Lyre’s, the world’s leading non-alcoholic spirits brand, has completed a $38 million (£20 million) funding round in the UK, valuing the business at $514 million (£270 million) extending its position as the most valuable brand in the no/low alcohol category worldwide.
Founded in 2019, this valuation has been achieved in less than two and a half years of trading, during which time Lyre’s has entered more than 60 countries and secured partnerships with the world’s leading spirits distributors and listings with over 50 major retailers.
Lyre’s was created to replicate the world’s most popular spirits in a non-alcoholic format, each as close to the original premium volume spirit as possible. The Lyre’s expanding portfolio of 14 premium non-alcoholic spirits is capable of crafting 90 percent of the world’s best-selling cocktails and is complemented by a recently launched range of ready-to-drink pre-mixed non-alcoholic 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,” said Mark Livings, Lyre’s co-founder and CEO. “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,” added Livings.
In the last year, global off-premise sales reached $3.1 billion across low-alcoholic and non-alcoholic categories (up from $291 million the previous year)*. Volumes of no/low alcohol in Australia have increased by 2.9 per cent in 2020, with the category expected to grow by 16 per cent from 2020 to 2024. While in the UK, the no/low alcohol category is expected to reach a value of over $1.5 billion in 2025**. Lyre’s continues to outpace the growth of the category, driven by low capex requirements, first mover advantage in multiple international markets, and highly-scalable production methods across the range.
The funding round was led by new investor, D Squared Capital, alongside existing investor, Morgan Creek Capital Management (early backers of Alibaba, SpaceX, Lyft, Drizly NinjaVan and Allbirds). Other early backers increasing positions included DLF Venture, VRD Ventures, and Maropost Ventures.
Funds will be used predominantly for marketing, having established a global footprint of 60 countries, as well as to significantly grow headcount, creating more than 50 new jobs in sales and marketing, production, logistics, finance and e-commerce. Lyre’s will also continue to co-invest with several manufacturing partners to expand production capacity to meet demand across its facilities in the UK, Germany, Australia, and the US. Lyre’s has also established an R&D division in partnership with beverage technology giant Döhler, developing a class-leading new product pipeline and ensuring continued innovation in the sector so that products remain best in class.
“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. 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," said Daniel Grossman, Managing Director of D Squared Capital.
This capital raise marks the culmination of a transformational year for Lyre’s. In 2021 to date, the business has launched in 20 new countries, including hard-to-enter markets such as the Middle East and China, added four new e-commerce stores and 20 major retail listings, manufactured its one millionth bottle, and developed six new product variations including Pink London Spirit, five ready-to-drink beverages, Classico, their first non-alcohol Prosecco style sparkling which launched to market early November and three new products joining the range before the end of the year.
In New Zealand, distribution growth continues to cater for increased demand with key retail partnerships including Countdown, New World, Farro Fresh, Glengarry’s, Liquor Land, Super Liquor and Bottle-O. On premise Lyre’s non-alcoholic drinks can also be found in some of the New Zealand’s leading bars and restaurants including Ahi, Gochu, The Grove, Bozzo, Clipper, Elmos, QT Hotel - Rooftop Bar & Esther Restaurant, 1947, One Tree Grill, The Bavarian, Non Solo Pizza, VT Station, Kong, Casa Publica, Mr Brightside, Austin Club, The Karaka Kitchen, Ma Maison Restaurant and Bar, Terrace Tavern, Cortada Restaurant and Bar, Clink Restaurant and Bar, Botanic, Hali, Boo Radley's, The Last Word, Dux Dine, Cork Bar, The Boat Shed Café and Canyon Brewing.
*Nielsen
**No and Low Alcohol Strategic Study 2021, IWSR Drinks Market Analysis
