Canadian beverage maker Cova Soda has closed on $15 million in new funding as it seeks to further fuel U.S. expansion.
The round was led by growth equity fund Vanterra Ventures, a division of New York-based firm Vanterra Capital, which has backed a variety of consumer health brands including Hu, Actual Veggies, Overnight Oats and Daily Harvest.
According to a press release, the round was also backed by a broad span of individual investors, notably Simple Food Ventures and GHOST co-founder Dan Lourenco. Other first-time and returning investors from pro sports and entertainment – The Palm Tree Crew, Diplo, Kygo, The Chainsmokers, Michael Rubin, Jack Eichel, Aaron Ekblad, Miles Teller, Matt Chapman, and JD Martinez – were involved as well.
The new capital will support the introduction of new flavors – Cove has “five or six” new-to-the-category innovations in the pipeline, CEO John MacLellan told us in September – as well as “hiring of key talent.”
Launched in 2016 by brothers John and Ryan MacLellan, Cove Soda has accelerated growth since pivoting focus from kombucha to prebiotic soft drinks in 2023. The Halifax, Nova Scotia-based beverage maker entered the U.S. in 2024, and can be found in over 7,000 retail doors including Sprouts, Whole Foods, Costco and Target. In September, Cove signed a distribution agreement with Keurig Dr Pepper (KDP) Canada to service accounts in the country.
Ellis Fried, Principal at Vanterra Ventures, has joined Cove’s Board of Directors.
“Cove is emblematic of that strategy as it brings the world’s first zero-sugar functional soda to market with delicious, nostalgic flavors, quickly winning over consumers across North America,” Fried said in a statement.
Cove is one of a host of prebiotic CSDs – alongside products from Evolution Fresh, Sparkling Ice, Bloom (Nutrabolt), Coca-Cola, Health-Ade, Suja (Slice) and others – seeking to seize momentum behind the category as created by breakout brands Olipop and Poppi.