Lyre’s latest fundraising round values company at $500 million
In this article (5)
Fast-growing non-alcoholic spirits brand Lyre’s, has raised $37 million in a round that values the business at A$500 million less than three years after it launched. The funding round was led by a new investor, D Squared Capital, alongside existing investor, Morgan Creek Capital Management, which has also backed Alibaba, SpaceX, Lyft, and Allbirds). Other previous investors joining the fresh round include DLF Venture, VRD Ventures, and Maropost Ventures.
The Sydney-based business previously raised $16 million in a seed round in September 2020.
Co-founders Mark Livings and Carl Hartmann launched Lyre’s in April 2019 with the goal of creating non-alcoholic versions of the world’s most popular spirits. It now produces 14 non-alcoholic spirits with the distinct flavors of gin, whisky, vermouth, amaretto, absinthe, rum, and others, as well as a range of ready-to-drink pre-mixed non-alcoholic cocktails, from an Amalfi spritz to and rum and cola and G&T.
With around 20% of the population not drinking alcohol, consumption trends heading down among existing drinkers, and an emerging, liberated middle class in Muslim countries looking to have fun and socialize while eschewing alcohol.
CEO Mark Livings said the latest capital injection will be used predominantly for marketing, and create more than 50 new jobs in sales and marketing, production, logistics, finance, and e-commerce.
Lyre’s products are now available in more than 60 countries, up 50% in 2021, including in the Middle East and China. This year also saw the business manufacture its one-millionth bottle, and develop six new product variations including Classico, their first no-alcohol Prosecco-style sparkling which launched to market in early November. The company now has production facilities in the UK, Germany, Australia, and the US.
The drinks startup has also established an R&D division in partnership with beverage technology giant Döhler.
“Co-founders Mark Livings and Carl Hartmann launched Lyre’s in April 2019 with the goal of creating non-alcoholic versions of the world’s most popular spirits.”
Livings said range now covers more than 90% of the world’s best-selling cocktails.
“Millennials and older Gen Zs are drinking less alcohol than any generation before them, but the mindful drinking movement transcends generations and cultural borders. We’re not only growing our business – we’re expanding the whole category, entering territories like the Middle East and Far East virtually uncontested,” he said.
“The pace of growth we’re seeing is exceptional. We sold our first bottle in 2019 and today we’re selling one at least every 30 seconds. On our current trajectory, Lyre’s is set to become the fastest independent beverage brand to reach Unicorn status.”
Off-premise sales of low-alcoholic and non-alcoholic drinks have jumped in 12 months from $291 million to $3.1 billion. In Australia, the category is expected to grow by 16% over four years to 2024.
D Squared Capital Managing Director Daniel Grossman said the company is forging a new path in a critical category.
“The no/low alcohol beverage market is one of the fastest-growing markets in F&B and is showing similar characteristics to plant-based milks, meats, and other mindful consumer categories,” he said.
“Lyre’s leading product, brand, and range of award-winning SKUs have proven that they are the industry leader and we are excited to be backing the best in class company.”
Questions & Answers
Q.What is the total amount of funding Lyre's has secured since its launch?
What is the total amount of funding Lyre's has secured since its launch?
Lyre's has secured a total of $53 million in funding. This includes a $16 million seed round in September 2020 and the recent $37 million round, bringing the total less than three years after launch.
Q.How many countries is Lyre's currently available in, and what recent expansion has it seen?
How many countries is Lyre's currently available in, and what recent expansion has it seen?
Lyre's products are currently available in over 60 countries. This represents a 50% increase in availability during 2021, including expansion into new territories like the Middle East and China.
Q.Which product category did Lyre's introduce in early November?
Which product category did Lyre's introduce in early November?
In early November, Lyre's launched Classico, its first no-alcohol Prosecco-style sparkling beverage. This product is one of six new variations developed this year.
Q.What are the primary uses for the capital injected during the latest funding round?
What are the primary uses for the capital injected during the latest funding round?
The latest capital injection will predominantly be used for marketing efforts. It will also facilitate the creation of over 50 new jobs across sales, marketing, production, logistics, finance, and e-commerce departments.
Reader pulse
Is Lyre's A$500M valuation justified?
16,936 votes so far