Lifestyle brand Palm Tree Crew is taking a deeper stake in the beverage business with a new investment into functional CSD maker Cove Soda, bringing along a slate of celebrity partners with them. Terms of the deal were not disclosed.
According to a press release, Palm Tree Crew has “brought on a team of strategic investors” to help with the partnership with Cove, including entertainers and businessmen Chris Rock, Miles Teller, The Chainsmokers, Diplo, Michael Rubin, Ryan Tedder, and Mike Meldman.
Founded in Canada as a kombucha brand in 2016, Cove launched its probiotic soda line in 2022 alongside a rebrand, and it most recently expanded the drinks in the U.S. via Costco stores this Spring. Cove is also available in natural channel retailers such as The Fresh Market and Erewhon.
Cove previously raised $4.5 million in a funding round in 2021 through Canaccord Genuity, with debt financing provided by CIBC and Atlantic Canada Opportunities Agency.
The brand no longer lists any kombucha products on its website, but it has extended the soda line to 12 flavors, including Ice Pop, Dr. Cove and Grapefruit varieties.
Palm Tree Crew – which sells a branded clothing line, hosts music festivals and recently opened its first hotel in Miami – was founded in 2020 by musical artist DJ Kygo and his manager Myles Shear.
According to its website, the investment fund is focused on early stage technology and consumer products businesses, as well as cryptocurrency. Besides Cove, the firm’s food and beverage investment portfolio also includes brands like The Long Drink, Poppi, Fly By Jing, immi and Rob’s Backstage Popcorn.
“The Palm Tree Crew family is all about enjoying life to the fullest, which includes choosing beverages that make us feel our best,” said Shear in the release. “Cove Soda’s innovative drinks align perfectly with that mindset, and we’re excited to bring this offering to our fans and guests across the Palm Tree Crew ecosystem.”
According to the release, Palm Tree Crew intends to expand Cove by selling the brand at its events and hospitality venues, including its music festival in Dana Point, California this upcoming weekend.
“We’re thrilled to join forces with Palm Tree Crew to bring together a shared vision of bold flavors, good vibes, and guilt-free refreshment for the next generation of consumers,” said John MacLellan, co-Founder & CEO of Cove Soda, in a statement.