Full Article Banking on Success — Episode 8: Henry Murray on disrupting the hydration market with waterdrop®

waterdrop® revolutionizes hydration by making water consumption more sustainable, convenient and sugar-free. Instead of shipping heavy, pre-filled beverages, the company offers sugar-free hydration cubes made with natural fruit and plant extracts, vitamins, and, in some flavors caffeine or electrolytes. These cubes are designed to dissolve in water without any special tools. With a portfolio of over 20 flavors, waterdrop® caters to daily hydration, energy needs, and sports applications. By eliminating the need to transport bulky sugar loaded beverages, the company also addresses sustainability concerns.

The idea for waterdrop® originated during a 2015 flight from Singapore to Hong Kong, when Martin Murray and his mother pondered the absence of healthy, portable, sugar-free water enhancers. While pursuing his MBA at INSEAD, Martin developed the concept further and brought his brother Henry, then at Boston Consulting Group, and his friend Christoph, an architect and designer, on board. Despite having no direct background in the beverage industry, the founders’ outsider perspective enabled them to challenge existing norms regarding product format and shelf life. Partnering with a leading German manufacturer of fruit and plant extracts, who co-developed and invested in the concept, waterdrop® launched its first product in 2016. A technology-driven approach—rapid product launches followed by swift feedback collection and improvements—was key to early progress. Early releases faced criticism over taste, dissolution time, and packaging. However, leveraging a direct-to-consumer model through their website and a pop-up store in Vienna provided essential feedback channels, allowing for quick product refinement. As Henry Murray highlighted with a quote from Reed Hoffmann, discomfort with a product’s initial version often signals timely market entry. 

waterdrop®’s unique format—termed “microdrink”—sets it apart from traditional syrups, powders, or bottled beverages. In Europe, slower retail segmentation allowed time to educate buyers and shape shelf placement. In contrast, entry into the U.S. market in 2021 meant immediate exposure in hydration sections alongside powders and syrup systems. American retailers are quick to embrace innovation but demand rapid performance in terms of sales velocity, repeat purchases, and brand strength. The key takeaway: novelty may open doors, but sustained performance keeps them open. 

Community building was integral to waterdrop®’s early growth. The communications team initiated a Facebook 30-day “clean” challenge, encouraging users to substitute sugary drinks with waterdrop®. The success of this initiative led to the formation of the waterdrop®Club, which has now grown to nearly 100,000 members across markets. A dedicated team organizes events, collects feedback, and maintains ongoing dialogue with community members. While most customers are driven by flavor and convenience, a loyal community core enhances resilience and fuels word-of-mouth growth. Murray notes that having 1,000 truly delighted customers can make a brand unstoppable. 

waterdrop® operates 45 branded stores in cities such as Vienna, London, and Berlin. These stores are designed to offer customers the opportunity to experience the brand, discover flavors, and build trust. Adapting to retail environments, the company shifted from a premium 48-cube pack (suitable for online sales but impractical for retail shelves) to a shelf-ready 12-pack. Placement in drugstores and retailers democratized access to the most popular products, meeting consumer needs for convenience and availability. This approach blends direct-to-consumer insights and loyalty, owned retail experiences, and third-party retail reach, reflecting how most consumers prefer to shop for everyday products. 

waterdrop®’s customers range from children to seniors. Social media channels primarily engage younger consumers, while most purchases are made by those aged 35 to 45, with a higher proportion of female buyers. Product preferences are shaped by use case: caffeinated variants for energy during commutes, electrolyte options for sports, and iced teas for daily enjoyment. Although the format inherently supports sustainability by reducing packaging and shipping weight, taste and utility are the primary purchase drivers. Once customers engage, they expect responsible practices and clear corporate purpose. 

waterdrop®’s early funding came from "belief capital," with initial investors backing the team and concept. Early supporters included a BCG partner and their German manufacturing collaborator, who helped anchor both supply and development. Instead of taking the usual venture capital approach that prioritizes quick exits, waterdrop® has brought in shareholders who are committed to long-term growth and creating a new market category. As explained, “We don’t have the typical venture capitalists on our cap table who might pressure us to sell the company. Our partners and investors take a long-term view.” 

Significant investments were made in production, branding, and distribution. Today, waterdrop® is profitable, generating about €150 million in annual revenue and employing over 300 people. With stable cash flows and recurring purchases, structured bank financing now supports the company’s continued expansion. 

Although initial equity investment was international, Vienna played a crucial role by offering access to talent, high quality of life, and support from public agencies and the city itself—such as grants from AWS/Austria Wirtschaftsservice. As an international e-commerce business, waterdrop® capitalized on these local advantages while maintaining global ambitions. Murray emphasizes that successful ventures foster further entrepreneurial activity, attracting capital and confidence, and positioning Vienna as an ideal environment for future innovators. 

waterdrop® recruits individuals driven by purpose and a desire to learn, supplementing the team with specialists as needed. The company culture values pace, flexibility, and thrives in the “constructive chaos” of rapid product cycles. With more than fifty nationalities working in Vienna alone, the team is highly international. As the company scaled, the co-founders’ roles evolved from shared responsibilities to clearly defined ownership and decision-making structures. 

Murray’s advice to aspiring founders is clear: “You have to commit to a time, do it and expect everything to happen in a very different way but you cannot look back so burn the ships and go ahead” 
He advises fully committing and removing fallback options. Building a new category entails navigating significant challenges; having a backup plan may make abandoning the mission too easy.  

For personal balance, Murray relies on family, cycling, and tennis, using scheduled races to drive commitment. His ambassador role with Samsung provides insights into brand partnerships, which in turn shape waterdrop®’s approach to influencers and athletes. 

waterdrop®’s mission remains global: to deepen its hydration ecosystem—including drops, bottles, filtration, and a habit-tracking app—while expanding in Europe, the U.S., and, eventually, Asia-Pacific. The ambition goes beyond joining the beverage industry; waterdrop® aims to transform it by shipping flavor instead of liquid. The story of waterdrop® and Henry Murray serves as a blueprint for building a resilient and innovative consumer brand.