Digital Social Hour: How This 32-Year-Old Built a $1B Water Company Without Plastic | Shadi Bakour DSH #976
Release Date: December 13, 2024
Introduction
In episode #976 of Digital Social Hour, host Sean Kelly sits down with Shadi Bakour, the dynamic 32-year-old CEO of Pathwater, to delve into his journey of building a billion-dollar water company without the use of plastic. The conversation explores the environmental challenges posed by microplastics, the innovative solutions Pathwater employs, and the strategies that propelled the company to remarkable success.
1. The Microplastics Crisis
The episode opens with a discussion about the alarming rise of microplastics in the environment and their impact on human health.
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Sean Kelly (A): "All this stuff with the microplastics is really concerning." [00:01]
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Shadi Bakour (B): "We eat a credit card worth of plastic every single week in the US through microplastics. It's like 0.5% of our brain matter is microplastics now." [00:03-00:20]
Shadi highlights the pervasive nature of microplastics, emphasizing their infiltration into the human body and the environment. He points out that despite plastic being a revolutionary material, its misuse has led to severe ecological and health consequences.
2. Pathwater’s Sustainable Innovation
Pathwater emerges as a pioneer in the beverage industry by eliminating single-use plastics and opting for more sustainable materials.
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Sean Kelly (A): "You were probably one of the first companies to use that material in your water, right?" [00:31]
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Shadi Bakour (B): "We were definitely the pioneers in the space, and we're still continuing to lead the pack in terms of sustainability in the entire beverage industry." [00:35-00:44]
Shadi explains that Pathwater utilizes aluminum for its bottles, which, although eight to ten times more expensive to produce than plastic, offers a sustainable alternative that aligns with their environmental mission.
3. The Surge in Plastic Production
The conversation shifts to the exponential increase in plastic production over the past three years, largely influenced by the pandemic and the rise of fast fashion.
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Shadi Bakour (B): "Most of the plastic that that's been created in the world has been created over the past three years." [01:30-01:43]
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Sean Kelly (A): "What caused that massive spike three years ago, you think?" [01:58]
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Shadi Bakour (B): "Probably pandemic... technology allows manufacturing to scale up at a much more rapid pace today." [02:02-02:21]
This surge has exacerbated the microplastics problem, making sustainable alternatives like Pathwater even more critical.
4. Building Pathwater: From Concept to Market
Shadi recounts the humble beginnings of Pathwater, from driving Uber and working at a restaurant to envisioning a plastic-free water company.
- Shadi Bakour (B): "I was driving Uber and working at an Italian restaurant on the weekends... loading up 60 cases of water in the back of my beat-up Prius..." [08:22-09:00]
Shadi details the grassroots efforts to introduce Pathwater into local stores, particularly focusing on 7-Eleven outlets, which proved more effective for impulse purchases compared to traditional grocery stores.
5. Raising Capital and Scaling the Business
From self-funding initial operations to securing investments from high-profile individuals, Shadi explains the financial strategies that fueled Pathwater's growth.
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Sean Kelly (A): "Were you raising capital back then or did you self fund everything?" [08:00]
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Shadi Bakour (B): "I've been raising capital since day one." [08:04]
Shadi emphasizes the importance of continuous capital raising, even pre-revenue, to sustain and scale the business effectively.
6. Strategic Distribution and Market Penetration
Pathwater’s strategic placement in airports and partnerships with major organizations like SpaceX and Adidas played a pivotal role in its widespread adoption.
- Shadi Bakour (B): "We replaced about 4 or 5 million bottles a year" at San Francisco International Airport. [06:00-07:05]
These strategic moves not only increased visibility but also underscored Pathwater’s commitment to sustainability in high-traffic areas.
7. Collaborations and Celebrity Investments
Pathwater attracted investments from notable figures such as Vernon Davis, Guy Fieri, Kevin Hart, and even Michael Jordan, fostering credibility and expanding its market reach.
- Shadi Bakour (B): "We have like Kevin Hart, Travis Scott, Becky G, like Michael Jordan, you know, Ninja Fortnite." [13:17-14:20]
Shadi attributes these collaborations to authentic alignment with the brand's values rather than mere financial transactions, ensuring long-term partnerships.
8. Authenticity and Long-Term Vision
Shadi contrasts Pathwater's authentic approach to sustainability with brands that rely on superficial marketing tactics. He stresses the importance of building a genuine brand that stands the test of time.
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Shadi Bakour (B): "If you actually believe in us, then you invest. And that's the model that we went by." [14:20-15:12]
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Shadi Bakour (B): "Authenticity today in any company is what's going to win in the market." [23:26]
He underscores that sustainable practices and authentic brand values are crucial for lasting success, as opposed to short-lived marketing gimmicks.
9. Future Vision and Sustainable Impact
Looking ahead, Shadi shares Pathwater's mission to expand its sustainable practices and contribute positively to global environmental goals.
- Shadi Bakour (B): "We see that as an opportunity to raise awareness about a cause that... a lot of people are really passionate about." [23:08-24:58]
Pathwater aims to leverage its platform to support various social causes, reinforcing its commitment to sustainability and societal well-being.
10. Actionable Steps for Listeners
To conclude, Shadi offers practical advice for listeners eager to make a positive environmental impact.
- Shadi Bakour (B): "Instead of throwing things away, trying to find ways to repurpose them... things can have multiple uses and last for much longer." [29:24-30:22]
He encourages embracing sustainability by repurposing items, reducing waste, and making conscious consumer choices to collectively make a significant environmental difference.
Notable Quotes
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"We eat a credit card worth of plastic every single week in the US through microplastics." — Shadi Bakour [00:20]
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"Plastic might be one of the greatest inventions of all time... but we as human beings have misused plastic." — Shadi Bakour [03:25-03:45]
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"Pathwater is the water company that doesn't want to sell you any more water, you know? Buy this and never buy another bottle again." — Shadi Bakour [22:15-22:26]
Conclusion
Shadi Bakour's journey with Pathwater is a testament to the power of innovation, sustainability, and authentic branding. By addressing the critical issue of microplastics and offering a viable, eco-friendly alternative, Pathwater not only carved a niche in the competitive beverage industry but also set a benchmark for future sustainable enterprises. Sean Kelly and Shadi Bakour wrap up the episode with actionable insights, inspiring listeners to contribute to environmental preservation through mindful consumption and repurposing.
For more information about Pathwater, visit pathwater.com or follow them on Instagram.
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