Vancouver-based No Days Wasted has bold plans for 2021 after the supplements startup has experienced booming demand online since its inception, and successfully landed a deal with the cofounder of Clearbanc, Michele Romanow, on Dragon’s Den last year.
Nishal Kumar, a former product specialist at Tesla TSLA TSLA who launched his business to help prevent hangover and other negative side effects of drinking alcohol starting with a line of DHM Detox products, says the company is branching out into the supplement gummy category in March, and plans to enter brick-and-mortar retailers soon.
These expansions are expected to help No Days Wasted achieve well over $2 million in sales by the end of the year, growing significantly from its past two years of operations — $800,000 and $1.2 million in 2019 and 2020, respectively.
Hydration products market outlook
No Days Wasted was launched amid increasing consumer demand for hangover prevention and hydration products, which are estimated to reach $3.02 billion in global revenue by 2025, growing at 15% CAGR from $1.27 billion in 2019, according to Grandview Market Research.
The growth is primarily driven by increasing worldwide consumption of alcoholic drinks, analysts noted, despite recently emerged cannabis-infused products are expected to take larger shares of the beverage market in the future.
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“After having a few drinks with my friends in the evening, and I just felt awful the next day,” Kumar told me recently. “I wanted to see if there’s a better solution for [curing hangover], and that’s how I started diving deep into the science of that.”
DHM, also known as dihydromyricetin, is primarily derived from the fruit of hovenia dulcis, a raisin tree native to Japan and other parts of Asia. A recent study by researchers at University of Southern California found the chemical can also help suppress inflammation responses to protect liver health, in addition to triggering the liver to produce more ethanol-gobbling enzymes.
Kumar notes how there are existing clinical studies that have proved the efficacy of both No Days Wasted’s DHM Detox and hydration replenishment products, which are also added with other functional ingredients, including milk thistle, prickly pear, NAC, vitamins, and electrolytes.
“Our hydration replenisher has sodium and potassium, and only five grams of sugar — way less than other sports drinks,” he said, adding their upcoming gummy products, which will come in a 60-count bottle, are primary focused on boosting immune health.
“Quality control is of the utmost importance,” Kumar continued. “We’re only sourcing the best ingredients possible, making sure our products are packaged [in a way that conveys] the lifestyle and message we all stand for.”
Fundraising to expand retail presence
No Days Wasted has adopted a digital-first strategy from the beginning with direct-to-consumer remaining to be its primary revenue driver, and 30-40% of its gross sales coming from Amazon AMZN AMZN .
The company’s biggest plan in 2021 is to start growing its retail and global footprint as it is currently exploring several retail partnerships. Kumar said: “We also have a couple of wholesale relationships that we’re working on, but the first goal is to get us into 7-Eleven and private liquor stores.”
Once its loyal customer base is established, No Days Wasted will soon raise its first equity round, which is expected to increase its valuation to around $10 million.
“I put a lot of my personal money [into launching the business], and then brought Indochino’s CEO Drew Green as an advisor,” who Kumar believes has great business relationships, success in retail, and a proven track record.
“Drew is an important shareholder, and is actively involved with strategy, making introductions, and helping facilitate growth,” he said. “He will also be involved when we do decide to raise money at some point this year.”