VCs continue to pour millions into independent beverage startups • TechCrunch

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After seeing tons From the influx of venture capital investments to independent beverage startups lately, it’s time to take a step back and see if this type of company actually makes sense as a venture investment.

On the other hand, competition for space on grocery store shelves is fierce, overshadowed only by the fact that people are tough. The US Beverage Manufacturing and Packaging Sites Database It contains nearly 2,500 alcoholic and non-alcoholic beverage manufacturers that make everything from beer and sodas to coffee and 10,000 flavors of soda.

In the entire beverage sector, functional beverages have grown over the past five years as consumers have sought better beverages for you. Most have add-ons like vitamins, probiotics and electrolytes and boast lower sugar content and more natural ingredients.

This market is also growing rapidly: Priority Research estimated Global functional beverage market It was valued at $129.3 billion in 2021 and will grow about 9% annually until 2030, when it is expected to be worth $279.4 billion.

These companies usually don’t go public, but often sell to another entity, perhaps a soda conglomerate or even an alcoholic beverage company looking to enter the non-alcoholic field.

Opening a new capital fund

If the amount of capital that goes into this area is any indication, then investing in this sector makes sense. Venture capital firms pumped more than $170 million into operating beverage companies in 2018an increase of $111 million over 2017, according to PitchBook.

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