Cove Lands Funding, InvestBev Bets on RTDs 🍸

Welcome back to This Week in CPG, folks. Hope y’all are having a productive week and getting ready for the weekend. Here’s what we’re covering today:

• Cove raises additional funding ♻️

• InvestBev backs Thomas Ashbourne 🍸

• Impact Capital scoops up JUNKLESS 🚫

• Sprecher buys Ooh La Lemin 🍋

• New CCO @ Liquid Death 💀

Cove Lands Additional Funding ♻️

Cove, a Los Angeles-based materials science startup that produces eco-friendly packaging, scored an additional $6M in Series A funding. The round was led by Valor Siren Ventures. Existing investors Lupa Systems and LITANI Ventures (RXBAR co-founder Peter Rahal’s venture vehicle) also participated in the round.

Cove is best known for their plastic-free, biodegradable water bottles that retail at Erewhon Market throughout Los Angeles. Instead of using petroleum-derived plastics that may take hundreds of years to decompose, Cove’s water bottles are comprised of PHA, a naturally occurring biopolymer that’s manufactured at scale via bacterial fermentation.

The PHA that Cove relies on is produced by combining organic food waste with a proprietary strain of bacteria. In short, said bacteria breaks down the organic food waste into fatty acids, which are then placed into massive bioreactors to be converted into biopolymers. The result is a plastic-free, biodegradable, compostable, and non-toxic material that can be molded into water bottles and other packaging vessels.

Now that Cove has proven the viability of its sustainable packaging at retail, they’ll use the additional Series A funding to partner with larger CPG firms and break into new categories beyond beverage. As you can see below, Cove offers sustainable packaging solutions that are ideal for food and beauty products, too.

Fortunately for Cove, some of the limited partners who backed Valor Siren Ventures include Nestle and Starbucks, so Valor can at least open some doors and start some interesting conversations.

More on the fundraise here.

InvestBev Backs Thomas Ashbourne 🍸

Private equity firm InvestBev has made a significant strategic investment in ready-to-drink cocktail brand Thomas Ashbourne Craft Spirits. Founded in 2022 by Cara Kamenev, Thomas Ashbourne is known for partnering with celebrities like Sarah Jessica Parker or Neil Patrick Harris and launching RTD cocktails that fit their public profiles.

With Sarah Jessica Parker, for example, Thomas Ashbourne launched The Perfect Cosmo by SJP. With Neil Patrick Harris, they launched The After Hours Espresso Martini.

Thomas Ashbourne’s partnership approach seems to be paying off. Despite being only 18 months old, the brand has secured distribution at Albertsons, BevMo, Spec’s, Safeway, Vons, and Kroger.

The RTD cocktail category has been on a heater lately. Brown-Forman partnered with Coca-Cola to bring the iconic Jack and Coke back. Pernod Ricard has made multiple bets including acquiring French canned cocktail brand Cockorico, and spending over $100M to purchase RTD manufacturer Ace Beverage Group. Pernod also invested $22M in their first-ever RTD canning line in Arkansas. Additionally, Spirit of Gallo acquired Fishers Island Lemonade in May, and Constellation Brands scooped up Austin Cocktails last April.

Upstart brands beyond Thomas Ashbourne are raising big rounds to compete, too. Canned tequila seltzer brand Onda raised $12.5M last summer, and Flying Embers scored $20M led by Beam Suntory early last year.

It’s a competitive, cutthroat category, but Thomas Ashbourne’s celebrity partnerships and backing from InvestBev give it a fighting chance at becoming a serious player in the space.

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Deals 💰

Mergers & Acquisitions 

• Impact Capital, the family office of serial beverage entrepreneur Mike Repole, has acquired a majority stake in better-for-you snack bar brand JUNKLESS Foods. JUNKLESS launched in 2018 and retails at over 6,000 stores including Walmart. NOSH

• Florida-based Kona Gold Beverage sold better-for-you lemonade brand Ooh La Lemin to Sprecher Brewing Company, a Wisconsin-based craft beer and soda producer. Ooh La Lemin offers both still and sparkling lemonades and retails at Hy-Vee and Walmart. Yahoo Finance

• Cosmetics giant L’Oreal sold organic skincare brand Sanoflore to investment firm Ekkio Capital for an undisclosed sum. L’Oreal acquired Sanoflore in 2006 then sold their manufacturing facility in 2009. Cosmetics Business

• Golden Goose, the very popular Italian luxury footwear brand that’s now owned by Permira, could be going public in the first half of next year. Golden Goose sales hit $289M for the first half of 2023 and they posted a core profit of 34.6% of net revenue. Terrific brand and products. Business of Fashion

Fundraising

• British TV personality Stacey Solomon invested in UK-based haircare brand REHAB. The company was founded in 2022 by Vicky Ellis and Anastasia Tozer and is known for their revitalizing hair capsules and combs/clips ⬇️ Cosmetics Business

• Eden Brew, an Australian startup that produces animal-free dairy products via precision fermentation, secured $24.4M in Series A funding. The round was led by existing investor Main Sequence Ventures. Eden Brew was founded in 2021. Vegconomist

What’s New 🤩

Apparel, Cosmetics, and Wellness

• A really terrific piece on luxury lifestyle brand Flamingo Estate from Phoebe Bain. Worth a read. Ad Age

• Creative director and influencer Lauren Perez launched a Moroccan-inspired haircare brand called Anablue. Beautiful products. They’re currently selling a treatment oil, scalp cleanser, and a hair serum ⬇️ Anablue

• Per an Instagram post, luxury personal care brand Necessaire is launching something new today 👀 Instagram

Food, Beverage, and Alcohol

• Liquid Death just announced a massive new hire in Stephen Ballard. Previously Ballard was SVP of Sales at Mike’s Hard Lemonade Company where he helped quadruple sales to $2B. His official title is Chief Commercial Officer and he’ll be focused on retail strategy and execution. Food Dive

• Philadelphia Cream Cheese collaborated with Milk Bar on a few new item — Red Velvet Bagel Bombs. I can’t tell if I’m in love or revolted ⬇️ Business Wire

• The creators of It’s Always Sunny in Philadelphia — Glenn Howerton, Rob McElhenney, and Charlie Day — officially relaunched their Irish whiskey brand Four Walls. The brand launched some limited edition bottles last year that sold for $999 a pop with all proceeds going to charity. Now the brand is back for good and at a much more attainable price ⬇️ PR Newswire

• Siete Foods launched some gorgeous limited edition packaging to celebrate Latino Heritage Month. Illustrations by Christin Apodaca from El Paso, TX ⬇️ Instagram

Data 🖥️

• Nissin Foods USA, the owner of Cup Noodle and Top Ramen, posted a 21% sales increase for Q1 of fiscal ‘23. Sales of premium brands jumped 28%. Nissin currently owns 42% of the premium instant ramen market in the US. Monster. Food Business News

Distribution News 🚚

• Sustainable baby care brand Freestyle launched their diapers and wipes at Whole Foods Market.

• G.O.A.T. Fuel, the energy drink brand founded by Jerry Rice, launched at 7-Eleven.

• Low-carb baked goods producer BetterBrand launched at Whole Foods Market in the UK.

• Refillable personal care brand Uni is now available at clean beauty retailer Credo.

• Swedish beauty brand MANTLE launched at Selfridges.