It was time to take a step back and see if this kind of company actually made sense as a venture investment after seeing a lot of investment flow into independent beverage startup recently.
The competition for space on grocery store shelves is fierce, but only because people are not easy to please. There are over 2,500 alcoholic and non alcoholic beverage manufacturers in the U.S. beverage manufacturing and filling locations database.
Functional beverages have grown in popularity over the last five years as consumers look for better-for-you drinks. Some of them include add-ins like vitamins and have lower sugar content.
The global functional beverages market was estimated by Precedence Research to be worth $129.3 billion in 2021.
These companies don't usually go public, but often sell to another entity, such as a soda conglomerate or alcoholic beverage company looking to get into the non alcoholic space
It makes sense to invest in the sector if the amount of capital going into this area is indicative. According to PitchBook, venture capital firms pumped over $170 million into functional beverage companies in the last year.
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