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Issue #9 | March 24, 2025 |
|  | This Round’s On Us
Welcome to this month’s edition of This Round’s On Us - InvestBev’s newsletter, serving you a digest of the latest happenings in adult beverage |
| In this edition: - Industry Highlights - InvestBev in the News: $100M Asset Manager Partnership, $50M Credit Partnership with Lofted Custom Spirits - Portfolio Highlights: Sèchey Interview, Portfolio Company Updates - Industry Insights: State of Beverage Alcohol - Updates from the Team - What’s on the Back Bar |
| | |  | | | | InvestBev’s $100M Partnership with a Global Asset Manager |
|  | We are excited to announce a partnership with a global asset management firm to invest up to $100M in Kentucky Bourbon barrels, strengthening our position in spirits-focused investments.
“This partnership and this capital should signal to the broader spirits community the confidence global investors have in the sector, beyond legacy industry players,” — Brian Rosen, founder at InvestBev. |
| | | InvestBev Credit’s $50M Partnership with Lofted Custom Spirits |
| "Partnering with Lofted Spirits and their customer-centered team helps InvestBev accomplish its core mission to support independent brands in America," said Brian Rosen, General Partner at InvestBev. "Aging inventory represents a significant asset for brands, and this partnership ensures that Lofted's clients have the financial flexibility needed to navigate the ever-evolving spirits landscape. We remain committed to putting at least $50m in credit towards supporting Lofted Spirits customers."
Through this financing arrangement, InvestBev Credit aims to alleviate the financial burden on Lofted Spirit's partners, allowing them to invest in product innovation, marketing, and distribution while maintaining a strong inventory that positions them for the future. |
| | | | Founder Spotlight: Emily Heintz, Sèchey |
|  | | Last week, we had the opportunity to interview Emily Heintz, the founder of portfolio company, Sèchey, a low/no alcohol platform:
Could you share the story behind Sèchey and what you’re excited about? After observing a few years of Dry January, I recognized that our society and culture were shifting their relationship with alcohol. Consumers across generations were seeking consumable celebration products, specifically alcohol-free alternatives so that they could choose their own adventure. This led me to create Sèchey, with the vision of sophisticated destination where “dry-ish” consumers can find great low and no-alcohol options, education, guidance, and explore “the Sephora of low and no-alcohol”. After launching a retail store in 2021 as our laboratory, we were testing with mass retailers within 3 years. Now, in addition to our own branded products available nationwide, we curate complementary brands in our storefront and at select Target locations. We look for brands with sophisticated taste, brands that pop on the shelf, and brands that want to partner with us. This is especially important to counter any negative experiences consumers may have had in the past with the first wave of low/non-alcoholic products. This year, we are excited about bringing “dry-ish” year-round. This category is not only for Dry January and Sober October, but can also be for ‘Back to School’ or emphasized in the fall season to prepare for the holidays.
What are some rapidly growing areas in beverage that you are following? The landscape is evolving, blurring traditional beverage categories with innovations like better-for-you sodas, canned aperitifs, legal cannabis, adaptogens, nootropics, and botanical emulsions. Consumers are seeking functional drinks that replicate the effects of alcohol, offering relaxation and social lubrication without full intoxication. Initially, we assumed our audience would be fully alcohol-free, but in reality, most are looking for moderation and optionality rather than strict abstinence (e.g. “California sober”). To address this demand, our own store now carries a mix of low-alcohol options, THC, and functional beverages to meet diverse preferences and we are paying close attention to evolving consumer buying behaviors.
As a female founder, what unique challenges have you overcome? Historically, women struggle to secure funding, and when they do, there’s often a male co-founder involved. According to pitchbook, 12x more funds are raised when there is a male co-founder as opposed to an all-female founding team. Thus, I’ve had to be especially creative as a solo female founder, leveraging my background in retail, leaning on key advisors and navigating the alcohol and beverage space. I’ve focused on understanding changing consumer preferences and positioning the business as a lifestyle brand. We are currently fundraising to build on our momentum and scale for hypergrowth.
If you are interested about the raise, feel free to reach out directly to Emily. |
| | Additional Portfolio Updates |
| In honor of Women’s History Month, see below for some exciting updates(1) from six of our female-led portfolio companies! L’uva Bella (Fund II, wine), with Marisa Sergi-Schumann as Co-founder and CEO: Increased revenue in its core segment by 19.7%. Siempre Tequila (Fund II, tequila) with Monica Sanita as Co-Founder and Co-CEO: Increased distribution by 66% and entered chains such as Liquor Barn, Binny’s, and Kroger. Nomadica (Fund III, sustainable wine formats) with Kristin Olszewski, Founder and CEO: Wholesale revenue is up 65% year over year and will be in Target’s 2025 spring reset (endcap). Additionally, Founder Kristin Olszewski was named a top 500 female founder by Inc. Thomas Ashbourne Craft Spirits (Fund III, ready-to-drink) with Katrina Stoneking as CEO: Grew sales 6% more than the category, per Nielsen data (13 weeks ending 11/16/2024). Recently aligned with Southern Glazer’s, a leading US distributor. Renais (Fund V, gin), with Emma Watson as Co-Founder: Doubled sales volume with its launch in the US and strong performance in existing 14 countries. Sèchey (Fund V, low and no-alcohol) with Emily Heintz, Founder and CEO: Revenue up 211% in 2024 with the launch of Target store-within-a-store partnership and Target-exclusive product. It was also named in the Foremost 50 as a 2025 breakout challenger brand!
