The brand is targeting Southern California, home of Kawhi Leonard.Courtesy of X2 Performance
X2 Performance is aiming to carve out a share of the fitness supplement market after quietly earning the trust of professional athletes in over 20 locker rooms across the NFL, NBA, MLB and NHL over the past decade. The public rollout follows former NFL general manager Mike Tannenbaum investing in, taking a board seat with and helping to land Los Angeles Clippers star Kawhi Leonard as the face of the brand. Now X2 is in the midst of a marketing blitz that includes exclusive deals with CVS, GNC and Subway.
Tannenbaum first discovered the company in 2012 while general manager of the New York Jets, whose players used X2 pre-workout energy shots on game day. The team’s strength and conditioning staff reviewed and approved the product, which had also been certified by inspection organization NSF International. “Having an NSF certification was critical because it’s a third-party validator that everything claimed to be in the product is in the product,” said Tannenbaum. “So many things come across your desk, and this was a product that actually worked, and it really caught my attention.”
The former GM stayed close with the company and its founder, Dr. Ralph Ferrante, over the ensuing years before finally formalizing his involvement in early 2019. And it was Tannenbaum’s relationship with Leonard’s agent that helped open the channels of communication that eventually led the two-time NBA Finals MVP to take an equity stake and two board seats with the company.
Tannenbaum and X2 CEO Mark French are now banking on the factors that made X2 popular with pro athletes — all-natural ingredients, the NSF certification and a patented formula, a rarity in the sports supplement world — to generate demand with retail buyers. “The consumer base is looking for natural solutions,” said French. “Think about people who are actually buying pre-workout supplements, they’re health-conscious consumers.”
An exclusive retail deal with CVS will provide a sizable physical footprint for X2’s products, which also include a canned energy drink. “They have dedicated a full endcap with all of our products,” said French. “And they’re really doubling down in Southern California. It would typically take a startup brand two-plus years to get in the door, but they fast-tracked us to put us in all of Southern California’s coolers.”
Starting next year, X2 will partner with Subway locations in Los Angeles to feature Leonard and X2 signage in windows and on menu boards. X2 products are also available on Amazon and will soon be on GNC’s website.
Tannenbaum and Leonard aren’t the only ones who see a growth opportunity. Private equity firm L Catterton is the brand’s lead investor, and other backers include CAA Sports co-head Mike Levine, O’Melveny partner Chuck Baker and Tampa Bay Buccaneers linebacker Lavonte David.
French declined to disclose financial details, but he has high expectations for the near future. “This is a brand that was really only available for pro athletes in locker rooms as well as online,” said French. “Now with a national distribution … revenues are going to increase here in the next couple months and going into 2021.”
