A revolutionary all-natural functional beverage called KEY has recently hit the market, promising sustained energy levels without the negative side effects of caffeine or blood sugar spikes. The brainchild of former Coca-Cola and PepsiCo executives, Karishma Thawani and Tekla Back, KEY’s main goal is to help consumers eliminate sugar from their diets while reshaping the $20 billion energy drinks industry with innovative, scientifically supported alternatives. With a recent launch online, including through direct-to-consumer channels and select retailers in Los Angeles and New York such as Erewhon Market, KEY has successfully secured a $4 million seed funding round led by AgFunder, a prominent foodtech investment firm. Alethia Ventures and SIJ Impact Fund have also contributed to this funding round, which will facilitate the brand’s retail expansion, marketing initiatives, and product inventory management over the next 12 to 18 months.
Unlike traditional energy sources like carbohydrates, fats, and proteins, KEY’s key ingredient is ketones. Ketones, produced by the liver when the body burns fat for energy, can be naturally triggered during fasting, intense exercise, or a low-carb diet. While ketones gained popularity in the early 2000s for their potential to improve cognitive and physical performance, they are still considered novel in the functional food and beverage sector. Back, a seasoned keto dieter, explains that ketones provide more energy than sugar and offer benefits such as enhanced focus, appetite control, and sustained energy levels without the crash associated with sugar intake. The development of KEY’s technology was influenced by Thawani and Back’s work at Motif Foodworks, where they utilized precision fermentation processes. This experience inspired them to create a product that prioritizes health and wellness by using innovative techniques to enhance the accessibility of ketones, making them more beneficial for consumers.
KEY’s entry into the market coincides with a period of rapid growth in the U.S. energy drinks sector. According to Research and Markets analysts, the energy drinks category is projected to grow at an 8% CAGR between 2023 and 2030, reaching $33 billion in sales by the end of the forecast period. In addition to established consumer giants like Coca-Cola and PepsiCo making significant investments in the energy drinks space, newer players such as Rowdy Energy Drink, ZOA by Dwayne ‘The Rock’ Johnson, and Gorgie founded by Michelle Cordeiro Grant are also expanding their presence in the market. Thawani emphasizes KEY’s unique selling points, stating that the brand is focused on empowering individuals to unleash their potential and tap into their internal energy resources.
As the beverage industry continues to evolve and consumer preferences shift towards healthier and more sustainable options, KEY’s innovative approach to energy drinks positions it as a promising contender in the market. By combining science-backed ingredients, cutting-edge technology, and a commitment to consumer well-being, KEY is well-positioned to revolutionize the energy drinks category and carve out a distinct space for itself among competitors. With an emphasis on providing long-lasting energy, enhanced focus, and a healthier alternative to traditional energy drinks, KEY is poised to become a go-to choice for individuals seeking a natural and effective way to boost their energy levels without compromising on taste or quality.