They say you should invest in what you know and love.
“Well,” you might say, “I love to drink. Does that count?”
Funny you should ask…
Beverages as Startup Investments
Beverage products can make great startup investments — especially now, as a wave of M&A is happening. For example:
- As the Wall Street Journal just reported, upstart beverage company Spindrift is in talks to be acquired for $650 million. Spindrift uses squeezed fruit to make low-calorie seltzer drinks, and low-alcohol hard seltzers.
- Liquid Death, which makes flat and sparkling water sold in eye-catching packaging that resembles beer cans, recently hired Goldman Sachs to take it public. Its most recent valuation was $1.4 billion, double where it was two years ago.
- Last summer, BlueTriton, which owns Poland Spring and Deer Park, paid $4.6 billion for Primo Water, which offers still and sparkling multi-gallon bottled water.
- Also last summer, in a deal worth $4.25 billion, ThaiBev increased its stake in Fraser & Neave, a maker of non-alcoholic beverages including dairy drinks.
- Other recent deals include Keurig Dr Pepper’s acquisition of energy-drink maker Ghost for $1 billion, and Simply Good Foods’ buyout of protein-shake brand Only What You Need, for $280 million.
The beverage market clearly offers significant profit opportunities.
But where, specifically, should you be looking?
“Beer is the Biggest Loser”
For starters, let me tell you where you shouldn’t look: beer.
According to data from the Brewers Association, beer consumption in the U.S. has cratered to its lowest level since the 1970s.
As Bart Watson, chief economist at the Brewers Association, said, “Beer is the biggest loser. There’s so much competition from products that didn’t exist 50 years ago.”
What are consumers drinking instead?
As a recent report from Inc. magazine explained, they’re drinking hard seltzers, as well as a host of beverages with low-or-no alcohol.
As Inc. reported, everything from fruit-flavored hard seltzers to cannabis-infused beverages have “chipped away at beer’s market share for years.”
Furthermore, a “sober curious” movement, embraced by millennials and Gen-Zers, has led to drinkers re-evaluating their relationship with alcohol, sometimes choosing to abstain altogether.
That explains why, last August, the giant brewer Carlsberg acquired soft-drink maker Britvic for $4.23 billion. Simply put, it felt it needed to strengthen its position in non-alcoholic drinks.
It used to be challenging for investors like us to find high-quality start-up investments in the beverage sector.
But thanks to the type of investing that we focus on at Crowdability, now it’s as straightforward as hopping online.
Three Beverage Startups You Can Invest in Today
Here are three startups in the Beverage sector currently raising capital from investors like you, with minimums as low as $100.
NKD Distillery
Nkd is aiming to build a top Non-Alcoholic Spirit Brand.
Its Whiskey, Tequila, and Gin offer full-strength flavor with zero alcohol.
Its whiskey, for example, is a smooth, full-bodied blend of oak, leather, and hints of apple and maple syrup. It’s crafted in Bardstown, Kentucky, the bourbon capital of the world.
With a strong team and a slate of advisors from relevant brands including Red Bull, Nkd has already brought in more than $500,000 in sales, and is sold in nearly 1,000 shops.
Self Care — Self Care by Three Magnets Brewing creates non-alcoholic craft beer.
The company has already won awards, received national press, and established strategic partnerships.
The James Beard Award-winning beverage journalist Jordan Michelman called the company the “Best All Around NA (non-alcoholic) Brewery.”
As he wrote: “Today it’s one of the very best NA breweries in the country, full stop, offering a kaleidoscopic range of beers in every style and flavor, from hazy IPAs to goses and coffee stouts. Its website sports dozens of distinct releases, changing and selling out and updating all the time, like any hype brewery worth its salt. I’ve never had a bad beer from Self Care, but their Citra Circus Cerveza in particular is a triumphant Mexican lager–style beer.”
Hard AF Seltzer – And for those who want some booze, but not a beer, there’s Hard AF Seltzer.
This is a craft Hard Seltzer with 8% ABV, and no carbs, sugars, or gluten.
The company has sold $1.2 million in product in its first 2 years. And now it has distribution in 3,000+ locations, including major chains like H-E-B, Lowe’s Food, and Piggly Wiggly.
But Remember…
Keep in mind:
I’m not recommending that you go and blindly invest in these startups.
These are early-stage ventures, so you need to do substantial research before making an investment decision.
But if you love drinking — and you’d like to invest in what you know and love — these could be a great place to start your search!
Happy Investing!
Please note: Crowdability has no relationship with any of the startups we write about. We’re an independent provider of education and research on startups and alternative investments.
Best Regards,
Founder
Crowdability.com
