Disrupted: $1.5 Trillion Market Up for Grabs

By Matthew Milner, on Wednesday, September 12, 2018

The $1.5 trillion market for alcohol is generally considered to be recession proof.

When things are good, people celebrate with a cocktail…

And when things are bad, they drink away their sorrows.

But now a major new trend is taking hold — and it’s putting the booze industry in jeopardy.

The thing is, instead of standing by helplessly, the world’s largest liquor companies have started fighting back…

And in doing so, they could quickly hand investors like you profits of 958% or more.

Water Fight!

According to IWSR, the leading provider of data about alcoholic beverages, U.S. alcohol consumption in 2017 dropped for a third consecutive year.

The reason for this decline is simple:

Because of surging interest in Health & Wellness, consumers seeking to quench their thirst have moved to healthier alternatives.

For example, sales of carbonated water maker LaCroix have more than doubled since 2013, to nearly $300 million. That explains why shares of LaCroix’s parent company, National Beverage (Nasdaq: FIZZ), have skyrocketed 958% recently, from $12 to $115.

To take advantage of this trend, Pepsi launched a LaCroix competitor called Bubly, and Coca-Cola launched a carbonated version of its Smartwater brand. (In fact, in July, Coke CEO James Quincy told CNBC that consumers’ sustained interest in “healthy, natural and clean beverages” is creating a boom in sparkling water sales.)

This is a major shift in consumer behavior…

The kind of shift that — if you know where to invest — could lead you to a tall glass of profits.

Miracle Market: Turning Wine into Water

You see, as I mentioned earlier, the world’s largest alcohol brands are starting to fight back.

To maintain their control of the beverage industry, they’re embarking on a huge wave of investment and Mergers & Acquisitions (M&A).

In fact, a special report released last week by research company CB Insights revealed the following:

  • AB InBev, the largest brewer in the world (it produces 500 beers including Budweiser, Corona, Stella, and Becks) recently acquired seven non-alcoholic beverage startups.

    This includes Brazilian juice maker Do Ben, energy-drink maker Hiball, and plant-based beverage company Canvas.
  • Diageo, the $23 billion spirits house (it owns everything from Johnnie Walker Scotch to Ketel One vodka) recently invested in several new non-alcoholic companies, including an alcohol-free gin called Seedlip.
  • And now, in order to capture some of the profits of all this activity, professional venture capitalists have started placing bets in this sector, too. In fact, according to research platform Pitchbook, so far this year, VCs have invested a total of $152 million into twenty-six non-alcoholic beverage startups.

    Deals include Spindrift, a maker of sparkling beverages with a splash of juice; Harmless Harvest, which makes coconut water and probiotic drinks; and Rethink Brands, which makes boxed flavored water.

The thing is, you too could position yourself for profits in this fast-growing sector…

You just need to start investing in some of these deals.

The Next LaCroix?

Ready to jump into in?

Here are a few startups currently raising capital from investors like you.

Divinia Water — This is pH balanced, pure, “cellular” water. Lab tested and clinically studied by Nobel Laureates, scientists, and doctors from six universities including UC Davis and Penn State, Divinia is “Deuterium Depleted Water” (DDW). DDW is said to offer health benefits including anti-cancer and anti-aging properties, better sleep, and reduced depression.

Modern Alkeme — This is a “ready-to-drink” beverage incorporating Eastern medicine. It includes 13 “detoxers” like Wakame (a nutrient-rich seaweed that protects against toxins); Milk Thistle (an herb that regenerates liver cells); and Reishi Mushroom (a fungus that can stimulate your immune system).

Enclave Beverage Group (EnBev) — EnBev is creating what it calls a “total beverage company,” with a portfolio of different drinks. Its first product EYE-V is targeting one of the few growing markets for alcohol: music festivals. It’s also introducing a “premium” water brand for consumers who are looking to “differentiate themselves from the masses.”

Good Place To Start

To be clear, I’m not recommending that you run out and invest in these startups.

These are risky early-stage ventures that require substantial investment research.

But if you’re intrigued about exploring this fast-growing sector, these three companies are a good place to start your research.

Happy investing.

Please note: Crowdability has no relationship with any of the companies or platforms we write about. Crowdability is an independent provider of education, information and research on start-ups and alternative investments.

Best Regards,
Matthew Milner



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