Sanzo Raises $1.3 Million in Funding Round

Sanzo, the New York-based maker of a line of Asian-inspired sparkling waters, announced today that it has raised $1.3 million in a funding round poised to help the brand expand its retail footprint.

The round includes investments from Away co-founder Jen Rubio, Adobe Creative Cloud CPO and EVP Scott Belsky and Boba Guys co-founders Andrew Chau and Bin Chen, as well as involvement from institutional firms Outbound Ventures, Mana Ventures, and Soma Capital.

According to Sanzo founder and CEO Sandro Roco, he primarily focused on finding angel investors for the round who would allow him to grow the business at a more comfortable pace. The investors will be able to provide insight into brand strategy and grow the company’s network of potential partners, he said. However, none will be joining the brand’s board of directors.

“This really allows me to build the brand in the way that I think we need to,” Roco said. “It gives me the possibility, especially during the pandemic, to make sound business decisions and not get rushed into over-distribution just to fuel that certain top line goal. Now, obviously, we still want to grow aggressively, but we want to be responsible about how we’re growing the brand.”

Launched last year, Sanzo produces a line of sparkling waters with Asian-inspired flavors including Mango, Calamansi and Lychee. Each product uses real fruit juice, contains no added sugar and is packaged in 12 oz. cans.

While some of the brand’s flavors are unfamiliar to many American consumers, Roco said the brand’s variety sample packs are its best selling items online. He noted that the “lion’s share” of the company’s growth since the onset of the COVID-19 pandemic has come through the ecommerce channel, and the variety pack has been an important driver of trial.

Roco, who is a Filipino American, said he was inspired to create the company after seeing a rise in Asian representation in mainstream culture, specifically citing the popularity of films such as Crazy Rich Asians and K-Pop music, as well as changing demographic trends showing Asian Americans as the fastest growing ethnic group in the U.S. He added that Americans are increasingly embracing Eastern flavors and cuisines, noting that celebrity chefs and TV hosts such as Anthony Bourdain helped introduce non-Asians to new foods and drinks.

“Asian Americans are becoming a force to be reckoned with,” he said. “They’re a population that has not been properly marketed towards.”

The brand is currently available in about 300 retail stores across New York, Los Angeles and Chicago, including Whole Foods Market and PopUp Grocer accounts. The brand is also in By Chloe, a vegan fast casual chain in New York. As well, Sanzo has partnered with Iris Nova, which invested in the company late last year and onboarded it onto its “c-commerce” platform, which allows consumers to order the product via SMS text messaging.

According to Roco, Iris Nova has helped Sanzo to achieve “marquee placements” in retail accounts and that the partnership has particularly been beneficial during the pandemic as the text ordering platform was able to maintain quick delivery times as traditional ecommerce faced weeks-long delays due to the influx of new online shoppers.

“It’s just kind of a testament to [Iris Nova CEO Zak Normandin] and that team, who were working tirelessly to ensure workers were going out safely and getting their folks to the warehouses in a safe condition,” he said. “That kind of customer experience — being able in the middle of a pandemic to still get one or two day shipping out completely uninterrupted — was really huge for building out our ecom bonafides.”

Sanzo has also focused heavily on digital and social media marketing, as well as partnering with Asian American restauranteurs in New York City to promote the brand. Natural food retailers and restaurants, Roco said, have also cross promoted Sanzo online.

Looking forward, Sanzo will use the financing from this current round to support its existing retail accounts and expand its footprint throughout the Northeast region. As well, the company will invest in online marketing campaigns, including through influencers on Instagram and other platforms.

The company is also developing four additional flavors, Roco said, though he noted that, as retailers are “tightening up” their shelf space allocations and the brand has strong sell-through for all of its current products, there is not a timeline for when the new drinks might launch.

“We have the next four flavors in place, including suppliers, but we feel like we can focus on our core line and just build it that way for now,” he said.