VitHit aiming for global growth following distribution deals

VitHit breaks into Ireland's top five sellers in convenience category

Gary Lavin of Vit-Hit. Picture by Lorraine O'Sullivan

Fearghal O'Connor

April 25 2021 02:30 AM

Irish drinks company VitHit has landed a series of major international distribution deals, including a launch in the 80 Manhattan stores of Walgreens offshoot Duane Reade.

Walgreens, which is the biggest pharmacy chain in the US with 9,000 stores, will use the Manhattan stores as a test case for the Irish drink, according to VitHit founder and chairman Gary Lavin.

The drink has also just launched in 1,500 branches of Co-Op, Britain’s fifth-largest retailer, as well as in Woolworths Metro, the premium arm of Australia’s biggest retailer.

VitHit is also launching in a number of new service station chains, including Shell Netherlands, BP UK, Caltex and Endeavour in Australia and also at 150 Eurogarages sites.

Electronic point of sales (EPOS) data for January showed that for the first time VitHit had broken into the top five best-selling drinks in Ireland in the convenience category, behind Lucozade Energy, Monster, Coca-Cola and Red Bull.

“We were higher than Lucozade Sport – that was a big moment for us,” said Lavin, a former professional rugby player.

Sales had been hit during the pandemic, but the company is now expecting strong growth, he said.

“When the pandemic hit, instead of hitting the panic button, as a company we saw an opportunity. Firstly, and most importantly, nobody was to lose their job.

"This challenge would end, and when it did, we would plan for a better and bigger future.

"If you don’t have people, your brand isn’t worth a lot – so we made a plan to reduce wages moderately and spread it across the group. This way the pain was felt by everyone, but nobody lost their income.”

Management took a 30pc pay cut, while other workers had pay reduced by 10pc.

“We repurposed a few people to focus on future sales. Basically, we knew we were about to embark on a few leaner months, but we thought what if we focused on gaining some new national store listings in other countries, as opposed to just protecting what we have?”

Lavin said that the shift in focus had led to the company winning “an incredible amount of new accounts” that would help it grow strongly post-pandemic.

“These new listings in the UK for instance will bolster our position as the best-selling functional drink there and bring extra revenue which will compound growth. The other areas of growth expands our presence in the likes of Australia and Netherlands, which are both part of a refocus in 2021,” he said.