Culminating a year of impressive growth, REBBL, makers of adaptogen-fueled herbal elixirs and tonics, announced yesterday the closing of a $10 million investment round led by Boulder Investment Group Reprise (BIGR) that will allow for an expansion of marketing efforts. Zico founder Mark Rampolla’s Powerplant Ventures was also involved, as was John Foraker, president of Annie’s Homegrown, acting as an individual investor.
In a press release, Duane Primozich, managing partner at BIGR and a member of the REBBL board, said, “We’re thrilled by the opportunity to partner with REBBL. It is an exceptional brand with fantastic products, talented and experienced management, and a truly authentic mission.”
The new investment represents another chapter in the rapid ascent of the Berkeley, Calif.-based REBBL, launched in 2013 by former Bossa Nova Superfruit co-founder Palo Hawken. The brand uses adaptogenic “superherbs” such as ashwagandha, turmeric and reishi mushroom as the basis for its line of functional beverages made with coconut milk and sold in 12 oz. plastic bottles. The company introduced a two-SKU line of plant-based protein drinks in March.
REBBL secured its first capital raise outside of friends and family in December 2015, when Powerplant Ventures led a $4 million investment round that also included Primozich as an individual investor.
In the subsequent 12 months, the brand has enjoyed significant growth. According to data from market analysis firm SPINS, REBBL’s certified organic, fair trade and non-GMO elixirs are now available in 2,500 stores across the U.S. The company has more than doubled its revenue this year and closes 2016 as the best selling functional beverage sold in natural grocery stores in the U.S.
Speaking with BevNET, Sheryl O’Loughlin, CEO of REBBL, said that the brand’s strong performance precipitated this next round of funding, which will now allow REBBL to focus on building the company.
“Entrepreneurs are constantly in this dilemma: they need to be focused on their company and support its growth, but at the same time, it’s so important to be outside and raising money in order to fuel that growth,” O’Loughlin said. “It created this dilemma where we truly can’t get back to what we should be doing, which is running the company. So we thought, ‘The company is growing and investing in the business is working, now let’s bring enough money to the table so we can truly focus on running this business.’”
Capital raised last year was directed primarily towards sales and marketing initiatives, but it also allowed REBBL room to explore the market and test ways to best engage consumers. O’Loughlin noted that the protein line, for example, was initially launched in test markets and later moved to national distribution after seeing “phenomenal” velocities that match the rest of its products. The brand also experimented with its messaging on social media, to which O’Loughlin said customer engagement was nearly double what was expected.
“Now we know that we have the right direction in order to be able to invest more money,” she said. “That’s what this round represents: being able to take this business to the next level and knowing what works in the business to drive it.”
Primozich launched BIGR alongside his former Boulder Brands colleague Carole Buyers, who served as senior vice president of investor relations at the company, and Presence Marketing founder Bill Weiland, in January with an initial fund raise of $18 million. In September, the group announced it had reached a total of $56 million.
In an interview with BevNET, Primozich said that, after investing as an individual, he saw REBBL as a good fit with BIGR’s philosophy of investing in brands in the natural and organic space currently generating $1-$15 million in revenue. BIGR’s investment portfolio also includes organic kombucha company Live Beverages, drinkable bone broth brand Bonafide Provisions and Hope Foods.
“I just loved the product, loved the brand and loved the people,” Primozich said, mentioning Not For Sale, a non-profit group focused on the prevention of human trafficking to which REBBL contributes 2.5 percent of all sales. “I couldn’t allow myself to not support this business, both with my dollars and my time. With my investor hat on, it was clearly a fantastic opportunity to support a terrific business.”
Looking ahead, O’Loughlin said the brand will continue building its presence in the natural grocery channel but ultimately has its sights set on entering conventional groceries. Nevertheless, with the product representing what she termed the still-evolving “superherb beverage subset,” curation will be careful, even in the face of expansion.
“I think what’s really important is that the line stays together,” O’Laughlin said when asked how she saw REBBL positioned in conventional supermarkets. REBBL will be launching nationally with Whole Foods, which currently carries the product in eight regions, next year. “This is a line that’s about introducing these super herbs to the market in a way that’s wonderfully indulgent and beautiful, which is what brings customers to it and keeps them.”
“This round of funding will allow us to grow the business significantly,” Primozich added. “Who knows what’s going to happen in the future. We have a view of that, but it’s not really something we’re focused on. We are focused on continuing on doing what’s working for us now, on continuing to make people more aware of the brand and its background.”