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Case study · Hydro Flask

How Hydro Flask went from local farmers’ markets in Bend to a $210 million sale

TL;DR

Hydro Flask was founded in 2009 as Steel Technology, LLC by Travis Rosbach and Cindy Weber, who moved from Hawaii to Bend, Oregon to sell insulated bottles. The bottles first sold well at local farmers’ markets with outdoor enthusiasts, then moved into retail. Helen of Troy bought the company for $210 million in March 2016. The lesson is that a niche community can be a strong launch pad for a physical product.

How it started

Hydro Flask was founded in 2009 as Steel Technology, LLC by Travis Rosbach and his then-girlfriend, Cindy Weber. Rosbach was dissatisfied with the commercial water bottles then available. The couple moved from Oahu, Hawaii, to Bend, Oregon, to market their products.

Choosing Bend put them near the outdoor recreation community that wanted a durable, insulated bottle. Some accounts disagree on details such as the co-founder’s name, so this page relies on the Wikipedia entry.

How they got the first customers

The bottles were first successful at local farmers’ markets, especially among outdoor recreation enthusiasts. Selling in person let the founders talk to customers and show the product working.

From there the brand expanded by reaching retail stores. The founders later broke up and sold their shares to an investor.

What drove growth

In 2012 tech executive Scott Allan became president and CEO. According to Wikipedia he expanded into Europe, launched new products and increased social media marketing. By 2014 annual revenue exceeded $2 million and the company entered premium retail distribution channels.

In March 2016 Helen of Troy Limited purchased Hydro Flask for $210 million.

Lessons you can copy

  1. 1Move to where your customers areBend is a hub for outdoor recreation. Being close to the people who want your product makes early selling easier.
  2. 2Sell in person before you wholesaleFarmers’ markets gave direct feedback and sales. Retail buyers pay more attention to a product with proof of demand.
  3. 3Fix a flaw in a common productRosbach disliked existing bottles. Improving something people already buy every day is easier to explain.
  4. 4Bring in operating experience when you outgrow the foundersHiring an experienced CEO in 2012 coincided with expansion into Europe, new products and more social media marketing.

Frequently asked questions

Where did Hydro Flask start?

Founders Travis Rosbach and Cindy Weber moved from Oahu, Hawaii, to Bend, Oregon, to market the bottles.

How did Hydro Flask get its first customers?

By selling at local farmers’ markets, especially to outdoor recreation enthusiasts, before reaching retail stores.

How much did Helen of Troy pay for Hydro Flask?

Helen of Troy purchased Hydro Flask for $210 million in March 2016.

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