Functional beverage maker Tru Inc. has raised $6.5 million in a Series A funding round led by BTomorrow Ventures, an existing investor and the corporate venturing arm of British American Tobacco.
Founded in 2015 by CEO Jack McNamara, a former pro hockey player, and tech entrepreneur Yashwardhan Banthia, Tru initially went to market with a line of 1.69 oz. shots. However, the business was slow to grow, and in December 2020 it shifted focus to a full-sized functional sparkling water line. That pivot proved to be a game changer for the Massachusetts-based startup – earlier that year Tru had received a critical $1.5 million cash infusion necessary to “save” the struggling company.
Since then, Tru has now reported two consecutive years where revenue grew about 120% annually and this new financing is poised to help the brand reach new markets and grow headcount.
“I continue to be impressed by the stellar growth the Tru team have achieved over the past year,” said Lexy Prosszer, founder & investment principal of Btomorrow Ventures, in a press release. “We are excited to continue our great partnership, supporting the brand in this next expansion phase as they look to strengthen their position in the market across the USA.”
BTomorrow had previously participated in Tru’s $3.6 million financing round in 2021, which also included investment from (and a DSD distribution partnership with) fellow Bay State brand Polar Beverages. According to the company, that relationship has now helped Tru to expand its footprint to around 2,000 stores within the grocery and convenience channels, including Market Basket, Harris Teeter, Wegmans, and regional Walmart locations.
Positioning itself as a “carbonated complement to Vitamin Water,” Tru’s portfolio of 12 oz. canned drinks includes Power, Energy, Defend, Focus, Dream, Rescue and Beauty varieties, each made with different vitamin and ingredient blends.
Answering questions via email this week, McNamara said Tru has recently added retail partners like Tops and Discount Drug Mart. The brand is also preparing to launch in ShopRite and Stop & Shop stores next month and an expansion into the New York City market “is imminent.”
Positioning Tru’s full-sized offerings as an enhanced water, McNamara added, has allowed the brand to stand out more within its retail locations.
“Rather than swim against the current, we are following the flow of data which suggests that customers are looking for more benefits in beverages, aluminum packaging in the water set, and less sugar,” McNamara said. “Having executed this with great flavor, we will continue to drive trial in-person via samplings while adding online awareness through social media.”
Since BTomorrow first invested in Tru two years ago, McNamara said the relationship with the venture group has been significant in aiding the company’s strategy across nearly all aspects of the business, providing insight and guidance in manufacturing, sales and marketing. He credited BTomorrow with helping Tru to mature as a business “by transitioning to a data centric approach the maximizes for growth and efficiency.”
Tru is now working to expand its team and intends to bring on a full-time CFO and double its sales force this year, McNamara said; The company currently has nine full time employees and expects to be at 18 by this time next year. Although growing its store count is part of its strategy going forward, the top priority will be on going deeper in existing accounts and increasing individual store velocities.
“We have always taken a balanced approach to allocating capital so that we can continue to elevate every discipline of the business…. [O]ur key to winning this game will be controlled growth with a premium level of customer service that touches every level,” he said.