Air Up

Last updated
air up GmbH
Company type GmbH
Industrybottle manufacturer
Founded2018
Headquarters,
Key people
  • Jannis Koppitz
  • Simon Nüesch
  • Christian Hauth
  • Magdalena Jüngst
  • Tim Jäger
  • Fabian Schlang
Productswater bottle that enhances plain water with flavour
Revenue>€200 million [1]
Number of employees
>300 [2]
Website shop.air-up.com

air up GmbH is a manufacturer of water bottles with different scents, headquartered in Munich, Germany. [3] [4] The company is the first to have developed a drinking system that works through scents by means of retronasal smell. [5]

Contents

In 2023, air up generated revenue of over €200 million and employed more than 300 employees. [1] [2]

History

Foundation and beginnings

Founded in 2018 by Fabian Schlang, Tim Jäger, Lena Jüngst, Simon Nüesch, and Jannis Koppitz, [6] the idea for air up emerged in 2016 during the product design studies of Jüngst and Jäger. Their aim was to develop a flavoured water option without added sugars. [7] [8]

Within the first six weeks of its establishment, the company sold 80,000 bottles via online marketplaces and offline retail. [9]

Expansion

In 2019, the company began selling the bottles through online retail. [6]

The company subsequently expanded into the European market, including Austria, Switzerland, the Netherlands, [5] France, Belgium, Great Britain, [10] Italy, and Sweden. [11] In 2022, air up made its entry into the US market [11] and introduced eleven new flavours that same year. [12]

Over the years, the company has raised over €60 million through various funding rounds, attracting investments from beverage company PepsiCo and venture capitalist Frank Thelen. In the fiscal year 2022, Air Up reported a revenue increase of 75%, reaching approximately €160 million. [13]

Recent developments

Between 2022 and 2024, air up invested over €20 million in production improvements. To ensure sustainable production practices, the company has relocated its bottle manufacturing from China to Europe: The production of the tritan bottles is located in Austria, while the pods are produced in the Netherlands. [5] [14] [12]

In 2023, over 10,000 sold counterfeit air up products were recorded. This led to significant revenue losses for the company – over €10 million – as some customers opted for these cheaper imitations instead of the original product. [15]

By early 2024, however, air up had sold over 5 million bottles and achieved a tenfold increase in revenue within three years. [16]

Product and technology

The core principle behind air up is retronasal olfaction, [17] a process where scents are detected through the nasal cavity as air is exhaled, enhancing the perception of taste. [7] [18] By leveraging this biological mechanism, air up creates the impression of drinking flavoured water without actually incorporating any flavours, sugars, or additives into the liquid. [3] [7] [19]

The air up bottles are made from durable, BPA-free plastic [19] or alternatively from steel. The sizes for the plastic bottles range from 650 mL to 850 mL. [20] The bottles feature a built-in straw. [19] The straw directs airflow through the scent pods as users drink, allowing the aromas to reach the olfactory receptors. This creates the perception of flavoured water in the brain. [16]

Scent pods are small, interchangeable cartridges located at the top of the bottle. Each pod contains aromas from plant-based ingredients and can flavour several litres of water. [3] [19] The pods are made from recyclable materials and available in different flavours. [21] [22]

Reception

In January 2022, Daniel Böniger wrote in Der Bund that the drinking bottles from air up had become a "must-have for teenagers", while questioning the price point of the bottles. [23] Jelmer Luimstra analysed in Business Insider Nederland in 2023, that the cost for the pods per litre is on average lower than the cost for the same amount of fizzy or flavoured drinks bought in supermarkets, however, customers only save money over a longer period of time due to the initial cost of the bottle. Luimstra also said that the strength of flavour varies between the pods. [24]

Katharina Koerth wrote in Der Spiegel in April 2022 that air up is one of the most successful startup brands in Germany. Through research into the company's practices however, Koerth commented that the website claimed that the scent pods are made from recycled materials, which upon further investigation turned out to be untrue, with company management stating that the pods have not been made from recycled materials, but from recyclable materials. The mistake on the website was acknowledged and the wording was changed shortly after. [25] Zoe Wood of The Guardian suggested in May 2024 that Air Up "might keep children away from sugary drinks". [1]

In an October 2024 article, Elisabeth Gerstendorfer of Kurier quoted Klaus Dürrschmid from the Institute of Food Sciences in Vienna. He said that Air Up uses only "food-grade flavours" which pose "no toxicological risk" and comply with legal standards applicable to the food and beverage industry. [26]

