Launch Hydrate offers functional beverage opportunity for operators | Live from 2025 NAMA Show

At the 2025 NAMA Show in Las Vegas, Bob Tullio of Automatic Merchandiser interviews Dillon Houstoun, co-founder of Launch Hydrate, to explore how the functional beverage brand is gaining traction in vending and micro market channels.

Originally developed for youth athletes through a partnership with Perfect Game, Launch Hydrate is now expanding into workplace environments with a strong value proposition for convenience services operators.

Key takeaways from the interview:

• Clean-label formula: Made with real fruit juice, organic cane sugar, no artificial colors or dyes.
• Functional benefits: Contains four major electrolytes, Cognizin (a clinically studied nootropic), and L-Alanyl-L-Glutamine to enhance hydration and focus.
• High margin opportunity: Sells at approximately $1 more per unit than traditional isotonics, offering greater contribution margins for operators.
• Strong sales data: Averaging four units per day per location and achieving 40% category share with only 25% of shelf facings.
• Slotting and support programs: Includes financial incentives for operators and opportunities for additional distribution via youth sports channels.

With growing demand for clean, performance-driven beverages — particularly among Gen Z and millennial consumers — Launch Hydrate is positioned as a compelling new addition to operator product sets.

To learn more about Launch Hydrate:

• Visit Launch Hydrate
• Contact via a contact form

No time to listen? Prefer to read? Here is a video transcript:

It’s Bob Tullio, Automatic Merchandiser and Vending Market Watch. And I’m here at the 2025 NAMA Show in Las Vegas. And I’m here with Dillon Houstoun from Launch Hydrate. Dillon, thanks for having me into your booth.

Dillon Houstoun: Yeah, of course.

Bob Tullio: I’ve got to tell you, I know you’re excited. I know you’re very excited about Launch Hydrate. Tell me a little bit about the evolution of the product. Where did it come from?

Dillon Houstoun: Yeah, we launched this product almost two years ago, when a youth sports organization by the name of Perfect Game, which is the country’s largest baseball tournament operator, came to myself and another very experienced beverage entrepreneur out of Austin, Texas, looking for a product, a better isotonic for their athletes.

Bob Tullio: Okay. Well, did it take off?

Dillon Houstoun: It did. It did exceptionally well in their channel. They put on roughly 20,000 tournaments a year, have two and a half million participants, and we’ve been selling our product through their tournaments for the last 18 months.

Bob Tullio: So, what was the next step, and why are you not in convenience stores?

Dillon Houstoun: Yeah, we wanted to take a different route to market. Really sort of avoiding the traditional distribution system, delivering it directly to the consumer via concessions and workplace.

Bob Tullio: Well, you know, one of the things you have to ask about a drink is does it taste great?

Dillon Houstoun: It tastes very good. You know, while it has half the sugar as a traditional isotonic, it uses real fruit juice for flavoring and has a really clean, delicious and refreshing taste.

Bob Tullio: So, the next step for you is for operators to bring it into the workplace environment.

Dillon Houstoun: Yes, our route to market through the youth sports concessions, we actually were using operators to deliver that product for us. So, adding points of distribution and additional revenue to their business and our product performs well within their workplace and micro market channels.

Bob Tullio: Great. Well, I guess the other question is this. What is it about your product that sets it apart from your competition?

Dillon Houstoun: Yeah. So it has half the sugar as a traditional isotonic, real organic cane sugar, no artificial colors or dyes, uses real fruit juice for flavor. And it’s got a clean label, but it also has a performance element to it as well. So while it has half the sugar, it has four times the electrolytes. All four major electrolytes. And the thing that really sets it apart, has two novel ingredients in the isotonic space. One is a natural nootropic called Cognizin, which has been clinically shown to improve reaction time, focus and general cognitive health. And the other is  L-Alanyl-L-Glutamine, which actually helps your body absorb the electrolytes and fluid more efficiently and quicker.

Bob Tullio: I think the cognitive health is something I could definitely use. There’s no question about that.

So let’s talk about the office environment. Gen Zs, Millennials right now dominate the population there. You see this as a good fit.

Dillon Houstoun: Absolutely. I think the modern consumer is demanding clean label, is demanding no artificial dyes and colors, and is demanding a multi-functional beverage. So not just hydration, but I also want performance. So the cognitive elements. And then the data that we have within the space supports that.

Bob Tullio: Okay. How about from a flavor standpoint, what’s the number one seller?

Dillon Houstoun: Yeah, strawberry lemon right here — absolutely our number one seller. Very unique flavor profile. It’s the least sweet of all of them. You just can drink it in a couple of sips. It’s super refreshing, particularly on a hot day.

Bob Tullio: Sounds good, sounds good. What about in terms of performance from a selling standpoint, from a sales standpoint? What kind of data do you have?

Dillon Houstoun: Yeah, so we launched into the workplace about nine months ago in three regions, and we are averaging four units per day per store. We’ve actually grown the isotonic category in our markets that we’re going into. So, while we’re replacing some of the Powerades, the Gatorades, the Primes of the space. As from a slotting perspective, we’re actually growing the whole category. And probably most impressively, we’re 40% of the category share with only 25% of the facings.

Bob Tullio: Wow, that’s fantastic. So, from a performance standpoint, the data is right there. There’s no question about it.

Dillon Houstoun: Absolutely. And the other thing is that it’s all at a dollar per more per unit. So higher contribution margin for the operator.

Bob Tullio: Wow. So, you’re telling me that consumers will pay more for this product.

Dillon Houstoun: Absolutely, and partly, mainly because of the performance components. You have to drink three traditional isotonics to get the same amount of electrolytes that are in this product.

Bob Tullio: Wow, that’s fantastic. What’s the message that you would want to send to operators out there in terms of Launch Hydrate as a product?

Dillon Houstoun: Yeah, think the message is that this is a channel that we are fully focused on, and our goal is to provide value to operators. We have a slotting program that pays to get into their space, as well as bringing additional points of distribution through the youth sports concessions.

Bob Tullio: Fantastic. Well, good luck to you.

Dillon Houstoun: Thanks so much. I appreciate it.