Cirkul Closes $30M Series B Led by AF Ventures

This month, beverage technology company Cirkul announced that it has closed a $30 million series B round, led by AF Ventures.

What is Cirkul?

Launched in 2018, Cirkul is a Florida-based brand which markets a proprietary water bottle utilizing an unique cap which slowly adds concentrated flavor cartridges into the water as the consumer sips. The cap also allows the user to control the amount of flavor added in each sip, a customizability option that the company says allows for total personalization. The bottles themselves come in a number of colors, sizes and formats (12, 22 and 32 oz.), including plastic, squeeze and stainless steel. Cirkul also produces over 40 liquid flavor packs, including functional options such as added electrolytes or caffeine.

Bottles range in price from $12 for mini-plastic options up to $35 for 32 oz. stainless steel offerings. Bundles, which include bottles and flavor cartridges range from $30 to $45, and the company also offers monthly subscription plans that stretch from $27 for eight cartridges to $250 for 100, with the ability to mix and match flavors. Additional products, including replacement filters, chill sleeves and replacement lids are also available on Cirkul’s website.

In an email to BevNET, Cirkul co-founder and CEO Garrett Waggoner said the brand is currently only available direct-to-consumer, but did not say whether or not it will explore a brick-and-mortar retail launch. However, he noted the company is profitable and has built a loyal consumer base through digital and social media marketing campaigns, with an emphasis on channels such as TikTok.

Cirkul claims to have served “hundreds of thousands of customers” and its team has expanded to over 200 employees and has opened additional offices, including one in Boston.

What does this funding achieve?

Cirkul previously closed a $6.6 million series A round last year, in which AF Ventures also participated. The new round includes financing from existing investor Siddhi Capital and adds SC.Holdings as well as “several other high net worth, celebrity and family office investors,” the company said.

According to Waggoner, Cirkul had not planned to seek out more outside capital until recently, but a desire to bring on more strategic partners to prepare for broader expansion plans later this year prompted the need to raise more money.

“We had built a great relationship with the AF Team and several of the other investors in this round and felt that it was a great opportunity to bring in strategic partners that could add knowledge, insight, and of course capital to help us continue to execute at a very high level,” Waggoner said via email. “We have some exciting expansion plans that we’ll be able to tell you more about in the coming months, so we felt confident that we could be efficient with the capital.”

Reached by email, AF Ventures managing partner Jordan Gaspar said the firm believed Cirkul is poised for rapid growth and has the ability to play in multiple beverage categories. She noted that Cirkul’s form factor “reduces both single-use plastics and the shipping weight and volume of bottled beverages,” cutting costs for the brand while providing consumers with a better-for-the-planet beverage solution.

“We’re confident the core value proposition of fun, easy, and healthy hydration will continue to drive exponential growth for the brand in the years to come,” she said.

How does Cirkul fit into consumer trends?

Cirkul is not the first company to build its brand around a proprietary bottle with customizable flavor options. In February 2018, PepsiCo launched Drinkfinity, a brand which utilized a reusable bottle called a “Vessel” and sold disposable flavor pods. The announcement came six months prior to the company’s acquisition of SodaStream, another customization play built around home use. At the time, the company said Drinkfinity was a response to consumer data showing a growing demand for self-preparation and provided a portable option, but following a relaunch in late 2019, the brand now appears to have been quietly taken off the market, with the Drinkfinity website and social media channels shut down and listings on Amazon and other online retailers listing all products as unavailable.

PepsiCo does, however, still produce a similar product under the Gatorade banner: Gatorade Gx, which launched in 2017 and also makes use of a liquid flavor pod/bottle cap format.

As Americans seek out on-the-go hydration options, Cirkul may also be tapping into a broader trend among consumers for reusable water bottles. According to Grand View Research, the global reusable water bottle category was valued at $8.38 billion in 2020 with a projected CAGR of 4% from 2021 to 2028. In recent years, reusable water bottles have been adopted by consumers as fashion statements and status symbols, broadcasting personal interests in sustainability and health. Additionally, ready-to-drink brands such as PATH and Proud Source Water have sought to disrupt the single-use bottled water category through reusable aluminum-packaging that requests consumers use the product multiple times before purchasing more.

Waggoner and AF Ventures believe the market for a “personalized drinking experience,” as Gaspar put it, is still ripe. Waggoner pointed to strong repeat sales from its existing consumers as indication of the brand’s momentum, while it is also emphasizing a message around sustainability intended to draw in new consumers. Cirkul’s flavors are also low sugar and the format provides a platform for additional functional innovations and category extensions.

The need for a more efficient form factor for beverage delivery has been obvious for a number of years,” Waggoner told BevNET. “As you point out, some large players have tried to solve this, but the products haven’t stuck. I can’t comment on those products as we’ve been laser focused on our own business, but the enthusiasm we’re seeing from customers who love the efficiency of our technology, the way it enables them to personalize their beverage, and the wide range of delicious flavors we offer has been nothing short of incredible.”