Max Skowronek from Business Insider wrote in November 2024 that air up had "managed to grow from a small startup to a successful company within a few years". [5]

Awards (selection)

Related Research Articles

<span class="mw-page-title-main">Bottled water</span> Water sold as a bottled product

Bottled water is drinking water packaged in plastic or glass water bottles. Bottled water may be carbonated or not, with packaging sizes ranging from small single serving bottles to large carboys for water coolers. The consumption of bottled water is influenced by factors such as convenience, taste, perceived safety, and concerns over the quality of municipal tap water. Concerns about the environmental impact of bottled water, including the production and disposal of plastic bottles, have led to calls for more sustainable practices in the industry.

<span class="mw-page-title-main">Dasani</span> Bottled water brand

Dasani is a brand of bottled water created by the Coca-Cola Company, launched in 1999. It is one of many brands of Coca-Cola bottled water sold around the world. The product is filtered and bottled.

Lucozade is a British brand of soft drinks and energy drinks manufactured and marketed by the Japanese company Suntory. Created as "Glucozade" in the UK in 1927 by a Newcastle pharmacist, William Walker Hunter, it was acquired by the British pharmaceutical company Beecham's in 1938 and sold as Lucozade, an energy drink for the sick. Its advertising slogan was "Lucozade aids recovery". It was sold mostly in pharmacies up until the 1980s before it was more readily available as a sports drink in shops across the UK.

<span class="mw-page-title-main">Lemon & Paeroa</span> New Zealand soft drink

Lemon & Paeroa, often shortened to L&P, is a sweet, lemon-flavoured soft drink manufactured in New Zealand. It is considered Kiwiana, and was traditionally made by combining lemon juice with naturally carbonated mineral water from the town of Paeroa. Today, it is manufactured by multi-national Coca-Cola. The origin date of the drink is uncertain, but the brand estimates 1907.

<span class="mw-page-title-main">Thums Up</span> Brand of cola in India

Thums Up is a brand of cola. It was introduced in 1977 to offset the withdrawal of The Coca-Cola Company from India. The brand was later bought by Coca-Cola who re-launched it in order to compete against Pepsi to capture the market.

<span class="mw-page-title-main">A.G. Barr</span> British soft drink producer

A.G. Barr p.l.c, commonly known as Barr's, is a Scottish soft drink and energy drink manufacturer based in Cumbernauld, North Lanarkshire, Scotland widely known for manufacturing the drink Irn-Bru. It is listed on the London Stock Exchange (LSE) and is a constituent of the FTSE 250 Index.

<span class="mw-page-title-main">The Coca-Cola Company</span> American multinational beverage corporation

The Coca-Cola Company is an American multinational corporation founded in 1892. It manufactures, sells and markets soft drinks including Coca-Cola, other non-alcoholic beverage concentrates and syrups, and alcoholic beverages. Its stock is listed on the New York Stock Exchange and is a component of the DJIA and the S&P 500 and S&P 100 indexes.

Campari is an Italian alcoholic liqueur, considered an apéritif of the amaro variety, obtained from the infusion of herbs and fruit in alcohol and water. It is a type of bitters, characterised by its dark red colour. It is produced by the Davide Campari Group, a multinational company based in Italy.

<span class="mw-page-title-main">Perrier</span> Mineral water brand

Perrier is a French brand of natural bottled mineral water obtained at its source in Vergèze, located in the Gard département. Perrier is known for its carbonation and its distinctive green bottle.

<span class="mw-page-title-main">PepsiCo</span> American multinational food and beverage corporation

PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc., PepsiCo has since expanded from its namesake product Pepsi Cola to an immensely diversified range of food and beverage brands. The largest and most recent acquisition was Pioneer Foods in 2020 for US$1.7 billion and prior to it was buying the Quaker Oats Company in 2001, which added the Gatorade brand to the Pepsi portfolio and Tropicana Products in 1998.

<span class="mw-page-title-main">Container-deposit legislation</span> Return of beverage containers for refund

Container-deposit legislation is any law that requires the collection of a monetary deposit on beverage containers at the point of sale and/or the payment of refund value to the consumers. When the container is returned to an authorized redemption center, or retailer in some jurisdictions, the deposit is partly or fully refunded to the redeemer. It is a deposit-refund system.

<span class="mw-page-title-main">Volvic (mineral water)</span> Brand of mineral water

Volvic is a brand of mineral water. Its source is in the Chaîne des Puys-Limagne Fault, Auvergne Volcanoes Regional Park, at the Puy de Dôme in France.

