In a bid to enhance production capacity for its functional beverage brand Liquid IV, Unilever is investing $80 million into a US facility.
The group is expanding and automating sections of its Jefferson City facility to support the production of its powdered mix brand.
Improvements to the plant encompass automated packaging lines, a blending room, and adjustments to the heating and cooling systems of the building’s infrastructure.
The product line of Liquid IV comprises powder mixes which Unilever asserts enhance water absorption into the body, provide energy, and assist in achieving healthy sleep cycles.
Unilever purchased Liquid IV in 2020. The powder mix brand was founded in California by Brandin Cohen in 2012.
The Jefferson City facility employs approximately 450 workers. In January, Unilever disclosed plans to invest $25 million to expand the site’s storage and warehousing capabilities.
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“Securing supply chain resiliency for Liquid IV is a key factor in continuing to drive growth for the brand,” Jostein Solheim, the CEO of Unilever’s Health & Wellbeing business unit, said.
In its annual results statement for 2023, Unilever highlighted that Liquid IV had expanded its footprint beyond the US with a successful introduction in Canada. The company stated its intentions to introduce the brand to additional international markets.
Unilever CFO Fernando Fernandez told investors in an earnings call in February that Liquid IV grew at a double-digit rate in the fourth quarter of the year. He added the group was “shifting resources to the most profitable brands and we are increasing exposure to premium segment, to fast-growing channels, to the United States and we are optimising through portfolio bolt-on acquisitions like this one that really give us a very good exposure.”
In 2023, Unilever generated a group turnover of €59.6bn ($64bn), down 0.8% year on year. The company posted a net profit of €7.1bn, which was also down from the previous year by 13.7%.
