Vive Organic Closed A $13 Million Series B Lead By Monogram Capital
Vive Organic beverage company has closed a $13 million series B funding led by Monogram Capital (because of their focus in the health-positioned CPG category) with Cambridge Companies SPG and PowerPlant Ventures.
Vive Organic’s annual sales have grown 400% on average since its inception in 2015. CEO and co-founder Wyatt Taubman said the Vive Organic team started raising this round in mid-March.
“We’re looking to continue to lead the wellness shot category, and this [funding] helps us further accelerate sales, marketing and product development efforts,” Taubman recently said.
“We’re fortunate to be selective about which investors to work with, and we were looking for relevant expertise and filing any gaps that might exist on the board level,” Taubman added. “We found they were a good fit through our [fundraising] process.”
Jared Stein, Monogram Capital’s co-founder and partner, notes how Vive Organic also provides an “efficacious solution for wellness and comfort” during the global health crisis.
“We started with making sure the product has an emotional resonance,” Stein said, “and more consumers today are looking online for a convenient fulfillment solution, and Vive sets that up incredibly well, [making] it a valuable part of customers’ daily routine.”
“We look for brands that have the potential to be category leaders, and the best metric is velocity on shelves,” he said. “We’re also looking to invest in functional snacks made with clean ingredients … they’re fundamentally real food that is not highly processed.”
Partners at Cambridge Companies SPG, Filipp Chebotarev and Polina Chebotareva, also stressed how Vive Organic has been a leader in the wellness shot sector, “We believe that immunity building behavior and products will occupy the mindshare of consumers of an entire generation and are therefore very bullish on the performance of this investment,” they wrote a joint statement via email.
However, SPINS data showed the skyrocketing growth of the category as its sales increased by 39.6% in the natural channel during the 52 weeks ending July 14, with total sales in conventional, natural, and specialty gourmet channels posting more than $365.6 million.
“We consider a wellness shot to be a concentrated but also fresh dose of powerful herbs contained in a shot, and we are really a first mover in the market,” Taubman said.
“Our shots are typically incremental to drinks like healthy sparking waters, so we often see consumers pick up a kombucha and a Vive shot at the same time.”
In February 2020, the company also added subscription services on its direct-to-consumer site and additionally Vive Organic expanded its portfolio with “energy+focus” and “electro restore” varieties. Vive is currently available in over 8,000 U.S. retailers, including CVS, Target, Whole Foods, and Safeway, as well as e-commerce platforms such as Amazon.
“Subscription services make it much more convenient to deliver [our products] on a regular basis,” Taubman said. “This is definitely something we are seeing a lot of CPG brands invest in to drive recurring customers.”
Vive Organic expects to continue its current growth momentum with a near-term net sales target of $40 million. Taubman said the plan is to finance its own growth with limited outside capital and reach a large scale over the next 10 to 20 years.