ZOA Energy has secured a $10 million line of credit with Gerber Finance for working capital to support continued growth.
The new debt financing, announced on Thursday, is aimed at helping ZOA build off its breakthrough first year on the market. The high-caffeine natural energy drink line, which is backed by co-founder Dwayne “The Rock” Johnson and distributed via Molson Coors, is currently in over 40,000 stores, including major chains like CVS and Target, and is aiming to clear 100,000 locations by the end of this year. Last month, the brand announced the release of two new zero-sugar flavors — White Peach and Tropical Punch — and a 12 oz. can format.
Meanwhile, Gerber Finance brings experience in building better-for-you CPG brands under its Naturally Gerber division, having worked in the past with Humm Kombucha, Stasher, Coola, Honey Stinger, Cerebelly and Om Mushroom Superfood. ZOA is also funded by Juggernaut Capital Partners.
“We chose Gerber Finance because they offer flexible financing, which is invaluable for our new and rapidly growing brand,” said Dwight McCardwell, CFO of ZOA Energy, in a press release. “On top of that, they have deep experience with our capital partner, Juggernaut, and came highly recommended. As a brand looking to bring positive energy to everyone, it’s important to us to have a cohesive team that works well together towards our goal.”
“ZOA Energy aligns with our Naturally Gerber division not only with its high quality, healthy ingredients, but also its mission to be a positive source of energy and help others thrive – we are thrilled to support them in their continued success,” said Jennifer Palmer, CEO of Gerber Finance. “Companies don’t always know that alternative financing can work hand-in-hand with equity investments. We’ve partnered with Juggernaut successfully on many natural products and are proof it is a winning combination with the right partners.”