Startups

Beverage Startups See Money Pour In Following Pandemic Pullback

Ready-to-drink beverage startups are taking advantage of an uptick in venture funding in their sector following a downturn in deals during the worst of the pandemic last year.

Three Spirit, a London-based nonalcoholic cocktail alternative company, is among the latest examples of startups filling up on fresh capital. It raised a $3 million seed round in July to expand growth to the U.S. Its sales more than quadrupled from February to March following a viral TikTok video featuring one of the company’s products.

The seed round was led by CircleUp Growth Partners, the early-stage consumer investment fund of the tech company CircleUp Network Inc. The investment was made out of a $125 million fund raised in 2017.

“I think we’re seeing a ton of innovation in the beverage sector right now,” Karen Howland, a managing director at the fund, said. “[White Claw Hard Seltzer] led the way as far as ready-to-drink, convenient cocktails. Then we saw an absolute surge of additional brands going after that, recognizing that convenience is a real purchase criteria for that consumer.”

According to PitchBook Data Inc., last year marked the first decline in five years in the value of venture-capital deals in the global water and nonalcoholic beverages sector, which includes tea, coffee and nonalcoholic beverages.

Source: https://www.wsj.com/articles/beverage-startups-see-money-pour-in-following-pandemic-pullback-11627988400

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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