Wildwonder Closes $2.1M Seed Round, Moves to Cans

San Francisco-based functional beverage maker Wildwonder announced this week that it has closed a $2.1 million seed round which will fund the brand’s expansion on the West Coast and beyond.

Founded as Tea Crush in 2017 by CEO Rosa Li, Wildwonder rebranded to its current name last year and launched an expanded product line of gut health boosting beverages made with Asian herbal ingredients. Since then, Li said, the brand has started to look beyond local Silicon Valley offices and independent accounts with the goal of eventually becoming a national brand.

“We’ve definitely learned a ton in the last few years transitioning from a more limited approach, only servicing food service and offices in Silicon Valley, to the broader market that has seen large demand for artisanal drinks,” Li said.

Since then the brand has expanded its presence along the West Coast and into the Rocky Mountains and Pacific Northwest regions, with a footprint of over 500 stores including Whole Foods and Sprouts locations. The brand now aims to go deeper in California, with a focus on SoCal, before expanding into the East Coast next year.

According to Li, the new financing was provided by CSA Partners, alongside a number of family offices and angel investors. Li noted CSA’s experience in CPG, which includes investments in brands like Pet Krewe and subscription wine club Bright Cellars, will help Wildwonder navigate the market as it scales across the country.

The round was oversubscribed and Li had initially sought just $1 million, but she found that investors were highly interested in the brand’s functional benefits. Wildwonder has positioned itself as an alternative to kombucha, and Li noted the brand has drawn in consumers polarized by the vinegary taste profile of fermented drinks. As well, the company finds itself rolling out in a market where pre- and probiotic beverages have seen an influx of innovation and rapid sales growth from functional “pop” brands like Olipop, Poppi and Culture Pop, putting it in the middle of a surge for gut health drinks.

“People are becoming more health conscious and we have a more mass market, approachable taste profile compared to what’s currently available,” Li said. “As well, people love to hear our story, they see us as more authentic and retailers are now more focused on brand diversity on retail shelves. So I think we have a very authentic heritage story that differentiates us and investors see all these different aspects and they see the growth we’re showing.”

The financing has allowed Wildwonder to begin growing its full time team, bringing on former GT’s Living Foods sales manager Zac Taylor as senior regional sales manager for the West and marketing manager Anthony Rogers.

In addition to the financing, Wildwonder has also debuted a new look, moving from glass bottles to 12 oz. cans. Previously called a “sparkling superherb infusion” on its front label, the new cans identify the products as Prebiotic + Probiotic Sparkling Drinks and Antioxidant Sparkling Drinks, with additional call outs to gut and immune health.

The current line features Guava Rose, Mango Turmeric and Peach Ginger varieties with added prebiotics and probiotics, as well as Pear Turmeric and Lemon Ginger antioxidant flavors. All products are USDA certified organic. Online the drinks can be purchased for $42 per single flavor 12-pack or $44 for a variety pack. A Matcha Pineapple flavor was discontinued last year.

Li said the change was in large part prompted by growth in ecommerce — which includes both direct-to-consumer and Amazon — with reduced shipping costs being a major motivator. As well, Li noted the new cans are not only more sustainable, but will also help to increase usage and drive repeat purchases.

“We talked to customers who basically said ‘look, it feels wasteful to go through a bunch of glass bottles every day,’” Li said. “So cans are a form factor that are more familiar, or similar to a seltzer and we think this actually increases the use occasion. When it’s in a heavy glass bottle, similar to a kombucha, [you might have] one a day or one every few days. Now, they’re more likely to chug or go through multiple cans.”