J. Darius Bikoff, a self-proclaimed
health nut born on September 21, 1961, first conceived of the idea of vitamin-enhanced water in 1994. According to him, he was feeling "run down" and concerned he was catching a cold, so he took some
Vitamin C and drank some
mineral water. As he consumed the items, he started thinking about the idea of having them together instead of having to take them separately. He founded Energy Brands in May 1996 using his personal savings and contracting with an
aquifer in Connecticut for the base water used. Reflecting on the company's early history, Bikoff notes that it was "very tough" as he struggled with founding the company having no actual experience in beverage manufacturing, beyond working in an
aluminum fabrication factory.
Acquisition by Coca-Cola On May 25, 2007, the company was acquired by
the Coca-Cola Company for $4.1 billion in cash. $1.2 billion of the sales went to the Tata Group for its 30% minority ownership, which Tata agreed to sell. Under the purchase agreement, Energy Brands remains nearly
autonomous as a subsidiary of Coca-Cola, with Coca-Cola primarily operating with a hands-off method, leaving Bikoff and Energy Brands principal operating officers in charge. In discussing the role of Coca-Cola, Bikoff states: "We run independently, we have our own offices. If Coca-Cola don't call me, I don't call them." In the subsequent settlement Pepsi agreed to change its packaging. On January 14, 2009, the
Center for Science in the Public Interest filed a class-action lawsuit against Energy Brands' parent company in the Northern District of California Court. The suit alleges that the marketing of the drink as a "healthful alternative" to soda is deceptive and in violation of
Food and Drug Administration guidelines. The consumer group states that "according to CSPI nutritionists, the 33 grams of sugar in each bottle of Vitaminwater do more to promote obesity, diabetes and other health problems than the vitamins in the drinks do to perform the advertised benefits listed on the bottles". Coca-Cola dismissed the allegations as "ridiculous," on the grounds that "no consumer could reasonably be misled into thinking Vitaminwater was a healthy beverage" and an attempt by the group to increase its readership. In 2011, the
Judicial Panel on Multidistrict Litigation ordered the coordination of different lawsuits against Coca-Cola Co. that alleged it misled the public about the nutritional benefits of Vitaminwater. ==Business model==