Soft drinks challenger Dalston’s has secured an £850k investment from a venture capital firm and brought in a new managing director to lead a new growth push.
Sorven Capital led the new round, and the funding will be used to expand distribution and support increased marketing and in-store activations.
Sally Rose also joined Dalston’s this week as MD. She spent the past two years at vertical farm operator GrowUp, latterly as marketing director, and was previously at Innocent for more than 11 years, as well as working for Sainsbury’s Nectar loyalty scheme.
Dalston’s was founded in 2012 by Duncan O’Brien as Dalston Cola, offering an independent alternative to the big names in the on-trade.
The business rebranded in 2016, launching new flavours and pushing into retail, as fcmg heavyweight Giles Brook joined as an investor.
Brook, the former boss of Vita Coco in Europe and a prominent investor in the food & drink industry, continues to support Dalston’s as a backer and advisor.
“Dalston’s has built a distinct, flavour-led proposition grounded in real ingredients and strong values,” Brook said. “The team has achieved impressive momentum, and with this investment they are well positioned to accelerate their next phase of growth. I’m delighted to continue supporting the brand as it scales.”
Dalston’s has grown from its east London origins to a national supplier with listings with Waitrose, Ocado, Asda, Co-op and Amazon, as well as in cafés and hospitality venues and with wholesalers Bidfood and Brakes.
The business hoped the fresh capital would help it support stronger rate of sale across existing retailer partners and unlocking new distribution opportunities across grocery and foodservice.
“Not a cakewalk to begin with, raising investment for challenger brands has been even more challenging in recent years,” O’Brien said.
“I can’t thank our angel investors enough for believing in Dalston’s from our first brew yard through to where we are now and I’m thrilled we’re now welcoming the significant new investment needed to strengthen and further grow nationwide.”
He added the business was “thrilled” to welcome Rose as MD. “Sally brings a huge amount of fmcg experience and her commercial instinct, leadership and energy make her a fantastic fit for where we’re taking the business next.”
UK-based Sorven Capital also backs RTD cocktail brand Arrowtown Drinks, while the VC firm’s founder Mark Philip-Sorensen was an early-stage investor in personal care brand Wild and meal kit provider Mindful Chef.
“We’ve been impressed by Dalston’s focus, discipline and commitment to doing things properly,” Philip-Sorensen said.
“From real ingredients to commercial execution, the brand has strong traction and a clear opportunity in a category that continues to evolve. We’re excited to back the team and play a role in the next stage of their journey.”
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