Spirits Press Clips: RTD Sparkling Tequila Onda Lands Investment; Industry Reacts to BLM

Sparkling RTD Tequila Drink Onda Secures $1 Million in Funding

New-to-market brand Onda, maker of a line of canned sparkling RTD tequila drinks, has raised over $1.2 million in funding from 25madison and other strategic investors, according to an interview with founder Noah Gray on AlleyWatch.

The line is available in two flavors, Lime and Grapefruit, each featuring blanco tequila mixed with sparkling water and fruit juice. Each 12 oz. can contains 5% ABV, along with 100 calories and zero sugar.

In the interview, Gray described Onda’s business as a “hybrid wholesale and D2C” model. He noted that 25madison, a New York-based VC firm focused on accelerating startup brands, is both “a capital provider and a hands-on execution platform” for Onda.

Next up for the brand, according to Gray, will be to deepen its existing presence in New York while strategizing for its future launch in California. Improving the shipping and delivery experience for online consumers will also be a focus.

“As a result of COVID-19, we had to completely shift our strategy to prioritize e-commerce and a digital-first launch,” Gray told AlleyWatch. “I believe that agility and resourcefulness even more than fresh funding will be what tips the scales.”

Industry Responds to Nationwide Black Lives Matter Protests

An article in The Spirits Business examined how business leaders within the spirits industry have responded to the nationwide protests and social movements sparked by the murder of George Floyd in Minneapolis in May.

As systemic racism and inequality have received increased attention over recent weeks, several brands and entrepreneurs have seized the moment to spark change. Brown-Forman, owner of Jack Daniel’s, announced the “Be Better, Do Better” pledge, which included a list of commitments ranging from educational resources and investments in local communities to emphasizing the story of the label’s first master distiller, Nearest Green, an African-American.

The company also introduced the Nearest & Jack Advancement initiative, a $5 million fund to expand diversity in American whiskey, created in partnership with whiskey brand Uncle Nearest. The Nearest Green School of Distilling, the Leadership Acceleration Program (LAP) for apprenticeships and the Business Incubation Program (BIP) have all been created to provide African-American businesses and entrepreneurs with guidance and resources.

Though established in January, the Black Bourbon Society, an organization aimed at connecting the spirits industry with African-American bourbon drinkers through events, formally announced Diversity Distilled in June. The non-profit consultancy will advise spirits brands on the creation and integration of diversity and inclusion policies, as well as assisting with recruiting, retaining and promoting a diverse group of employees.

As part of its Focus on Minority Founders initiative, Constellation Brands announced a $100 million commitment to support Black and minority-owned alcohol businesses over the next decade. Diageo pledged $20 million for Black communities and business in the form of targeted donations, as well as providing training for business owners and employees and relief aid.

Several spirits corporations — including Brown-Forman, Beam Suntory, Diageo and Pernod Ricard — sought to highlight the need to address online hate speech by pausing paid advertising on social media platforms in July. Going a step further, Pernod Ricard has announced it is working on creating a crowd-sourcing app that will help users identify and report offensive content directly to brands and marketing firms.

“We want to facilitate that process, leveraging our influence to create a more transparent and positive world with an internet that is safe for all,” said Ann Mukherjee, Pernod Ricard North America CEO, to Spirits Business. “Companies like ours can and should play a bigger role in problem solving than just withholding advertising dollars. We want to create a tool that makes it easier for consumers’ voices to be heard when they see hate speech spreading online.”

Drizly Hit With Major Data Breach

Online alcohol delivery platform Drizly was taken for a ride last month, falling victim to cyber theft of customer data including email addresses, birthdays and passwords, according to a report in Forbes.

A representative from Drizly told the website that the stolen passwords were “hashed,” or encrypted, and that “no financial information was compromised.” The data breach was first recognized on July 13.

The attacker, Forbes reported, was ShinyHunters, a prolific hacker who has claimed a total of 386 million records, including sensitive financial information, from 18 major website data breaches this year.

The story noted the data breach is a setback for Drizly during a period in which it has posted record sales, having seen new users increase by 1700% in spring. New customers account for approximately 40% of current orders.

Tech Company Next Century Spirits Lands $6 Million in Funding

Durham, North Carolina’s Next Century Spirits has closed a $6 million funding round led by Blue Hill Group, the company announced last month.

Next Century, founded in 2018, uses patented finishing and filtering technology to create customized spirits for distillers. According to a report on Hypepotamus, the company uses its technology as a “competitive advantage by reducing the time table associated with distilling and aging spirits down from several years to about eight weeks.”

The company is planning to add jobs and more production infrastructure, the story noted. Wolfpack Investor Network and Carolina Angel Network also participated in the raise.

“Our team is elated to secure a funding milestone during this global pandemic; our continued growth and future growth prospects have not gone unnoticed by investors,” said Scott Bolin, CEO of Next Century Spirits, in the announcement.

“I am continually impressed with Next Century’s ability to provide high-quality spirits through its proprietary technology which is uniquely positioned for continued growth in the industry,” said board member Steve Lerner of the Blue Hill Group. “The company has established a foothold in the market as startups and established brands alike look to innovation for a more diverse product portfolio to scale their business.”