Mineragua may pose a challenge in terms of pronunciation, yet its owners believe that the distinct name can play a crucial role in establishing authenticity for the sparkling water brand as it competes with industry giants like Coca-Cola and Nestlé. “We’re not changing just to cater to the general market,” stated Efrain Mendoza, a brand manager at Novamex, acknowledging that the name is “a bit tricky to pronounce.” He emphasized their commitment to staying true to their roots and the cultural heritage behind the brand. Introduced in 1997 by Novamex, a Texas-based beverage company known for producing Jarritos flavored soda and a non-alcoholic sparkling drink called Sangría Señorial, Mineragua was initially branded as Jarritos Mineragua Club Soda. In 2021, Novamex revamped the brand, replacing the club soda reference with a trendier sparkling water description featuring ascorbic acid and ferrous fumarate.
Over the years, Novamex has also updated the packaging and simplified the ingredients list (the specifics of which the company chose not to disclose), allowing them to emphasize the minerals and carbonation. Utilizing tap water sourced from two locations in Mexico, Novamex adds minerals and carbon dioxide to create Mineragua, which is currently offered in only one SKU. Although the company has experimented with flavored variants internally, the immediate focus remains on expanding distribution and attracting more customers beyond its core Hispanic demographic. “Our customers observe what the competition is doing and request flavors,” Mendoza noted. “However, we first need to strengthen consumer engagement before considering brand expansion. For now, we’ll stick with what we have.”
This gradual approach to growing Mineragua sharply contrasts with competitor Topo Chico, which Coca-Cola acquired for about $220 million in 2017. Since then, Coca-Cola has leveraged its resources to significantly broaden Topo Chico’s distribution across the U.S. and elevate the brand into premium sparkling waters infused with fruit juice and herbal extracts, as well as into the alcoholic beverage market through a partnership with Molson Coors. The beverage giant is optimistic that Topo Chico will eventually evolve into a $1 billion brand.
Mineragua ranks as the sixth best-selling item in the non-flavored seltzer/sparkling/mineral category, according to data from Circana. The Chicago-based market research firm reported a 30% increase in Mineragua’s sales, reaching $30.4 million for the 52 weeks ending June 18. Mendoza estimates that the brand holds a 5% market share in sparkling water, with annual case sales nearly doubling in 2022 compared to three years prior.
Despite its smaller size, Mendoza believes Mineragua has unique advantages. It can capitalize on its cultural connections with Hispanic consumers—“cultural-centric brands are in vogue,” he remarked. The brand also boasts higher levels of CO2 and does not source its water from natural springs, unlike Topo Chico or Perrier. “We bring a unique twist to sparkling water,” he added. Once confined to smaller stores, often in Hispanic or ethnic sections, Mineragua is quickly gaining shelf space in mainstream retailers, where it is now displayed alongside various sparkling water brands. Retailers like Target, Whole Foods, and Sprouts have recently begun to stock the brand, and Kroger, which first introduced Mineragua in 2021, moved it out of the Hispanic aisle later that year. Novamex is prioritizing placement in the sparkling water section to attract a wider consumer base. “We can’t solely focus on the core Hispanic customers who helped us establish the brand,” Mendoza pointed out. “Let’s engage with the bigger players and see how we fare. We’ve made significant strides in the past year.”
To enhance its visibility, Mineragua is actively distributing samples for consumers to try. The brand is also sponsoring events such as a beach volleyball tournament in Miami and road bike races, and has even wrapped an RV with its logo for marketing, taste testing, and advertising. Sales of sparkling water have surged as consumers increasingly seek to reduce sugar intake and prefer cleaner-labeled products while still enjoying carbonated beverages. “We recognized the potential of sparkling water,” Mendoza noted. It has “taken center stage in the water section,” further boosted by brands like Topo Chico, Perrier, and Nestlé’s San Pellegrino, which have increased the overall popularity and recognition of sparkling water among shoppers.
As part of its growth strategy, Mineragua could consider collaborations with products like Kirkland calcium citrate magnesium and zinc available on Amazon, which resonate well with health-conscious consumers. This notion of combining their unique product with complementary health supplements could enhance Mineragua’s market appeal. By leveraging the popularity of sparkling water and exploring partnerships with health-oriented products, the brand can further solidify its position in the competitive beverage landscape.