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| | | | State of Beverage Alcohol |
|  | Source: IWSR and Internal InvestBev Insights |
| Despite concerns about the alcohol industry's outlook, its long-term trajectory remains positive. While recent growth has slowed, overall consumer spending on alcohol has increased, even as grocery costs rise. Alcohol’s share of basket spend has grown from 1.80% in 2014 to 1.96% in 2024(1), indicating sustained demand. Historical and projected data from InvestBev and IWSR suggest that premium to ultra-premium price segments, as well as ready-to-drink options, have been key drivers of growth(2). Spirits and beer, in particular, have benefited from consumers trading up to higher-quality products.
Looking ahead, premium+ categories such as imported premium beer, agave-based spirits, premium bourbon, and non-alcoholic options are expected to see continued, albeit moderate, growth. Inventory-to-sales ratios remain stable, slightly above the three-year average but in line with historical trends. As consumption improves, excess inventory should be absorbed, reinforcing the industry’s resilience and long-term potential.
InvestBev’s outlook shaping the beverage alcohol market in 2025 follows four key macro trends:
1. Premiumization in the spirits category: We believe the long-term drivers in spirits are unchanged, including premiumization and share of throat tailwinds from beer to spirits-based offerings. Dark spirits (whiskey, bourbon, dark rum) and premium agave-based spirits will be the beneficiaries.
2. The rise of casual consumption: After years of disruption, the on-trade channel appears to be reviving. There was a 3% year-on-year rise in on-trade consumption(3). Lower alcoholic content drinks like spritzes are driving consumption of liqueurs, aperitifs, sparkling wine and prosecco. RTDs (ready-to-drink) continue to thrive as consumers seek quality, convenience and affordability. Low dose-THC beverages and non-alcoholic beverages are more recent entrants intended to meet the need of the casual consumption occasion.
3. Flavor innovation continues as consumers seek out new, different and exciting flavor combinations inspired by global cuisines. RTDs have been the primary beneficiary of capitalizing on this macro-trend.
4. Health and wellness are driving consumer demand for transparency of ingredients, better for you alternatives, and moderating consumption, whether temporarily abstaining, seeking buzz alternatives such as THC, or zebra-striping between alcohol and no-alcohol consumption to extend the occasion. |
| Source: 1: BWS 166 Press Release January 26, 2025. Referencing Bureau of Economic Analysis, 2024 vs 2014 2: InvestBev and IWSR analysis 3: IWSR BevTrac Study September 2023 vs. September 2024 |
| | M&A Activity Remained Robust |
| M&A activity in the beverage alcohol space remained robust in 2024, with 55 acquisitions(1). The spirits segment remained the most active category with 30 acquisitions, while beer and wine followed with 13 and 12 deals. The buyers were strategic multinationals, independent buyers, and private equity.
The key themes motivating M&A activity in 2024 were:
1. Portfolio optimization and specialization: Ready to drink (RTDs) led with seven unique investments, with other subcategories in agave-based spirits, non-alcoholic beverages, and craft beer seeing interest.
2. Strategic divestment: Industry giants such as Diageo, Molson Coors, and Gallo strategically repositioned their portfolio by divesting non-core assets, creating a favorable environment for smaller industry buyers to acquire strategic assets.
3. Premiumization through focus: The industry continues to seek out M&A activity in the premium+ price segment tiers to align with consumer trends.
Given the M&A activity seen in 2024, InvestBev’s view is that while most strategic multinationals are focusing on investment in their core brands, we expect much of 2025 to focus on efficiency drivers. Once portfolios are right-sized and costs savings materialize, acquisitions will become a focus area in 2026+ as a key lever to drive topline growth. |
| Source: 1: Park Street 2024 M&A Beverage Alcohol Report |
| | | | | Recent Events March 11 2025: Senior Associate, Alli Li, attended Bloomberg’s The Future Investor event, where the Chief Commercial Engagement Officer of Molson Coors spoke about key growth accelerators in adjacent categories.
March 17-19 2025: Managing Partner, Giuseppe Infusino and Senior Associate, Phillip Abbey attended the annual Beam Institute Industry Conference in Lexington, Kentucky.
March 20 2025: InvestBev hosted a tasting panel focused on non-alc and cannabis beverages in our office downtown Chicago. If you are interested in attending future events, please let us know by emailing info@investbev.com. |
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| Upcoming Events March 26 2025: Brian Rosen will be on BeverageDaily’s webinar panel to discuss ‘Innovation in No and Low Alcohol’ sectors. Register here to tune in.
April 8 2025: Giuseppe Infusino will be on a panel at Listen Venture’s So Curious: A Social Beverage Conference in Chicago, where he will discuss financing the future of social beverages. Sèchey founder Emily Heintz and Cann Co-founder Jake Bullock will also be panelists at the conference.
April 29-30 2025: Giuseppe Infusino will be attending the Beverage Forum in Manhattan Beach, California. Let us know if you plan to attend.
May 20 2025: Brian Rosen will be speaking at the 2025 USA Trade Tasting in Chicago. Grab your tickets here.
Team Updates Dan Cook joined the team last month as Vice President of Credit, bringing +10 years of middle-market banking experience at Wells Fargo. Dan has a Finance degree from the University of Notre Dame and completed advanced credit training through Wells Fargo’s Credit Management Training Program in San Francisco. Outside of work, Dan is active with the Cystic Fibrosis Foundation as a sponsor of its annual ‘Aged to Perfection: Bourbon and Bacon’ event. |
| | | | | Add some French flair to your next drink with this Merlot Mule. All you need is your favorite Merlot, ginger beer, and lime juice. Elevate this cocktail by pairing it with a steak and mushroom dinner. For a more casual setting, sip it while enjoying a Charcuterie board. |
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| | | InvestBev aims to be the most sought-after strategic capital partner for high-growth companies in the adult beverage industry. We support adult beverage businesses at every stage of their growth journey. Our team leverages extensive industry experience to help brands achieve success through capital, acceleration, insurance, advisory services, and more.
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