Organic lemon water became a non-negotiable part of Yanni Hufnagel’s daily routine when his friend turned him on to a book about the ketogenic diet.
By that time, Hufnagel had a career as the assistant men’s basketball coach for the college teams, including Harvard Crimson, Vanderbilt Commodores, UC Berkeley Golden Bears and Nevada Wolfpack.
One day while in the locker room, Hufnagel had a lightbulb moment. Everyone was drinking flavored antioxidant beverage BAI. He thought to himself — could he take BAI’s flavor profile and apply it to organic lemon water? That was the beginning of Lemon Perfect, an Atlanta beverage startup.
Celebrity support
Three years later, Hufnagel woke up to innumerable and exuberant texts about groundbreaking news for his company — Beyoncé is a fan.
The world-famous pop star posted several photos of her in a red dress the night before. One of them showed her entering the backseat of a limousine with a pink, Lemon Perfect bottle in one of the cup holders.
Now, Beyoncé is also an investor. She and other venture capital firms, including Beechwood Capital, Goat Rodeo Capital, Melitas Ventures, Nns Capital and Trousdale Ventures, participated in a $31 million Series A funding round. Notable NBA athletes and a famous comedian also participated in the round, but the company declined to identify them.
“It was an easy decision to invest in something that not only tastes great and is healthy, but also, and most importantly, allows choosing a healthier lifestyle to be affordable and accessible to everyone.” Beyoncé said in a news release.
Lemon Perfect's growth
The product is flavored lemon water with no sugar or artificial flavors while containing organic lemons, electrolytes from potassium and vitamin C.
The company currently distributes the drinks in 25,000 locations, including at Publix and Target. It plans to reaching 40,000 by the end of the year. Last year, the company quadrupled its revenue from $6 million to $25 million. It aims to reach $60 million by the end of 2022, Hufnagel said.
Funds from the investment will primarily be used for retail programming and promotional support. For example, if a retail chain wants to promote Lemon Perfect with buy one, get one offers, the company will need funds to support that marketing effort.
The recent investment brings Lemon Perfect’s total funding to $42.2 million and its valuation to over $100 million. The company plans to grow its staff from 70 to 90 by the end of the year. The hires will be for field sales and marketing.
Atlanta relocation
Early last year, Lemon Perfect moved its headquarters to Atlanta from a suburb of San Diego, California. Its office is in the Stockyards development in West Midtown, a district booming with new investments and enjoying high job growth. Nike, Airbnb and Ford Motor Co. have all recently announced or planned offices in the area.
Hufnagel moved to Atlanta because of its international airport, local talent, culture, population diversity, low cost of living, low income taxes and warm weather, he said.
“I looked at Austin and Miami, but I just didn't think they had the layers and pieces Atlanta had,” Hufnagel said. “Looking back at that decision, I don’t think we could have made a better one.”
