As part of a process intended to increase diversity within the alcoholic beverage industry, Diageo-backed spirits investment group Distill Ventures has announced the launch of a Pre-Accelerator program dedicated to supporting early stage founders from underrepresented demographic groups.
What is Distill Ventures?
Since launching in 2013, Distill Ventures (DV) has invested over $120 million in more than 15 brands across the beverage alcohol space and beyond. Though the group, an independently operated firm backed by global spirits giant Diageo, has invested in traditional spirits (such as Danish whiskey label Stauning and German distillery Rheinland), it has also ventured into the burgeoning non-alcoholic spirit space through brands like Seedlip and Ritual Zero Proof.
How does the Pre-Accelerator program work?
First, note the name: DV’s new program is a “Pre-Accelerator,” designed to give entrepreneurs a pathway towards securing formal investment from the group. Individuals apply using an online form and the selection process is integrated throughout DV “in a newly redesigned, more expansive search process,” according to managing director Heidi Dillon Otto. By working with advisors and with Diageo’s Inclusion and Diversity teams, Otto said the selection committee incorporates “feedback, learnings and varying perspectives” into the process.
If selected, companies then receive support to work alongside the DV team on three projects designed to establish understanding of key questions — such as identifying consumers or commercial proof points, to name a few. The results of those projects, as well as an overview of the company and its founders, are subsequently reviewed by Diageo; if approved, those companies are formally entered into the pre-accelerator program and receive $250,000 to $500,000. Those successful applicants then work with the team to develop a business plan to pitch to Diageo, with the end result being potentially earning investment as a DV portfolio brand.
“Over the past six months, we’ve had numerous conversations with underrepresented founders – some of whom we’re already working with in our inaugural Pre-Accelerator class, and we look forward to continuing this work over the next 12 months and beyond,” Otto said in a statement. “We recognise that diversity in ownership will fuel broader growth and innovation in our industry and will enable our portfolio to connect with a wider range of cultures and consumers. By bringing new, diverse founders into the world of drinks, we hope to create a ripple effect, in turn empowering them to mentor, hire, and train future drinks entrepreneurs.”
What other commitments has DV made to promoting greater diversity and inclusion in the drinks industry?
Beyond the Pre-Accelerator program, DV has announced several additional components of its campaign to address diversity and inclusion issues. The company is in the midst of a six-month educational program on unconscious bias, and has “broadened its search process” to “bring in a richer variety of founders and brands.”
DV is also running a partnership with Wine & Spirits Recruiting, initially just in the United States, to boost inclusive hiring practices for itself and its portfolio companies. Otto said the company, with which it has a long standing relationship, is currently working alongside DV to redesign its recruitment process to create a more diverse pool of candidates.
Otto noted that the group is in the process of establishing metrics with which it and its portfolio companies can evaluate its progress.
“We’ve committed to a comprehensive upgrade of our recruiting, hiring and training processes all the way down to how a job description is written to be more inclusive,” said Otto in a press release. “We’ll be rolling out a training program to DV employees as well as our portfolio companies this summer.”
Liz Brown, group strategy director at Diageo, added: “We have ambitious 2030 goals and today’s announcement from Distill Ventures supports our commitment to growing a more diverse drinks industry, supporting innovative entrepreneurs and building a sustainable long-term business.”