After seeing a ton With the influx of venture capital investment into independent beverage startups recently, it was time to take a step back and see if this type of company made sense as a venture investment.
For a person, the competition for space on the grocery shelves is very strong, only in reality people are very weak. The U.S. Beverage Manufacturing and Bottling Facilities Database contains nearly 2,500 liquor and alcoholic beverage manufacturers, from beer and soft drinks to coffee and 10,000 flavored waters.
In the general beverage sector, functional beverages have grown in popularity over the past five years as consumers seek better-for-you beverages. Most include supplements like vitamins, probiotics and electrolytes and boast low sugar content and more natural ingredients.
This market is also growing rapidly: a preliminary study estimated the global functional drinks market at $129.3 billion in 2021, and is expected to grow by nearly 9% to $279.4 billion by 2030.
These companies usually don’t go public, but are often sold to another entity, perhaps a soda conglomerate or an alcohol company looking to enter the alcohol space.
Opening a new tin capital
If the amount of capital going into this area is any indication, investing in the sector makes sense. Venture capital companies In 2018, more than $170 million was invested in functional beverage companies, up from $111 million in 2017, according to PitchBook.
