Sports drink betting on a ‘smarter sugar’ – CNBC

However, Nth degree enters a crowded shelf space. Market research firm, IbisWorld, reported that powdered drinks, known as “instant drink mixes,” reached $1.3 billion in revenue in 2015, with sports and energy mixes making up a quarter of that revenue.

In addition to powdered drinks, beverages like Gatorade, owned by PepsiCo, and Powerade, owned by Coca Cola, dominate the category.

Alicia Syrett, board member of the New York Angels, was concerned about how Nth Degree would be able to evade direct competition from those major players, who could develop their own low glycemic products.

‘We are the only low glycemic and carbohydrate that promotes fat oxidation,” said Strahm. In addition, he told CNBC that more low glycemic drinks would actually improve the category.

Nth degree would not disclose revenue, but Strahm did tell CNBC the start-up has sold more than 250,000 bottles since launching in 2010 and that he expects to reach profitability by 2017.

Nth Degree launched in 2010, and developed its new line of packaging in 2015. Headquartered in Edison, New Jersey, Nth degree is family funded with $5 million.

–Additional Reporting by CNBC’s Kelly Lin

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