A VC’s Take on: Dirty Lemon

This story was originally posted on my instagram (Digitallyyours_) An account where I use a venture capital lens to discuss today’s digitally-native, venture-backed products (DNVBs) at their earliest stages and beyond.

• The Elevator Pitch: The “text-to-buy” wellness beverage
• Today: Dirty lemon is run by a lean team of ~22 individuals. Although funding is undisclosed, Simon Ventures, the venture of arm of the shopping mall group, has invested. The company is also in the middle of closing a round from celebrities and investors, including Winklevoss Capital, Betaworks and the investment fund of the YouTube stars Jake Paul and Cameron Dallas.
• The Opportunity: The massive $100B+ beverage industry is largely owned by only two companies @Pepsi and @Coke. Given that most consumers do not have strong affinities to either of these brands, there is a massive opportunity to build a loyal community of consumers.
• The Experience: Backed by an incredible team of qualified, thought leaders, such as Zak Normandin and Sommer Carroll, part of Dirty Lemon’s attained success can be credited to its focus on conversational commerce. What do I mean? Well, Dirty Lemon has ditched traditional distribution methods in the beverage industry (e.g. via a retailer) and is relying 100% on text messaging to bring in sales. However, that is not the only feature separating Dirty Lemon from any other beverage. It also has a unique collection of flavors such as: Charcoal, CBD, and Ginseng. At $65 for a case of six, the target audience is someone looking for a luxury wellness experience they aren’t finding at the local grocery store. Furthermore, this product feels like a constant reminder that you are fabulous. This product truly is meant to be an accessory to the already chic girl. Also, let’s not forget that the team is using machine learning to automate its customer service. Dirty Lemon has also been trying creative marketing approaches: earlier this month, it opened a drug store in NYC with no staff. The strategy? Pick up the drink then text to pay. While relying on an honor system to pay is rather untraditional, these wacky tactics are part of what makes Dirty Lemon so unique.
• Dirty Lemon’s ingenious purchase method (text to buy) has helped the company build an intimate relationship with the buyer. Given that text messaging has historically been reserved for just friends and family, for the consumer, Dirty Lemon’s method naturally feels like purchasing a drink from a friend. The beauty? Dirty Lemon owns this customer connection.