How KEY Energy Is Reinventing Energy Drinks: Lessons From Two Beverage Industry Veterans
When most people think about launching an energy drink brand, they imagine competing against giants like Red Bull, Monster, and Celsius. What they don't see are the hundreds of product decisions, consumer conversations, retail demos, and strategic pivots required to get a new brand off the ground.
For Key Energy co-founders Karishma Thawani and Dr. Tekla Black, building a beverage brand wasn't about chasing trends. It started with a personal health challenge and a shared belief that consumers deserved a better way to fuel their day.
On this week's episode of Shelf Talks, the founders shared their journey from corporate careers at some of the world's biggest companies to launching one of the most innovative brands in the functional beverage space.
Their story offers valuable lessons for any founder looking to build a product-based business and successfully grow in retail.
A Founder Journey Fueled by Personal Need
Karishma's path to entrepreneurship began while working what many would consider a dream job.
After starting her career at Coca-Cola and later helping launch the Apple Watch at Apple, she found herself constantly traveling internationally and relying on multiple cups of coffee each day just to keep up with the demands of her schedule.
Eventually, the lifestyle caught up with her.
After experiencing health challenges and a caffeine-induced anxiety attack, she was forced to reconsider the way she approached energy and wellness.
Instead of accepting that feeling exhausted was simply part of a successful career, she began searching for a healthier solution.
As Karishma puts it:
"Apple taught me how to build, but my body taught me what to build."
Meanwhile, Tekla was on a parallel journey.
With a doctorate in physics, a background in consulting at McKinsey, and leadership roles at PepsiCo, she had spent years studying performance, nutrition, and consumer behavior.
Her fascination with human health eventually led her to ketones, a fuel source that the body naturally produces and uses for sustained energy.
When the two met while working at a food technology startup, they quickly realized they shared a common mission: helping people perform at their best without sacrificing their health.
Lesson #1: Start With Consumer Research Before Building the Product
One of the biggest mistakes founders make is building a product first and validating demand later.
Karishma and Tekla did the opposite.
Before finalizing their product, they invested heavily in consumer research to answer three important questions:
- Is there a meaningful market for ketone-based energy products?
- What gaps exist within the energy drink category?
- How should the brand position itself to appeal to consumers?
What surprised them most was discovering that awareness of ketones was already much higher than expected.
Many energy drink consumers had heard of ketones and understood their potential benefits, creating an opportunity to bring the ingredient to a broader audience.
For founders, this is an important reminder:
Consumer research isn't just about validating your idea. It's about uncovering insights that can shape your product, positioning, messaging, and growth strategy.
Lesson #2: Product Development Never Really Ends
Creating Key Energy was not a quick process.
The founders spent more than two years and over 100 formulation rounds perfecting the product before launch.
Why so long?
Because taste matters.
In food and beverage, consumers may love your mission and your ingredients, but if the product doesn't taste great, they won't buy it again.
Even after launch, the team continued gathering feedback through retail sampling events.
One recurring piece of feedback centered around stevia.
Although Key Energy used a natural stevia sweetener, many consumers were highly sensitive to its taste and associated it with negative experiences from other products.
Rather than defending their original formula, the founders listened.
They reformulated the product using allulose to improve taste and mouthfeel.
It's a powerful reminder that founder attachment should never outweigh consumer feedback.
The brands that win are often the brands willing to evolve.
Lesson #3: Retail Success Starts on the Ground
Many emerging brands focus heavily on social media and digital marketing.
Key Energy took a different approach.
The founders embraced grassroots retail marketing from day one.
Their strategy focused on three key areas:
1. Retail Demos
The founders believe in showing up personally to sample their product.
Not only do demos drive trial, but they also provide direct access to consumer feedback that no dashboard can replicate.
2. Community Building
Long before community marketing became a popular buzzword, Key Energy was building relationships with:
- Running clubs
- Fitness studios
- Pilates communities
- Recovery centers
- Wellness events
- Music experiences
By becoming part of their target customer's lifestyle, they created authentic awareness around the brand.
3. Strategic Promotions
The team tested various promotional strategies to understand what truly moved product off shelves.
Because they launched in a concentrated geographic region, they could quickly learn what worked and refine their retail playbook.
Lesson #4: Retailers Buy Category Growth, Not Just Products
One of the most valuable insights from the conversation centered around pitching retailers.
Many founders approach buyer meetings focused entirely on their product.
Retail buyers, however, think differently.
Buyers want to know:
- Will this bring new consumers into the category?
- Will it create incremental sales?
- Will it improve category productivity?
- Does it solve an unmet consumer need?
As Tekla explained, your goal is not simply to grow your brand.
Your goal is to grow the retailer's business.
Founders who understand this shift dramatically improve their chances of landing on shelf.
Lesson #5: Persistence Opens Doors
One of Key Energy's first retail wins came with Erewhon.
There was no secret shortcut.
No magic introduction.
Just relentless follow-up, consistent outreach, and a compelling founder story.
The same persistence showed up during fundraising.
The company eventually raised millions in capital, but not before countless conversations with investors.
Karishma compares fundraising to dating.
The right investor isn't simply the one willing to write a check.
It's the one who genuinely believes in the founders, the vision, and the long-term mission of the company.
That's a lesson every founder should remember when evaluating potential partners.
What's Next for Key Energy?
Today, Key Energy continues expanding its retail footprint while staying focused on velocity, community building, and consumer education.
The brand has grown through retailers including Erewhon, Market District, and other premium grocery chains and is now preparing for larger conventional retail opportunities.
Rather than chasing rapid expansion at all costs, the founders remain committed to building a strong foundation market by market.
It's a strategy that many emerging brands could benefit from adopting.
Final Takeaway for Founders
The Key Energy story isn't just about launching a beverage brand.
It's about solving a real problem, listening to consumers, embracing feedback, and building a retail business one relationship at a time.
For founders trying to break into retail, there are several lessons worth remembering:
- Validate demand before building.
- Obsess over product quality.
- Listen to consumer feedback.
- Build community before scale.
- Focus on category growth when pitching buyers.
- Stay persistent even when progress feels slow.
Retail success rarely happens overnight.
But as Karishma and Tekla demonstrate, the brands that combine strong consumer insights with relentless execution are the ones most likely to earn their place on the shelf.
Listen to the full episode on Spotify, Apple Podcasts and You Tube.
Spotify: https://open.spotify.com/episode/1YKn5oIJtnLp7toYsvbIBH?si=WTclvWYhSCaR4o-5Ez9Xxg
Apple Podcasts: https://podcasts.apple.com/us/podcast/shelf-talks/id1773675543?i=1000771652827
You Tube: https://youtu.be/yHDlm_xuciE
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