Expect to see a lot of the Rock.
(Bloomberg) — Dwayne Johnson’s Zoa Energy is planning a major push this year, pumping investment into promoting the young brand as it jockeys for position in the fiercely competitive energy drink industry.
Zoa will triple its marketing spending this year in order to get its name in front of consumers with ad campaigns rolling out through the year, Johnson said in an interview. The brand has also revamped its packaging with a new can design and will fill the calendar with pop-up shops, contests and influencer programs.
“We’ll concentrate on our shopper marketing efforts through a variety of channels, including our digital, at home, paid social media and me speaking directly to the consumer, right down the lens,” Johnson said.
Celebrity-linked energy drinks have garnered interest in recent years as the category grows. Prime, a beverage from YouTubers Logan Paul and KSI, has fueled hype for the industry in recent months, with bottles selling out in Europe and resold at a markup on marketplaces like EBay. PepsiCo Inc. bought a $550 million stake in Celsius, an A-list favorite, last year.
Zoa, which was founded by Johnson, his longtime business partners Dany Garcia and Dave Rienzi, and John Shulman of private equity firm Juggernaut Capital Partners, broke $100 million in retail sales in its first full year in 2022. The drink is now available at about 50,000 distribution points. Executives expect triple-digit percentage growth in 2023 and have their sights on international expansion after entering Canada last year.
Johnson said he’ll be heavily involved in the brand’s promotion as it seeks out new customers. In December, Zoa signed a sponsorship deal with the XFL and will work with the football league on behind-the-scenes social content and live events, with a particularly large presence on opening weekend in February when the league relaunches under Johnson and Garcia’s new ownership group.
The movie star and former pro wrestler nicknamed “The Rock” has a broad business portfolio that includes television and film production, sportswear and tequila. He got into the energy-drink industry after consuming the beverages for decades without ever being totally sure what was in them.
“We thought, you know what? Let’s do it ourselves,” said Johnson. “Fingers crossed, with a lot of hard work and little luck — or a lot of hard work and a lot of luck — we might take some of that $20 billion share that has blessed the energy-drink category.”
Management isn’t looking for additional funding at the moment, having secured a $10 million line of credit from Gerber Finance last February, according to Shulman.
“We’re fully funded and we’re very happy with it,” Shulman said. “All of our founders are investors and we have no need for outside funding.”
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