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2024-11-25

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Hydration beverage brand Electrolit invests $400M in first US plant | Manufacturing Dive

Electrolit is capitalizing on its recent success with a $400 million investment in a Waco, Texas production facility, the company announced in a press release last week.

It will be the first U.S. manufacturing plant for the Mexican hydration beverage brand since it launched stateside a decade ago.

The 600,000-square-foot facility is projected to open in early 2026, according to the press release. The factory will be “highly automated,” with the ability to incorporate recycled plastic packaging into its supply chain to reduce its carbon footprint, the Greater Waco Chamber of Commerce said.

A mainstay in the Mexican sports hydration space since its founding in 1950, Electrolit’s beverages — which are sold in 16 flavor varieties — also include magnesium, potassium, calcium and sodium glucose. It is owned by Pisa Pharmaceuticals, one of the largest pharmaceutical companies in Mexico.

The brand’s recent success in the U.S. resulted in a partnership with Keurig Dr Pepper in 2023 to sell and distribute the liquid.

Keurig Dr Pepper cited the brand’s strong following among the Hispanic demographic as a key factor in its decision to partner with the beverage maker.

Electrolit generates roughly $400 million in U.S. retail sales annually, according to law firm Capstone Partners which represents the brand.

Spearheaded by beverages such as Pedialyte and Unilever’s Liquid I.V., the hydration beverages space continues its rapid growth as consumers look for products to quench their thirst.

Brands have debuted powders and ready-to-drink bottles of their electrolyte-infused offerings designed for rehydration, whether to nurse a hangover or to supplement an intense workout. Soft drink giants Coca-Cola and PepsiCo have sought to cash in on the trend in the last two years by launching BodyArmor Flash I.V. and Gatorlyte, respectively.

The electrolyte-based beverages market is projected to be worth nearly $59 billion by 2032, increasing at a compound annual growth rate of 5.9%, Precedence Research found.