Digital Social Hour Podcast Summary: "How This 32-Year-Old Built a $1B Water Company Without Plastic | Shadi Bakour DSH #976"

Release Date: December 13, 2024 | Host: Shadi Bakour | Guest: Shadi Bakour, CEO of Path Water

Introduction

In episode #976 of the Digital Social Hour Newsletter, host Shadi Bakour engages in a compelling conversation with Shadi Bakour, the visionary CEO of Path Water. The discussion delves deep into the journey of building a billion-dollar water company centered on sustainability, innovation, and combating the pervasive issue of microplastics.

1. The Alarming Rise of Microplastics

[01:01] Shadi Bakour (Host): "All this stuff with the microplastics is really concerning."

[01:34] Path Water CEO: "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."

The conversation kicks off with a stark revelation about the microplastic crisis, highlighting that the average American consumes a substantial amount of plastic weekly. The CEO emphasizes the severe health implications, noting the presence of microplastics in critical organs, including the brain.

2. Founding of Path Water: A Sustainable Vision

[01:30] Shadi Bakour (Guest): "I'm sure you guys have seen them around. Thanks for coming on, man."

[01:34] Path Water CEO: "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."

Founded at the young age of 22, Path Water emerged as a trailblazer in the sustainable beverage sector. The company's mission revolves around eliminating single-use plastics by introducing reusable aluminum bottles, positioning themselves at the forefront of environmental stewardship within the industry.

3. Overcoming Initial Challenges: From Concept to Market

[03:00] Path Water CEO: "Probably pandemic. Helped out a lot with like Amazon and the stuff economy of just like pumping as many..."

[11:14] Path Water CEO: "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."

The path to success was fraught with challenges, especially during the pandemic, which saw a surge in single-use plastic consumption. The CEO recounts humble beginnings—juggling multiple jobs to fund the venture and personally delivering products to retail outlets like 7/11s. This grassroots approach was essential in securing shelf space and building initial consumer trust.

4. Strategic Retail Placement: Choosing Impulse Over Intent

[14:09] Shadi Bakour (Host): "I always assume 7 11s were so corporate that they had to get product approval and everything."

[14:13] Path Water CEO: "80% of their products are corporate approval, 20% they can choose what they want."

A pivotal decision was made to focus on convenience stores rather than traditional health-focused grocery stores. The CEO explains that impulse buying at places like 7/11 proved more effective for their product, aligning with consumer behavior patterns focused on convenience and immediate needs.

5. Capital Raising and Scaling the Business

[10:52] Shadi Bakour (Host): "Were you raising capital back then or did you self fund everything?"

[10:55] Path Water CEO: "No, I've been raising capital since day one."

From day one, Path Water has been proactive in raising capital, essential for scaling operations, manufacturing, and distribution. The CEO highlights the importance of continuous fundraising to support inventory and expand retail presence, underscoring the necessity of financial backing in building a billion-dollar enterprise.

6. Authentic Sustainability: Beyond Marketing Gimmicks

[20:01] Path Water CEO: "There's very few examples of brands that have leveraged, like Kylie Cosmetics... So there's, it's just like an adrenaline shot for their business."

The CEO stresses the significance of authentic sustainability over superficial marketing tactics. Unlike brands that rely heavily on celebrity endorsements without a solid environmental foundation, Path Water focuses on genuine sustainability practices, ensuring long-term credibility and consumer loyalty.

7. Collaborations and Celebrity Partnerships

[17:03] Shadi Bakour (Host): "When did you see those celebrities and athletes start coming in to the company?"

[17:08] Path Water CEO: "... Vernon Davis was the first athlete investor that came on board."

Path Water has attracted investments from prominent celebrities and athletes such as Vernon Davis, Guy Fieri, Kevin Hart, Travis Scott, and even brands like SpaceX and Adidas. These partnerships are not merely transactional but stem from a shared commitment to sustainability and ethical business practices.

8. Navigating Competition and Market Dynamics

[10:24] Path Water CEO: "But generally, you know, at that time, 2019, like there weren't, there wasn't really much competition at all."

As the sustainability trend gained momentum, competition in the aluminum bottle market intensified. The CEO observes that while many new entrants initially emerge, sustaining growth in the beverage industry remains challenging due to high operational costs and the need for continuous innovation.

9. Future Vision: Expanding Impact and Advocacy

[21:38] Shadi Bakour (Host): "So, what’s your vision for the future?"

[21:08] Path Water CEO: "We're just having a lot of fun with it right now... reusable container."

Path Water's future vision encompasses not only expanding their market presence but also advocating for broader environmental and social causes. Initiatives include supporting autism awareness, COVID relief, and veteran support, reinforcing their commitment to social responsibility alongside business growth.

10. Actionable Takeaways for Listeners

[33:25] Path Water CEO: "Just instead of throwing things away, trying to find ways to repurpose them."

The episode concludes with practical advice for listeners to contribute to environmental sustainability. The CEO encourages repurposing items, reducing waste, and adopting reusable products to make a meaningful impact on the planet.

11. Conclusion

Shadi Bakour’s insightful interview with the CEO of Path Water offers a comprehensive look into building a successful, sustainable business from the ground up. Emphasizing authenticity, strategic market placement, and unwavering commitment to sustainability, Path Water serves as a model for aspiring entrepreneurs aiming to make a positive environmental impact while achieving substantial business success.

Notable Quotes

• Path Water CEO at [01:34]: "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."

• Path Water CEO at [04:24]: "It's 8 to 10 times more to make that bottle."

• Path Water CEO at [10:24]: "At that time, 2019, like there weren't, there wasn't really much competition at all."

• Path Water CEO at [20:01]: "There are very few examples of brands that have leveraged... it's just not going to work for us if you actually believe in us."

• Path Water CEO at [33:23]: "Instead of throwing things away, trying to find ways to repurpose them."

Learn More

To explore Path Water’s innovative approach to sustainable hydration, visit their website at drinkpathwater.com or follow them on Instagram for the latest updates and initiatives.

This summary captures the essence of the podcast episode, highlighting the main discussions, insights, and actionable advice shared by Shadi Bakour and the CEO of Path Water. For a more immersive experience, listening to the full episode is highly recommended.