KeVita, which markets a fast-growing line of sparkling probiotic beverages, has closed on a new round of investment worth $6 million. Proceeds from the financing will be used to deploy “some new marketing initiatives to even further accelerate” the development of KeVita, CEO Bill Moses said in a statement, which noted that the brand achieved 100 percent year-over-year growth in 2013. Moses also stated that the company will “continue to invest in innovation” and plans to launch new products to the market in the coming months.
The new financing round, the fourth private placement of preferred shares for KeVita, was led by SPK Capital LLC, a Los Angeles-based family office, and included other existing investors in KeVita, including KarpReilly and the Ecosystem Integrity Fund. As with the company’s second round of funding, investment bank Silverwood Partners acted as the exclusive financial advisor to KeVita in the transaction.
KeVita’s certified organic drinks launched in 2010 and quickly grew in natural channel giant Whole Foods and later in Safeway stores, with the company aiming to further develop its retail presence in conventional grocery over the next two years. Michael Burgmaier, Managing Director, Silverwood Partners, pointed to KeVita’s “phenomenal” velocity in natural and distribution growth in grocery and up-and-down-the street retailers, as well as the strength of the brand in a thriving market for probiotic beverages and foods, as being highly attractive to SPK and other investors in the deal.
“It checks all the boxes that you would ever want for a beverage company and a brand,” Burgmaier told BevNET.
SPK, which has diversified holdings in a range of industries, including real estate, health care and technology, has become increasingly interesting in the food and beverage space within the past two years, Burgmaier said.
“This is an outstanding opportunity to partner with an exceptionally strong brand and management team that continues to emerge as an undisputed leader in the space,” Elliot Karathanasis, a partner in SPK, said in a statement.