Poppin’ bottles: VCs continue to pour millions into independent beverage startups

After seeing a ton of venture capital investment flow into independent beverage startups recently, it was time to take a step back and see if this kind of company actually made sense as a venture investment.

For one, the competition for space on grocery store shelves is fierce, eclipsed only by the fact people are finicky. The U.S. Beverage Manufacturing and Filling Locations Database contains nearly 2,500 alcoholic and nonalcoholic beverage manufacturers making everything from beer and soft drinks to coffee and 10,000 flavors of fizzy water.

Within the whole beverage sector, functional beverages grew in popularity over the past five years as consumers sought out better-for-you drinks. Most of them include add-ins like vitamins, probiotics and electrolytes and boast lower sugar content and more natural ingredients.

This market is also growing fast: Precedence Research estimated the global functional beverages market was valued at $129.3 billion in 2021 and would grow nearly 9% annually through 2030, when it’s forecast to be worth $279.4 billion.

These companies don’t usually go public, but often sell to another entity, perhaps a soda conglomerate or even an alcoholic beverage company looking to get into the nonalcoholic space.

Opening a fresh can of capital

If the amount of capital going into this area is any indication, investment into the sector makes sense. Venture capital firms pumped over $170 million into functional beverage companies in 2018, up $111 million from 2017, according to PitchBook.

Credit belongs to : www.techcrunch.com

You May Also Like

Rocket Lab will attempt to catch an Electron rocket booster with a helicopter again

Rocket Lab is gearing up for a second attempt to catch a rocket booster mid-air using a helicopter, a technique the company is hoping to perfect after a partially successful recovery earlier this year. The mission, playfully dubbed “Catch Me If You Can,” is scheduled to take place no earlier than November 4 from the […]

Rocket Lab will attempt to catch an Electron rocket booster with a helicopter again by Aria Alamalhodaei originally published on TechCrunch

error: Content is protected !!