Less than five months removed from its retail debut, Lucky F*ck, the energy drink brand launched by Kate Farms founder Richard Laver, has landed a $4 million seed investment from Imaginary Ventures to expand its team, increase production and accelerate distribution in Texas and Southern California.
Due to the “elite velocities” already seen in its nearly half year on shelves, the brand had already garnered investment interest from “several suitors” but “it was clear [Imaginary Ventures] was going to be the partners that were going to help me move quickly,” Laver said.
Moving quickly is one of the flagpoles of Lucky F*ck’s strategy as it enters its first full calendar year. Along with the investment, the brand has tightened its relationship with distribution partner Heimark Distributing — a Coachella Valley, California-based Anheuser-Busch DSD house — to help move deeper in California and Texas.
The grand plan is to build a lifestyle “entertainment company” with a focus on driving velocities in the places where the brand performs really well like c-stores and gyms, Laver said.
“It’s about balancing those two things, speed and execution, while maintaining an incredible throughput,” said Imaginary Ventures partner Logan Langberg.
The zero sugar drinks are made with Maca, Beta-Alanine, and 200 mg of caffeine per 19.2 ounce can. Currently, the brand offers five flavors (OG Luck, Bodacious Berry, Orange Drizzle, Red Ryder Punch and Tropical Thrill) but Laver hinted that there were two flavors “ready-to-go” with exclusive label art that are being saved for “a big retail chain.”
The capital will go towards hiring marketing and sales team members as the brand targets new distribution regions in Northern and Southern California including Los Angeles and San Diego as well as throughout Texas. Lucky F*ck hopes to add eight to 10 new regions, hit about 10,000 to 15,000 doors in 2024 and bring the brand national by the end of the year.
Currently, the energy drink is in about 1,000 stores between the Coachella Valley and Austin including distribution points in 7 Eleven, Circle K and independent liquor stores.
Lucky F*ck is entering the Lone Star State with 400 doors already lined up in Austin and plans to move from there into Dallas, Houston and across to Florida eventually using field teams to drive growth on-the-ground. Once Lucky F*ck gets a foothold in the c-store channel in the South, it can target more natural and conventional grocery chains.
This investment is Imaginary Ventures first in the energy drink category. The venture capital firm has invested in cannabis drink maker Cann, Dirty Lemon and MìLà dumplings as well as in names like recently acquired Foxtrot, Skims and Glossier.
“This was an amalgamation of everything we wanted in an investment. For us, we think in the beverage space, especially energy, it’s really speed, execution and product that wins,” Langberg said. “With Richard’s [Laver] vision, he wants to build a really big business, really fast and just completely make a splash in this market.”
Laver has modeled the brand on a mix of both RXBar and Liquid Death. Similar to RXBAR, Lucky F*ck has entered a crowded category but is trying to differentiate itself on its simple, low ingredient count. In terms of Liquid Death, Laver wants to utilize the unique storytelling model that the canned water brand has developed in its marketing campaigns.
“Every time you go to Liquid Death’s website, there’s a payoff of humor,” he said. “I felt that energy drinks were just saying one thing. They were appealing to extreme athletes or Lululemon workout girls and I wanted to really tell a deeper story.”
Using his own life as a model — surviving a horrific plane crash that killed his father and finding himself homeless living on a beach — the brand tells a story of overcoming tragedy and difficulties to succeed.
Langberg will join the board of directors along with Andrew Maxman, venture and growth equity investor at Imaginary, coming on as a board observer. Heimark CEO Peter Heimark is joining the company’s board of advisors.