Entrepreneur Yanni Hufnagel admits the early days of creating his now-successful Lemon Perfect enhanced water brand were tough—so tough that he called his mom and said, “I don’t know if I can do this.” But his persistence and belief in his product eventually won out—and he’s happy to share how he propelled Lemon Perfect to success.
Hufnagel considered reversing his course. He thought about returning to coaching basketball, as he had done for 10 years (he coached for the Nevada Wolf Pack, California Golden Bears, Vanderbilt Commodores, and Harvard Crimson). What did he know about launching a beverage company? Nothing. And his first investor pitch went terribly.
Despite initial hesitancy, Hufnagel says, “I put one foot in front of the other. Things started happening. Once I was in, there was no turning back.”
In 2017, Hufnagel developed Lemon Perfect, a 5-calorie, zero-sugar lemon-powered water he calls “the magical intersection of good for you and great flavor.” He considers the brand’s story unique and sees Lemon Perfect as a beverage that can help people get and stay healthy.
“There has never been a product created even in the same realm as Lemon Perfect,” Hufnagel proclaimed. “No one ever said, ‘Can we take something made from real fruit and give it the flavor profile that America craves and do it with no sugar?’ I was lucky that we could always tell a great story.”
Since its launch, Lemon Perfect’s flavors have expanded from the Original Lemon formulation to include Strawberry Passion Fruit, Dragon Fruit Mango, Pineapple Coconut, Kiwi Star Fruit, Blueberry Açaí, and Peach Raspberry—with each bottle containing half a squeezed organic lemon. Organic plant-based sweeteners stevia and erythritol enhance Lemon Perfect, which is USDA-certified organic.
The brand is available nationwide at retailers including Publix, Kroger, and Whole Foods. The privately held company is now at a $100 million-plus valuation. Hufnagel thinks he has a product that can reach a $5 billion valuation.
On The Joe Pomp Show podcast, Hufnagel told entrepreneur and investor Joe Pompliano, “I would tell entrepreneurs to make sure what you’re going after can have a big outcome or impact people’s lives. Make sure that you can truly dream big because that will fuel you in the moments of darkness.”
Yanni Hufnagel Tells Entrepreneurs to Believe Their Luck Will Turn
In an interview on BevNET’s weekly Taste Radio podcast, which explores beverage, food, and beer topics, Yanni Hufnagel said that after he came up with the idea for Lemon Perfect, he moved back in with his parents to focus on building the fledgling company. For almost a year, he learned everything possible about the beverage industry.
As Yanni Hufnagel said about entrepreneurship, “The ball has to bounce your way.” It’s a basketball metaphor and an apt one. After initial disappointments, the ball bounced Lemon Perfect’s way. He tells budding entrepreneurs to remember their luck can turn.
“You’ve got to get lucky,” he advised.
Lemon Perfect lucked out early on. A Whole Foods buyer fell for the enhanced water at a trade show. An investor asked his wife her opinion, and she green-lighted the investment based on Lemon Perfect’s taste. By chance, the drink fell into the hands of a key decision-maker at Publix, who was impressed enough to order.
Hufnagel also claims good fortune in making mistakes that didn’t sink the company.
“We’ve been able to dodge the big bullets,” he said. “We’re still playing the game. So much about entrepreneurship is just staying alive, not making the big mistake.”
Yanni Hufnagel Encourages Entrepreneurs to Manage Price and Share
Hufnagel always prioritizes having cash in the bank, stressing that the beverage industry is capital intensive—especially without a big soda brand in the wings.
“You’re just trying to win the street fight without a weapon,” he explained.
Hufnagel also pushed his team to be aggressive with retail programming. Noticeably tagging the product for promotions in grocery stores drives consumers to give it a trial. When Lemon Perfect is on sale—as with a buy one, get one free deal (BOGO)—the team ensures the BOGO displays attract consumers’ attention. One of Lemon Perfect’s best accounts is Publix, where the brand runs six BOGOs each calendar year, bringing the price of Lemon Perfect to just $1 a bottle.
“The American consumer is still shopping price,” Hufnagel declared. “Our barrier to trial is low.”
While he’s concerned with margin structure and unit economics, Hufnagel says it remains a secondary priority. First, he wants people to try the brand. So the company hasn’t raised prices on the drink, which sells for $1.99 because “the psychological barrier, we think, is $2.” Hufnagel consciously compressed Lemon Perfect’s margin story early to reap later financial rewards.
“There’s nothing more important than [market] share—nothing,” Hufnagel stated. “Getting your product in many people’s hands early on is most important.”
He considers what he calls “the four P’s”—product, price, packaging, and people—paramount to winning the beverage game.
“We got that right early on,” he said.
Yanni Hufnagel Hires Uncommon People to Work for Lemon Perfect
Yanni Hufnagel admits that the startup journey isn’t for the common man or woman.
“If you don’t have uncommon DNA and the hunger to disrupt a multibillion-dollar category, it’s not for you,” he said on the Taste Radio podcast.
Being a Lemon Perfect employee begins with a genuine love of the beverage. Hufnagel asks potential employees what they think of the product in every interview.
“If you have a genuine enthusiasm for what’s inside the bottle, if you believe that the liquid is magic, all the puzzle pieces will fall into place,” he said. “But it has to start there.”
Hufnagel says his employees maintain their zeal with a passionate approach to sales. “They kick down every door and fight through adversity.”
Hufnagel uses another basketball metaphor to describe the company’s ethos, which includes asking employees to take “extra shots.” “Extra shots” refer to all efforts to help the company grow that might not be part of an employee’s base responsibilities.
“When I was coaching, our best players were the ones that stayed after practice and got there early,” Hufnagel explained. “It’s what you do in the dark that ultimately comes to light.”
