Happy Drinks Co - formerly Skinny Drinks Group - has provided an update on its current funding round, together with news of the appointment of a Global Brands Director, and a European License agreement with iconic global brand, emoji.
To date, Happy Drinks Co said it has raised a total of £5.75 million from institutions and had two successful raises on the Seedrs platform and it is now seeking to raise up to £7.5 million for 10.99% of the company at a pre-money valuation of £48 million.
Commenting on the fundraise, founder Steve Wilkinson said: “We are at an incredibly exciting time in the development of our business. From a standing start just three years ago, we have established ourselves as a major player in the soft drinks market. We believe that the combination of the growing demand for healthy drinks and the shocking rates of childhood obesity, with currently 33% of 10 to 11-year-olds classified as obese, puts us in a strong position to grow our business significantly.
"We continue to receive the support of our existing shareholders, and with the support of those investing in the current fundraise, we are extremely optimistic for the future as we work towards an IPO next year.”
READ: Skinny Drinks secures deal with Iceland’s leading supermarket
Existing funds have been invested in staff, product development and a £10 million new 45,000 square foot state-of-the-art, automated production facility in the North West, which is currently producing 3.5 million cans per week.
The company said the current funding round is to provide the necessary capital to finance the development plans for 2022 and beyond, which includes the roll-out of several new product ranges within its brand house:
- Skinny Tonic – refreshing the range to give consumers the best choice
- Happy Soda – fruity flavours, full of flavour
- Soda Punks – premium craft soda targeting the 18- to 4-year-old non-alcohol drinkers
- Zero Gravity – natural, clean energy with no drawbacks
- Emoji branded DRNK – natural kids drink
To meet anticipated demand, the company will also use the funds to invest in:
- New bottling line for aluminium bottles with capacity for 80 million bottles per annum
- Additional canning line (at year-end) with capacity for 140 miliion cans per annum
- An automated 29,000 square foot fulfilment hub adjacent to existing factory
Appointment of Global Brand Director
As part of its development plans, Happy Drinks also announced the appointment of Eric Sampers as its Global Brand Director.
The company noted that Sampers spent 16 years as Global Brand Director of Pernod Ricard, one of the major players in the international spirits industry with 18,000 staff and £7.7 billion in revenues. During his time there, the business enjoyed a double and triple-digit growth track record across more than fifty international markets.
Commenting on his appointment, Sampers said: “I am absolutely thrilled to join Ian, Steve, and the rest of the team at Happy Drinks Co. I have been an admirer of their entrepreneurial success for the past two years and I am very excited to join them on their mission to eradicate sugar and artificial sweeteners in soft drinks.”
European License agreement with iconic global brand, emoji
Happy Drinks Co also revealed that it has agreed an exclusive partnership with global brand, emoji, the creator of one the most expressive and influential lifestyle brands in the world, for the launch of its Zero Sugar, Naturally kids drink under the brand DRNK.
Explaining the rationale behind the partnership, Ian Minton, founder of Happy Drinks Co said: “10 billion digital emojis are used daily and are processed by the brain as non-verbal information which, according to scientists at the Massachusetts Institute of Technology, means we interpret them as emotional communications in as little as 13 milliseconds.
"Social media channels all report significant uplift in engagement where digital emojis are used, so this will help us to spread the word on what is possible with our emoji® branded drinks, one of the most significant developments in the fight against childhood obesity.”
Marco Hüsges, CEO of the emoji company added: “We operate a global network of partnerships with the biggest corporations from various industries around the world. Together with our licensees and partners the emoji company permanently develops innovative products and campaigns to spread and to constantly evolve the positive emoji brand image and to simply make people happy all around the globe!
"We are delighted to welcome Happy Drinks Co. to our family because their passion to revolutionise the drinks industry by eliminating the need for sugar and artificial sweeteners certainly fits our shared desire to make people happy!”
Founded by Minton and Wilkinson, the business launched in March 2019 as Skinny Drinks Group with two flavours of Skinny Tonic the first zero sugar, zero-calorie, nothing artificial tonic water.
In addition to the Skinny Tonic range, Happy Drinks Co. also manufactures and supplies tonic water to M&S under their own label and to LIDL with their in-house brand Eden Bay, which is the third biggest selling brand by volume in UK retail.
Contact the author at jon.hopkins@proactiveinvestors.com