Aplós is targeting new distribution in on- and off-premise locations as well as fund channel diversification of its premium, zero-proof spirits after closing a $5.5 million Series A round.
The Series A led by McCarthy Capital is the functional non-alcoholic brand’s first institutional investment round after raising capital through friends and family and a number of strategic investors from beverage alcohol including Drinks Sherpa co-founders Shilen Patel and Andy Fennell, former Diageo director of innovation Helen Michels and former Pabst Brewing executive Matt Bruhn. The Miami-based brand declined to comment on the total amount raised to-date.
Aplós will use the new funding to grow its distribution network and slowly build consumer trial in restaurants and bars, and with wholesalers.
Currently the brand has two SKUs. The first product, Calme, launched in December 2020 and is infused with CBD, yuzu and calamansi to heighten senses and cater to a “relax and unwind” type of drinking occasion, Fudge said. Arise, Aplós’ second spirit, was released in December 2021 and offers a “buzzier” experience with agave flower, lemon verbena and black sarawak. Both come in 19.4 oz. bottles and retail for $48 online.
Merging their combined experience working in retail marketing for apparel, media and ecommerce, Aplós co-founders David Fudge and Emily Onkey decided they wanted to launch a ”super premium” alcohol-free spirit that would pair functionality with the elegance and indulgence of getting a craft cocktail.
“We really just wanted to create something that we loved ourselves and sort of had everything we love about the drinking experience: the sophistication and complexity, the versatility and the functionality we crave in the moment,” said CEO and co-founder David Fudge. “Something you’d be proud to order at a bar, not ashamed.”
Although McCarthy Capital has made some emerging growth investments in food and beverage the majority of the portfolio is skewed towards real estate with investments in wellness, retail and tech brands.
“As consumers increasingly prioritize health and wellness, Aplós’ innovative approach to crafting functional non-alcoholic spirits offers a unique solution for those seeking an elevated drinking experience without compromising their lifestyle choices,” said Alyssa Anglin, McCarthy Capital senior associate and Aplós board representative.
Aplós initially launched with a discerning eye towards high-end cocktail bars and fine dining establishments, Fudge said. Currently, the brand is found on menus at elevated establishments like the Swan Room at Nine Orchard in New York City, Michelin Star restaurant Nisei in San Francisco and the Space Needle in Seattle.
More recently, it has also started to build out retail distribution. Aplós is currently available in “under 500” retail locations from specialty and natural groceries to “curated” package stores. The brand initially launched on the West Coast and is seeing “traction across the board” in New York, California, Texas and Florida, according to Fudge. Typically, a brand can get consumer awareness and exposure in on-premise placements and then complement that with the right retail presence in that area, he said.
The brand intends to use the new capital to go deeper into its wholesale business which launched at the end of last year. Securing placements on shelf next to its full-alcohol counterparts, Fudge said, means investing in distribution partners and educating retailers.
The brand is tapping into the growing market for nootropic-infused non-alcoholic beverages that seem to have flooded the market in recent years. Although NA spirits is one of the more nascent categories in alcohol-free beverages there has been significant growth with brands like Seedlip and Ritual garnering investment from large alcohol companies like Diageo. In RTDs, brands like Hiyo and Kin Euphorics have built their platforms around functional ingredients in non-alc social drinking. Kin partnered with the Tao Group Hospitality in Los Angeles last year, while Hiyo saw sales increase tenfold this year as it broadens its distribution partnering with KeHE and UNFI in natural retailer locations.
For now, Aplós is focused on the core of its business and driving trial with its current products in new markets, but the brand is planning innovation that will be released in early 2024.
“I think consumers really need to understand how and when you fit in their lives,” Fudge added. “We will not be sort of chasing where the puck is, but where we believe the puck is going based on what our consumers are telling us they want.”