Smart water bottle maker L'Arc announced this week that it has been acquired by filter manufacturer Brita. Specifically, Brita GmbH, a German company founded in 1966, separated its North/South American division and sold it to Clorox in 1988.
Although Brita GmbH maintains its brand in other parts of the world, it is currently prohibited from selling products under its own brand name in the Americas. Among other things, the acquisition provides the company with a clear re-entry point into its previous market under an existing, if not widely known, brand.
Founded in late 2017, Bay Area-based Larq is best known for its line of smart water bottles that utilize UV lights built into the cap to reduce bacteria that builds up inside dark, damp objects. is known. The company has since expanded to include water pitchers that combine UV light with standard water filtration, in line with what you'd expect from Brita.
“They wanted to expand into North America again on the B2C side,” Larq Founder and CEO Justin Wang told TechCrunch. “Larq provided a natural extension of that geographically. But also, from a premiumization and digital transformation perspective, that business has traditionally been 70-80% offline. We're doing the exact opposite. For us, 70-80% is online.”
Larq's retail footprint is small, with products sold in approximately 1,000 brick-and-mortar stores. Although Brita GmbH does not currently have a presence in the United States, it has both significant international market influence and retail expertise to draw upon. Meanwhile, Larq will spearhead online sales efforts.
Brita US (Clorox) will remain the elephant in this particular room for the foreseeable future, but the company's former parent company is gearing up for an interesting battle. In that battle, you cannot use your company's ubiquitous name.
king But both Larq and its new parent company believe they have an advantage in terms of innovation.
“I think Clorox basically runs its business as a cash cow,” he says. “That's what they're doing. Clorox buys companies, expands their shelf life, and squeezes all the money they can out of it. Germany is relying more on filters and innovation in its business model. I did.”
Larq will maintain its current product portfolio and expand its offerings by combining its technology with Brita. This will likely mean a continued focus on things like app connectivity and hydration tracking.