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An Australian seltzer startup that recently started ranging in close to 100 First Choice Liquor stores has successfully completed a $1 million seed raise backed by industry partners, strategic investors and venue owners, including unnamed "pub groups".
Following in the footsteps of Australian hard seltzer pioneer challenger Fellr, Mick Spencer and Liam Battye launched their "better for you" brewed Gravity Seltzer brand in the summer of 2022, underpinned by having less than 1 per cent sugar content.
In mid-2023 they made headway towards being better for the planet through a deal to plant trees with AirSeed.
When the company struck a breakthrough ranging deal with Coles Group (ASX: COL) and First Choice Liquor in November, Spencer said a tree would be planted for every 10-pack sold through the retailer.
Since the AirSeed partnership was announced, sales of Gravity Drinks Co products - including alcoholic and non-alcoholic beverages - have led to the replanting of more than 127,300 square metres of land.
On its website the company highlighted three projects in NSW last year in Nimmitabel, Bredbo and Cattai Wetlands, with key species being swamp mahogany, Snowy River wattle, blackwood, silver wattle and sweet bursaria.
Other major breakthroughs for the startup, which is based in the NSW South Coast area of Mollymook Beach, have included multiple exclusive stadium deals for its hard seltzer, including one with Accor, allowing the brand to get in front of fans of Taylor Swift, Foo Fighters and the NRL.
Today's announcement also coincides with the promotion of chief financial officer Greg Mitchell, who has previously worked at Coca-Cola, Carlton United Breweries and Australian Vintage (ASX: AVG), as CEO. Gravity will also be assisted in its branding by JOY Agency, another strategic investor.
"Entering 2024 with this momentum is exhilarating. Our recent capital raise, the appointment of Greg Mitchell as CEO, and our collaboration with Joy showcase Gravity's unwavering commitment to revolutionising the beverage industry," says Spencer.
"We're poised to set new benchmarks and redefine the landscape of 'better for you' beverages in Australia."
JOY Agency principal Simon Rush says Gravity has brought a "joyous approach" to the seltzer category, and the team "couldn’t be more excited to see where this ride will take us".
"The opportunity to invest alongside a brilliant bunch of people on a mission to change the way we drink was irresistible," Rush says.
According to estimates from Statista, the hard seltzer market in Australia is projected to generate a revenue of $758.6 million this year, with projected growth of 32.1 per cent next year.
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