Gatorade is launching Gatorade iD, a loyalty membership program designed to capitalize on the way Gen Z consumers approach sports and fitness. This includes trends toward customization and access to items in sports culture that represent new opportunities for the sports drink brand, said Anuj Bhasin, chief brand officer of Gatorade.

The free program is launching by offering members expanded customization options for products such as towels and water bottles sold on Gatorade’s direct-to-consumer channels, along with access to limited-edition product drops that can expand the Gatorade brand well beyond the beverage aisle. The first of these is a DJ Khaled-led collection that includes a Jordan Brand hoodie sweatshirt, a custom-designed Gatorade Gx bottle and a custom-designed towel for $140, available for members only starting Feb. 8. The items bear the logos of Gatorade and DJ Khaled’s “We the Best” branding.

Gatorade is signing up members on its website.

Later this year, members will have access to perks like free shipping on orders, and a points-based rewards program based on purchases (the brand did not share details of this aspect of the program, including how members will collect and remit points). The iD program will also absorb the existing personalization program at Gatorade, known as Gx.

“It’s the beginning of a new evolution for the brand in how we engage with consumers, how we speak to the Gen Z consumer, and how we continue to innovate,” Bhasin said in an interview.

While loyalty reward programs are nothing new for airlines or grocery stores, they are somewhat less common among consumer packaged goods brands. But they have become more important as brands try to establish direct relationships with consumers, rather than relying mostly on wholesalers and retailers. Gatorade’s parent PepsiCo operates Tasty Rewards, a membership program offering games and discounts across the company’s snacks, food and beverage portfolio, including Gatorade. Kellogg’s Family Rewards operates similarly.

What makes Gatorade iD unique is that is rooted in learnings from sports and athletic brands that appeal to Gen Z, Bhasin said.

“What we’ve learned is that our consumers want the opportunity to engage with us more, and our heaviest users want the opportunity to access really unique differentiated items,” he said. “We’ve tested out a few different spaces in terms of what we can reward consumers with. And we’ve seen those ideas and those items move really, really fast and drive a lot of potential for the brand.”

The membership program comes as upstart brands such as the Gen Z-friendly Prime nip at the heels of giants in the sports drink category. Prime, the energy and sports drink brand from Logan Paul, took some share from Gatorade over the summer, if less than other brands in the category, PepsiCo CEO Ramon Laguarta confessed in an October conference call. Laguarta, however, predicted that “we’re going to have a very good 2024 for Gatorade,” citing the company’s distribution muscle and a growing product portfolio that includes on-trend variants like GFit, Gatorlyte, G Zero and the forthcoming Gatorade Water.

More news: 20 brands catching Gen Z’s attention right now

Gx integration

Gatorade has long touted its advances in products and sports science. The iD program represents a different kind of innovation.

“We have been looking at these trends beyond innovating in performance and wellness,” Bhasin said. “We are evolving also, and creating a new evolved digital platform to engage consumers and athletes. This is what Gatorade iD is.”

This is not Gatorade’s first move into personalization. The sports drink brand in 2017 launched the Gx sub-brand, which includes a sweat patch that can be scanned via an app to generate hydration and nutrition tips. Gx Bottles track a user’s liquid intake and are meant to pair with Gx Pods, a Gatorade concentrate meant to be mixed with water.

Gx will live on as the “personalization arm” arm of Gatorade iD, said Bhasin.

Value exchange

While Gatorade currently allows customers to choose from a range of colors and patterns on its bottles and towels, iD members will have further capabilities to upload team logos, or their own designs. This for the first time gives fans and amateur teams the same customization options that Gatorade offers pro athletes, according to Bhasin.

Around 65% of Gen Z consumers are willing to exchange data for better brand experiences and “hyper-customized” offers, Bhasin said. There is value for Gatorade in the swap too.

“As we look to continue to grow our portfolio of products … we want to learn from our consumers what they’re looking for, and what we should be innovating,” Bhasin said. “And by building a direct relationship with our consumers, not only can we have them engage with us, we can help educate them on what’s best for them and how to fuel personalized nutrition.”