<span class="mw-page-title-main">Bisleri</span> Indian bottled water company

Bisleri International is an Indian multinational company which is best known for the eponymous brand of bottled water. The company was started in the 1970s by Ramesh Chauhan, and sells bottled water and soft drinks.

<span class="mw-page-title-main">Ethos Water</span> Brand of bottled water

Ethos Water is an American brand of bottled water with a social mission of "helping children get clean water." A Starbucks subsidiary, Ethos began in 2001 when Peter Thum had the idea after working in communities in South Africa that lacked access to clean water. Thum, who was working as consultant for McKinsey & Company at the time, realized the potential to create a bottled water brand to raise awareness and funding for safe water programs. The idea became an obsession for Thum, and he wrote the business plan for Ethos, left McKinsey, and moved to New York in early 2002 to start the venture.

<span class="mw-page-title-main">Bionade</span> Range of non-alcoholic drinks

Bionade [ˌbi.(j)oˈnaːdə] is a German range of non-alcoholic, organic fermented and carbonated beverages. It is manufactured in the Bavarian town of Ostheim vor der Rhön by the Peter beer brewery. Sales started in 1995 and Bionade is now available in most European countries. Until 2018 Bionade GmbH was a subsidiary of Radeberger, a group of breweries which is a division of Dr. Oetker. Now Bionade is part of the Hassia Group.

<span class="mw-page-title-main">Red Dot</span> German international design prize

The Red Dot Design Award is an international, annual design competition for product and industrial design, brand and communication design as well as design concepts, in which the Red Dot quality label is awarded to winners. The Red Dot Design Award, which is organized by Red Dot GmbH & Co. KG, dates back to 1954 when the "Verein Industrieform e. V." was founded.

Retronasal smell, retronasal olfaction, is the ability to perceive flavor dimensions of foods and drinks. Retronasal smell is a sensory modality that produces flavor. It is best described as a combination of traditional smell and taste modalities. Retronasal smell creates flavor from smell molecules in foods or drinks shunting up through the nasal passages as one is chewing. When people use the term "smell", they are usually referring to "orthonasal smell", or the perception of smell molecules that enter directly through the nose and up the nasal passages. Retronasal smell is critical for experiencing the flavor of foods and drinks. Flavor should be contrasted with taste, which refers to five specific dimensions: (1) sweet, (2) salty, (3) bitter, (4) sour, and (5) umami. Perceiving anything beyond these five dimensions, such as distinguishing the flavor of an apple from a pear for example, requires the sense of retronasal smell.

<span class="mw-page-title-main">Glaceau Smartwater</span> Bottled water company

Glaceau Smartwater is a brand of bottled water owned by Energy Brands, a subsidiary of The Coca-Cola Company. Introduced in 1996 as Ice Mountain Spring Water and Glaceau Mineral Water in the United States, it became known as Smart Water in 1998. By 2016, it was one of the top five most sold brands of bottled water in that country with sales worth nearly $830 million in 2017.

<span class="mw-page-title-main">Bubly Sparkling Water</span> Brand of carbonated water

Bubly Sparkling Water, or simply Bubly, is a line of flavoured sparkling water distributed by PepsiCo. Distribution of the product first began in February 2018, with eight flavours introduced as part of the initial line-up. The brand is aimed at competing in the growing market for healthier alternatives to traditional soft drinks, primarily against other sparkling water brands such as La Croix.

