Culture POP is riding the new year’s wave of consumer interest in gut-friendly sodas with new investment capital.
The Massachusetts-based soft drink brand, started by Nantucket Nectars co-founder Tom First, raised $21 million of a $26 million round from new investors which include Enlightened Hospitality Investments — the investment arm of restaurateur Danny Meyer — and a private investment by Howard Schultz, according to a SEC Form D.
The additional $5 million “may come in the future from existing investors,” First told BevNET.
“It’s a testament to how well the brand is doing that we had a lot of interest from investors,” he added.
First is no stranger to the industry, of course. After founding Nantucket Nectars in 1989 and exiting the company after it sold to Cadbury Schweppes (now owned by Keurig Dr Pepper), he was an investor and advisor to beverage brands for decades before launching Culture POP in 2020.
The probiotic soda is the latest beverage to raise new capital in 2024, following recent rounds from Sanzo, Odyssey, JuneShine and ROAR Organics in December.
The capital infusion is coming at an opportune time as interest in “gutsy” soft drinks seems to be building. Part of the interest in this category is driven by brands like Culture POP telling the story of a “good-for-you soda.”
Not even a week after fellow gut-healthy soda brand Poppi invested in its “Future of Soda” Super Bowl ad spot, rumors have begun to circulate about it being the target of a possible Coca-Cola acquisition.
This is not the first time there have been murmurings that strategics were eyeing the better-for-you soda category. California-based Olipop has seen sales surge in the last year amidst reports that both Pepsi and Coke have “come knocking.”
For Culture POP, it spent last year building out more of a national presence and its new capital seems to be a testament to that.
Yet, First was cautious about having to raise more capital.
“It’s not what we celebrate,” he said. “We celebrate how well the brand is doing.”