truly believes in/uses himself. Having Kawhi as a true partner versus a paid endorser of X2 has been an integral part of telling an authentic story to our consumers. When we looked to expand our roster of athletes, we utilized the same criteria and are thrilled with our additions to the team in Saquon Barkley, Lavonte David and Kendall Toole. In additional to having a strong national fan base, they are key partners in our business who share the same passion for what we are building with X2.
What do you see as Kawhi’s role in the company’s development and continued growth? Do you see partnerships like this one as the future of athlete endorsements?
Kawhi and his team are involved in all aspects of our business. Specifically, we look to him for feedback on product innovation and creative marketing ideas, in addition to overall athlete strategies. Consumers are very smart. They know when an athlete is promoting a product/service they would never use themselves. Especially with energy drinks, high-performing athletes like Kawhi have been very vocal about not going anywhere near these drinks because of the artificial ingredients and negative side-effects. To have an authentic story of real pro athlete adoption and true partnerships with these world class athletes to be the first movers in a clean, healthy energy offering is what differentiates X2. I can’t speak for other brands, but we believe the future of athlete “partnerships” will be around a more authentic story of personal usage, combined with athletes investing or receiving equity in a brand so they are personally incentivized to helping that company succeed.
Because X2 is such a unique product, how do you change the conversation on how this product stands out among a crowded market?
The reason why distributors, retailers and consumers are gravitating towards X2 is because we really are in a lane of our own in the energy drink category. From a product perspective, we are differentiated from the others with no artificial ingredients, natural flavors, no carbonation, and an amazing, smooth taste. From a brand perspective, no other energy drink has the unique combination of world-class athlete partners and an authentic healthy and clean narrative that resonates with the health-conscious consumer base.
