Independent non-alcoholic spirits brand Lyre’s has completed a seed-plus funding round that valued the brand at over $179m.
The funding crowns Lyre’s as the most valuable independent brand to date in the high growth no and low alcohol spirits category. Since launching just under 24 months ago Lyre’s has become the most widely distributed non-alcoholic spirits brand – now available in 43 countries – generating double-digit monthly revenue growth with annualised sales on course to exceed $62m by the fourth quarter of this year.
“It’s truly exciting to travel through the $179m valuation milestone within two years of trading,” said Mark Livings, Lyre’s Co-Founder and CEO.
“The demand for non-alcoholic drinks and growth in mindful drinking is exploding. The no and low alcohol category already accounts for three per cent of the total beverage market and is projected to grow by 31 per cent by 2024.
“Alcohol consumption is reducing, with millennials drinking 20 per cent less than their parents at the same age, and consumers are making healthier choices across a number of indulgent food and beverage categories without having to compromise on taste and social experiences.”
The latest round of funding is the third for Lyre’s since its inception and sees a number of major institutional investors come on-board, including US-based Morgan Creek Capital Management (early-backers of Alibaba, SpaceX, Lyft, Drizly NinjaVan and Allbirds) and Bitburger Ventures (the investment arm of the German brewing dynasty).
These enterprises join existing investors, DLF Venture, VRD Ventures, SFO GmbH, Maropost Ventures and Döhler Ventures, all of which have followed on or increased positions in this round.
Funds raised will be used to: accelerate geographic expansion, with Lyre’s targeting sales in 60 countries by year-end; build on existing product research and development capabilities; increase product inventory as the global hospitality sector reopens; and further invest in the company’s UK, European and American manufacturing capabilities.
Livings added: “Lyre’s has built a brand in the most challenging of market conditions and as we position the business at the threshold of the hospitality resurgence, our goal is to be ubiquitous in all major markets so that anyone, anywhere can say: ‘make my drink a Lyre’s’.”
Lyre’s has a portfolio of 13 premium non-alcoholic spirits, meaning it is capable of creating 90 per cent of the world’s best-selling cocktails, plus its proprietary production method means Lyre’s can continue to scale and roll-out at pace, making it an attractive proposition for investors.
Mark Yusko, CEO and Founder of Morgan Creek Capital, commented: “Our Consumer Opportunities Fund is excited to be a lead investor in this round of financing for Lyre’s. We targeted a non-alcoholic spirits company as one of our core investments and Lyre’s met our criteria of a world-class management team with great tasting products and a strong brand in high growth mode.
“With a large product range of non-alcoholic spirits and RTD beverages, we believe Lyre’s is well-positioned to capture the tremendous growth in global demand in this category.”
In the two years since its launch Lyre’s has gained global partnerships with the likes of WeightWatchers, as well as listings with more than 20 major retailers, availability in in-flight lounges such as British Airways and United Airways, and permanent menu placements in an increasing number of the world’s Top 50 bars, restaurants and hotels.
These venues include the iconic the current Australian Liquor Industry Awards Bar of the Year, Maybe Sammy, as well as respected culinary groups such as Nobu, Hunter St Hospitality (formerly Rockpool), GrouAtlas in Manhattan, Tippling Club bars in Singapore and even Vegas Casino Hotels, such as The Sahara.
