GNGR Labs is going big, in more ways than one.
With a singular focus on its hero ingredient, the New York-based brand has established its potent 2 oz. ginger juice shots as a staple in city bodegas and independent markets over the past half-decade. Those conditions have provided an ideal setting for innovation (the brand is now up to six shot SKUs) and expansion (last year’s introduction of 12 oz. canned drinks).
Now the brand is set to be supercharged by a low seven-figure investment round led by Gather Ventures and with participation by Bochi Investments, representing GNGR’s first outside money.
With the shots business humming along thanks to “very strong fundamentals,” the bootstrapped brand wasn’t prioritizing growth capital, said Namik Soltan, GNGR’s founder and CEO, on the phone this morning. But partnering with Gather, whose portfolio includes brands like Avec and Beam, will be close-knit, he added, thanks to weekly meetings for the next 18 months.
Bochi Investments’ participation is also “personal,” with principal J.B. Handley (a cofounder at Swander Pace Capital) being a big believer in GNGR’s food-as-wellness proposition, Soltan said.
“We’re thrilled to be involved with a company giving consumers the option to support their immune systems naturally with a great product that looks beautiful on the shelf. We couldn’t be more proud of the association with Namik and his team,” said Handley in a statement.
The capital gives GNGR some gas in the tank, though it is being judicious with the throttle. After selling over 2.5 million shots in New York, the brand is quietly taking a handful of its best-selling flavors to the West Coast (targeting the likes of Erehwon, Bristol Farms and Jimbo’s) via Los Angeles-based distributor H.C. Foods and merchandisers Golden Empire. That also means adding a California-based sales rep to the team. Shots will remain co-packed on the East Coast where they’re sold everywhere from neighborhood markets to chains like ShopRite, Rite Aid, Kings Food Market and Walgreens.
While the shots carry the business, GNGR continues to tweak its 12 oz. drinks, priced at $3.99. After a strong reception for its first flavor, Vitamin C, Soltan is finalizing the formulations for two new SKUs — Lemonaid (teased at Expo East 2023) and Multiberry. The line is distributed in New York exclusively by Dora’s Naturals.
Expansion in product and personnel — the company is searching for a VP of sales and a social media manager — means more responsibility and moving parts for CEO and founder Namik Soltan as he looks to diversify GNGR’s retail presence (about 75% of its total business) into c-stores, food service and other channels.
That being said, has there been pushback or confusion over the company’s brand name? Not enough to shake its focus, per Soltan.
“I think it’s actually a good thing. We can focus on one thing and just become the best ginger-based beverage, that’s how I see it.”