Slate Milk closed a $10.5 million funding round that will fuel the brand’s national distribution efforts and support the launch of a new product in coming weeks.
The Series A funding round was led by a private investment from the family office of Boston-based venture capitalists Rob Smith, Jimmy Berylson and Brian Knez (Smith and Knez are also founders of venture firm Castanea Partners which did not contribute to Slate’s financing). Additional capital came from previous investors Riverpark Ventures and Spacestation Investments. The new raise was rounded out by a host of influencers, athletes and food and beverage entrepreneurs.
Launched in 2019 by Manny Lubin and Josh Belinsky as a lactose-free, better-for-you chocolate milk brand positioned to adults, the company raised about $5 million in a 2021 rolling seed round. To date, Slate has raised roughly $16 million.
“If you have something that works in terms of marketing [and] in terms of merchandising, you invest more heavily into it and grow it,” Lubin told BevNET. “We always try to test, learn and grow. Now that we’ve been tested and learned in a lot of different markets, we want to apply it to the rest of the country.”
According to Lubin, Slate has experienced triple-digit growth in all three years of its existence and is expecting that to continue in 2023; it was also recently named as Instacart’s Fastest Growing Emerging Brand of 2022. The brand’s three flavors – Mocha Latte, Dark Chocolate and Classic Chocolate – are expected to be available in around 10,000 retail locations by the end of 2023.
The new capital will support Slate’s ambitions to translate its regional gains into a national grocery presence. Currently, Slate milks are sold in Wegmans, Harris Teeter and Publix as well as select divisions of Whole Foods and Market Basket. The company plans to utilize some of the new capital to grow in the convenience and drug store channels where it has already seen strong demand with its regional distribution in the Northeast in some CVS and 7-Eleven stores.
Slate also wants to focus on getting into more doors on the West Coast and in the South where ecommerce data has shown strong demand, Lubin said.
Lubin explained that the brand has evolved its positioning and is integrating this new perspective to its national growth strategy.
“What we’ve realized in the past year or so, is that we’re a strength and energy brand,” Lubin said. “We sell strength and energy through high protein beverages – both with and without caffeine.”
Slate Milk packs 20 grams of protein per 11 oz. can with zero-added sugar and up to three net carbs. In October, two new flavors – French Vanilla and Vanilla Latte – were added to the existing three-SKU roster. Another new product line is expected to hit the company’s website next week.
“We want to add protein to people’s diets but we don’t want to sell supplements,” Lubin said. “Our vision is [that] everyday foods and drinks that people enjoy can be, and should have an option to be, high in protein without added sugar.”
Slate has leaned into this new focus on being a fitness and health oriented brand with strategic investment in the Series A round from professional athletes like NBA players Duncan Robinson and Terance Mann as well as former Olympian Josh Dixon, Lauren Gibbs and fitness influencers Brian Mazza and Eric Hinman.
The brand’s better-for-you philosophy has also spread to it becoming a Plastic Neutral Certified company. Slate milks are sold in aluminum cans and the company offsets any plastic used in packaging material through rePurpose Global where Slate claims to have annually diverted 13,120 lbs of plastic waste.
The brand would not disclose information regarding its manufacturing structure but Lubin said that it is well-positioned to keep up with supply with the new national push.
“We always ensure that before we present to a potential retail partner, we’re equipped to supply the demand of their customers. In times like these, one of the most important things a young brand can do is be a great partner,” Lubin said.