So Good So You scores US$14.5m to expand US footprint of plant-based functional shots

(Source: So Good So You Instagram)

11 Nov 2020 --- So Good So You, a premium refrigerated health shots player, has raised US$14.5 million in a growth funding round led by Prelude Growth Partners.

The company will use this capital to accelerate growth by expanding its US footprint in-store and through e-commerce.

Moreover, it will develop products that meet increased consumer demand for immunity and other solution-forward offerings across the functional beverage space.

“Consumers have fully embraced the importance of proactively managing their health, and with this new investment, our shots have an opportunity to help more people nationwide,” notes Rita Katona, co-founder and board chair, So Good So You.

Rapid growth for functional beverages
The company’s plant-based functional beverages are cold-pressed with natural ingredients that help improve the health of the body and support everyday needs like immunity, energy, sleep and beauty.

“The wellness shot category is growing exponentially due to consumers’ rising demand for convenient, functional product offerings with clean, plant-based ingredients,” says Neda Daneshzadeh, co-founder and managing partner at Prelude Growth Partners.

“The differentiated taste profile of So Good So You appeals to US consumers who are looking for functional wellness,” Daneshzadeh adds.

The investment gives the wellness company an opportunity to boost its US reach, as immunity concerns are rising among consumers. (Source: So Good So You Instagram)Data from Innova Market Insights has revealed that flavored milk, energy drinks, sports drinks, dairy and fruit-flavored drinks continue to make up the largest share of the functional beverage market.

However, there is also a rise in new areas with functional claims. For example, strong growth has been noted for beverages that address consumer demand for improved bone, heart, brain and immune health, with a CAGR from 2015-2019 of 27 percent, 27 percent, 15 percent and 10 percent, respectively.

So Good So You has been expanding since its founding in 2014 by Rita Katona and her husband, Eric Hall. The company has seen a growth of more than 380 percent in the last 18 months as consumer demand for immune-boosting products continues to rise.

Scaling operations and future growth
Prelude Growth says it partners with high-growth consumer brands and brings operating experience in scaling consumer brands.

Recent investments include Banza, 8Greens and Sol de Janeiro. So Good So You existing investors also contributed to this capital raise.

“Our proprietary consumer research indicates So Good So You resonates deeply with Millennials and has the highest repeat rate in the industry driven by its delicious and nutrition-rich products,” says Daneshzadeh.

“We are happy to support a female-owned business and we look forward to partnering with Rita, Eric and the management team as they continue to launch their innovation pipeline and develop So Good So You into an iconic, powerhouse brand,” she underlines.

Both Daneshzadeh and Prelude Growth Partners co-founder and mana ging partner Alicia Sontag will join the So Good So You board.

Away with microplastics residue
Building on its commitment to sustainability and supporting a healthy planet, this summer So Good So You launched an industry-first packaging innovation, BtrBtl.

BtrBtl looks like a regular bottle but has a proprietary additive that allows it to biodegrade in landfills at an accelerated rate, breaking down in years instead of centuries, without leaving microplastic fragments behind.

So Good So You manufactures all beverages in its 100 percent renewable energy-powered, zero-waste manufacturing facility in Minneapolis.

Each of the brand’s juice shots is made with only certified organic, non-GMO-verified ingredients and includes one billion CFUs of probiotics to support both immune and digestive health.

So Good So You wellness shots are available in more than 4,500 stores in 47 states, including Target, Publix, Sprouts and Safeway.

Functional drinks market proliferation
Earlier this year, plant-based protein products brand Only What You Need announced a growth investment round led by PowerPlant Ventures. The company is using this investment to bolster its growth, as the brand prepares to expand further into the conventional grocery channel next year. Investment details have not been disclosed.

Within the functional beverages space, Zyn is targeting the sports nutrition market with its curcumin-infused functional beverages.

Furthermore, US-based beverage brand Yuno launched a line of “BioTactical Drinks” designed to be mixed and matched to promote energy, focus, memory retention, relaxation and improve sleep.

Edited by Kristiana Lalou

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