A 40-ounce cup transformed Stanley into a $750 million annual enterprise.

Over the past 110 years, Stanley has been managing well.

The manufacturer's bottles and thermoses kept food and drinks hot or cold for hours, making it a popular choice among outdoorsmen and blue collar workers for their knapsacks and lunchboxes.

The Seattle-based brand, known for its hammertone green products, was experiencing steady growth with an annual revenue of $70 million and appeared set for continued success in the future.

In 2020, a new product emerged and made Stanley a dominant force.

In the past four years, the Stanley Quencher has gained immense popularity worldwide, becoming one of the most sought-after water bottles. With a diverse range of colors and finishes available, the Quencher has significantly boosted Stanley's sales by tapping into a market segment that the company had previously neglected: women.

The Quencher, a product favored by nurses, teachers, and celebrities, has become so popular that Stanley's annual sales are projected to reach $750 million in 2023, according to CNBC Make It's data review.

Stanley utilized the Quencher to transform a century-old enterprise into a prominent brand in hydration.

Early days

The 40-ounce insulated cup, which retails for between $45 and $55, arrived in 2016 with a tapered design that allowed it to slide into a car’s cup holder.

Despite not making much of an impact in its first few years, the Quencher's iconic green bottle remained its best-selling product year after year. Sales were so lackluster that by 2019, Stanley had stopped restocking and marketing the product.

In 2020, Stanley appointed Terence Reilly as its new president. Reilly had previously spent seven years at Crocs, where he spearheaded the strategy that transformed the rubber clogs into a popular shoe.

Upon joining the company, Reilly conducted a listening tour to gather feedback from employees on what was effective and what needed improvement. One employee brought up a group of women in Utah who managed a commerce blog called The Buy Guide.

In 2017, Ashlee LeSueur, cofounder of Buy Guide, bought her first Quencher at a Bed, Bath and Beyond store and was immediately hooked. She started giving it as gifts to her friends and promoting it to her followers.

In 2019, she attempted to persuade Stanley to maintain the production of the Quencher, but the sales figures didn't support her case. As an alternative, Stanley presented her with the option to place a bulk order to sell Quenchers directly to her Buy Guide audience.

LeSueur recounts to CNBC Make It how she felt like she was signing a mortgage when she purchased 5,000 Quenchers. The purchase required every penny in the business account and some personal funds to make it happen, making it a significant risk for the business.

When Reilly took charge, he partnered with The Buy Guide to promote new, exciting colors like Desert Sage and Cream.

My experience at Crocs showed me that the kind of influencer opportunity Stanley needed was just the magic we needed to create the Quencher phenomenon," he says. "And we were right. The Buy Guide proved to be amazing partners and helped us create the Quencher phenomenon.

Since 2020, the Quencher has been the top-selling product for the brand, surpassing the iconic Stanley bottle.

Hydration domination

Sales increased with every new color Stanley introduced, resulting in a more than doubling of revenue from $73 million in 2019 to $194 million in 2021.

In 2022, Stanley launched a revamped Quencher model featuring a sleek design and a variety of new color and finish options. As a result, revenue surged to $402 million, representing a 100% increase from the previous year.

The Quencher's Instagram-friendly pastels helped it be seen as a fashion accessory rather than a utilitarian product. With over 100 color options available, some fans began building collections.

Reilly explains to CNBC Make It that customers want their Quencher to match their style, mood, and preferences.

Chelsea Espejo discovered the Quencher in 2022 and now owns 47 cups. As a gym enthusiast, she attributes the cup's large size to her ability to stay hydrated during her workouts. Additionally, the numerous color options available are a significant plus.

She reveals to CNBC Make It that on days when she has extra time, she searches for the specific color of her shirt to match her Stanleys. She considers Stanleys to be an integral part of her personality and believes that if she doesn't have them or chooses the wrong color, her day doesn't go as planned.

The Quencher cup has gained immense popularity on social media, particularly on TikTok, with the #StanleyTumbler hashtag garnering over 900 million views and featuring in numerous viral videos.

Stanley and Reilly are driving excitement by releasing new colors in limited-edition drops and advertising them on social media, respectively. Stanley is also collaborating with celebrities and brands to promote the Quencher's viral success.

Reilly's experience at Crocs was driven by collaboration and drop culture. He knew that once he had a solid foundation at Stanley and could see the connection to consumers, he was ready for collaborations.

The popularity of the Stanley Quencher has been driven by collaborations. Limited edition colors sell out quickly, and a recent collaboration with Starbucks resulted in a red Quencher being resold on eBay for hundreds of dollars the same day it was released.

Some stores imposed restrictions on the number of Quencher colors a customer could purchase when Target recently introduced new colors.

The resale market is undoubtedly impressive," Reilly remarks. "The presence of signs at top retailers restricting the purchase of Stanleys is a remarkable consideration.

Emily Fahrlander, a collector of quenchers, headed to her Starbucks at five in the morning on the day of the Starbucks collab release, with the goal of obtaining the limited-edition item.

She admits to Make It that she's not typically that adventurous, but since she didn't get the last drop, she decided to wake up early.

While Reilly and the Stanley team still desire some scarcity to maintain excitement about the product, they are constantly working to produce as much of it as possible.

We continue to increase the number of units available each time we drop, as we see the trend and growing waiting lists. However, there are only a limited number of seats in the stadium, and once they are sold out, they are unavailable.

Halo Effect

The demand for Quenchers is still high as Stanley has sold over 10 million cups and it shows no signs of slowing down.

The surge in popularity of The Quencher on social media has positively impacted the rest of Stanley's business. According to Ellyn Briggs, a brands analyst at Morning Consult, a rising tide lifts all ships.

Briggs tells Make It that the Stanley name is being highlighted, increasing consumers' awareness of the brand and improving their perceptions of it.

The Quencher trend has positively impacted the entire Stanley brand, according to Reilly.

Our new products are performing well, and our heritage products have regained their momentum and significance in culture and consumer needs, as he states.

Stanley has become a staple in Espejo's cupboards, with drinking glasses and mugs being used regularly.

When I visit any store, my first glance is always towards the Stanley collection, whether it's the mugs or the Quencher. My love for the Quencher has allowed me to appreciate all of Stanley's products.

Stanley's product line now features aesthetic colors and eye-catching designs, similar to the Quencher's offerings.

The redesign of The Quencher gave us confidence to apply the same aesthetic principles to other categories," says Graham Nearn, design chief at Stanley. "It also gave us the confidence to refine and define our most famous products.

The success of the Quencher was largely due to its new female audience's preference for its colors, but Stanley had been onto something for its first 110 years.

One of the Quencher’s most in-demand new colors? Hammertone green.

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