US-based organic alcoholic beverage producer Flying Embers completed a $20m series C round led by spirits producer Beam Suntory yesterday, as health consciousness making inroads into the alcohol market.
Founded in 2017, Flying Embers produces organic alcoholic beverages such as its Hard Kombucha and Hard Seltzer lines, some of which contain probiotics and botanical adaptogens.
The drinks are intended to offer a healthier alternative to other alcoholic drinks, and the company will use the funding to grow its marketing capability and expand into other alcoholic categories where organic options are not as freely available.
Organic wine alone is projected to grow at a compound annual growth rate of 10.7% between 2020 and 2027, at which point it is expected to reach over $16.6bn globally. It forms part of a wider organic beverage market which is itself set to grow to $47.8bn by 2026.
Flying Embers’ round is on the larger end, relative to rounds closed by other organic alcohol producers in recent years.
Organic whiskey brand Nc’nean secured $2.3m from investors including the Scottish Investment Bank in early 2020 while farm and organic liquor maker Buchanan Craft raised $89,000 in seed funding later that year, according to a securities filing. Drake’s Organic Spirits had received $6.2m in 2019.
Bill Moses, founder and chief executive of Flying Embers, said: “Our total business grew over 93% last year as we focused on expanding our placements in key accounts. Hard Kombucha continues to scale nationally, outperforming general alcohol trends as early adopting markets and retailers have bet big on beyond-beer categories.
“Our organic Hard Seltzers alone have grown by more than 284% this year. Despite what seems to be a category shakeout, consumers continue to seek out sophisticated flavour combinations and quality plant-based ingredients.”
Flying Embers’ latest funding follows a $25m series B round in 2019 featuring Ecosystem Integrity Fund, PowerPlant Ventures, Blueberry Fund and Monogram Capital Partners.
Cash has flowed into the beverage startup market in recent months, with Coca-Cola Company acquiring sports drink brand and portfolio company Bodyarmor, in November 2021 at a valuation of about $6.6bn.
Direct-to-consumer wine brand Boxt had secured $9.35m the month before in an equity and debt round that included alcoholic beverage producer WX Brands.
Photo courtesy of Flying Embers.
