Australian kombucha maker Remedy Drinks has closed a Series B funding round led by L Catterton and Australian investment firm Kin Group during Q4 2022. Remedy International has not disclosed the dollar value of the raise or its total capital raised to-date. The company’s Australian branch is majority-owned by Oceania-based beverage conglomerate Lion Dairy; however, Lion has no affiliation with Remedy’s U.S. arm.
With this cash infusion, the shelf-stable, zero sugar fermented beverage brand plans to drive retail expansion with new and existing partners across the U.S., including Walmart, Wegmans, Costco, Kroger, Target, Albertsons, The Fresh Market and Fresh Thyme, to approximately 10,000 doors this year. The decade-old brand initially launched online in the U.S. in 2020 and is now sold at about 7,000 retail locations across the country.
Alongside the funding news, Remedy announced the hiring of Nathan Schy, a former SVP of Sales Strategy and Growth at KIND Snacks, as its new Chief Customer Officer. In his previous role Schy developed KIND’s go-to-market strategies to continue driving growth following the company’s acquisition by food conglomerate Mars.
Jamie Schwartz, Chief Operating Officer at Remedy Drinks, said Schy’s skill set will help accelerate Remedy’s retail and brand presence in the U.S.
“Schy will lead expansion for the Remedy Drinks portfolio across all trade channels and oversee demand-generation efforts, utilizing his sales and leadership skill set with over two decades of CPG experience,” said Schwartz. “As a seasoned executive in the better-for-you CPG space, Schy is positioned to take Remedy to new heights.”
Traditionally a refrigerated product, shelf-stable kombucha has made gains in recent years as consumers and retailers look for more affordable and convenient formats. According to recent SPINS data, the U.S. shelf-stable canned kombucha category has grown 81% year-over-year and kombucha multipack sales increased 22% in the same period.
Remedy’s full portfolio spans a range of shelf-stable, no sugar beverages including kombucha, sparkling apple cider vinegar (ACV) drinks, ginger beer and gut-friendly energy line, Good Energy. The kombuchas are available for $44.99 per 24-pack while the energy and sparking AVC lines come in 12-packs for $24.99. Remedy’s Ginger Beer is currently listed as out of stock.
“Each can of Remedy offers unique attributes that are disruptive to many of the leading products within Kombucha and other functional beverage categories – shelf-stability, no-sugar, and live active organic cultures while maintaining a fizzing delicious and fruit-inspired taste,” said Schwartz.
The brand also boasts an expansive online presence with availability on platforms such as Imperfect Foods, Misfit Market, Boxed.com, Snack Magic and Hive. While it continues to drive brand awareness across the U.S., Remedy has also launched into non-traditional retail channels including on-the-go airport stores, Carnival Cruise lines and other food and delivery services.
“Beyond traditional grocery, natural and club, Remedy is now the category leader in the U.S. on Amazon and other e-commerce marketplaces due to its shelf-stable positioning and thousands of positive reviews,” said Schwartz. “On a global scale, Remedy Drinks is the #1 market share leader in Australia… has rapidly scaled to become the #1 brand in the U.K., #3 brand in Canada, and fastest-growing Kombucha brand in the U.S., both at retail and online.”
This article has been updated to better reflect the relationship between Remedy International and Lion Dairy in addition to the shelf-stable kombucha category’s overall growth rate.