References

  1. 1 2 3 Wood, Zoe (2024-05-17). "Air Up: scent-flavoured water bottle becomes latest playground craze". The Guardian . Retrieved 2024-11-06.
  2. 1 2 Gillner, Susanne (2023-04-25). "Air up: Umsatzwachstum von 75 Prozent in einem Jahr". Werben & Verkaufen. Retrieved 2024-11-06.
  3. 1 2 3 Atmaca, Elif (2024-03-15). "Geschmack durch Duft? Air-Up-Wasserflasche im Check". Frankfurter Allgemeine Zeitung . Retrieved 2024-11-05.
  4. Hoffmann, Catherine (2023-04-24). "Wenn Leitungswasser nach Kokos schmeckt". Süddeutsche Zeitung . Retrieved 2024-11-06.
  5. 1 2 3 4 Skowronek, Max (2024-11-01). "Expansion in Europa und den USA: Wie Air Up den Einzelhandel erobern will". Business Insider . Retrieved 2024-11-05.
  6. 1 2 Mathewson, Fiona (2021-09-29). "Münchener Trinkflaschen-Startup Air Up kassiert 40 Millionen Euro". Business Insider . Retrieved 2024-11-05.
  7. 1 2 3 Koerth, Katharina (2022-04-02). "Der zweifelhafte Hype um die Duftwasserfirma Air Up". Der Spiegel . Retrieved 2024-11-05.
  8. "Lena Jüngst". Forbes . 2021-11-23. Retrieved 2024-11-05.
  9. Clawson, Trevor (2022-04-21). "New Tricks – Why A German Water Bottle Startup Has Attracted Investment From Pepsico". Forbes . Retrieved 2024-11-06.
  10. Ströbitzer, Sophie (2022-01-13). "Die Nase trinkt mit". Forbes . Retrieved 2024-11-05.
  11. 1 2 "Start-Up Agentur Tres Bien begleitet Air Up jetzt auch in den USA". Werben & Verkaufen. 2022-07-13. Retrieved 2024-11-06.
  12. 1 2 Bothe, Claudia (2024-03-19). "Es gibt kein nachhaltiges Produkt". Frankfurter Allgemeine Zeitung . Retrieved 2024-11-06.
  13. Schimroszik, Nadine (2023-12-15). "Air Up wehrt sich gegen Greenwashing-Vorwürfe". Handelsblatt . Retrieved 2024-11-06.
  14. Dörr, Rebecca (2020-01-20). "Air Up: Die neue Generation die Trinkflasche". Mitteldeutsche Zeitung. Retrieved 2024-11-06.
  15. Nowshin, Sadia (2024-02-22). "How going viral on TikTok cost this startup €10m in revenue". Sifted. Retrieved 2024-11-06.
  16. 1 2 3 Gorgs, Claus (2024-05-07). "Wie Air Up erfolgreich eine Illusion verkauft". Manager Magazin . Retrieved 2024-11-05.
  17. "Review: The Air Up Water Bottle". Wired. 2023-10-12. Retrieved 2024-11-05.
  18. Heilmann, Stefan; Strehle, Gundel; Rosenheim, Kati; Damm, Michael; Hummel, Thomas (2002-04-01). "Clinical Assessment of Retronasal Olfactory Function". Archives of Otolaryngology–Head & Neck Surgery. 128 (4): 414–418. doi:10.1001/archotol.128.4.414. ISSN   0886-4470. PMID   11926917.
  19. 1 2 3 4 "Cleverer Anreiz für Wassermuffel". Stiftung Warentest . 2022-09-15. Retrieved 2024-11-05.
  20. Ludlow, David (2023-07-20). "Air Up Water Bottle Review". Trusted Reviews . Retrieved 2024-11-06.
  21. Ströbitzer, Sophie (2022-01-13). "Die Nase trinkt mit". Forbes . Retrieved 2024-11-06.
  22. "Wasser trinken, Limonade schmecken, Plastik sparen? Wir haben Air up getestet". Watson. 2020-10-27. Retrieved 2024-11-06.
  23. Böniger, Daniel (2022-01-19). "So teuer kann Wassertrinken sein". Der Bund . Retrieved 2024-11-06.
  24. Luimstra, Jelmer (2023-02-23). "Zijn geurpods van waterfles Air Up goedkoper dan gewone frisdrank? We keken naar het prijsverschil met goedkope Aldi-frisdrank en Coca-Cola". Business Insider Nederland (in Dutch). Retrieved 2024-11-14.
  25. Koerth, Katharina (2022-04-02). "Der zweifelhafte Hype um die Duftwasserfirma Air Up". Der Spiegel . Retrieved 2024-11-06.
  26. "Das „Duftwasser“ im Check". Kurier . 2024-10-25.
  27. Rentz, Ingo (2021-09-15). "Das sind die stärksten deutschen Startup-Marken". Horizont.
  28. Madita, Lege; Lunday, Chris (2023-11-08). "Mit Tiktok den Umsatz verdreißigfacht: Diese Startups bauen die besten Brands". Business Insider . Retrieved 2024-11-06.
  29. "Nachhaltigkeit und neue Zielgruppen - die Pläne von Air up". Werben & Verkaufen. 2024-06-25. Retrieved 2024-11-13.
  30. "Air Up Scentaste bottle". iF Design Award. Retrieved 2024-11-13.
  31. "Game Changer Award' für Zalando, Motel One und BASF". Markenartikel. 2018-11-26. Retrieved 2024-11-06.