Non-alcoholic beer-maker Partake Brewing raised $16.5 million in a Series B funding round, the Alberta, Canada-based company announced Monday.
The round was led by California-based investors PowerPlant Partners and Amberstone, as well as existing investors CircleUp Growth Partners (San Francisco), Barrel Ventures (Chicago) and McLean & Associates (Ottawa, Ontario).
The latest funding will be used to continue Partake’s growth in the U.S. and Canada, “specifically by building brand awareness and consumer love,” according to a press release. The company will “expand [its brands’] retail presence” this year, and intends to “reach new geographic markets while expanding distribution across key channels.” Additionally, Partake will expand its regional teams, including adding “key leadership roles.”
The round comes two years after the company raised $4 million in Series A funding, led by CircleUp. Export Development Canada (EDC), Natural Products Canada, McLean & Associates and Barrel Ventures also participated in the round.
While EDC was not named in the Series B funding round, Partake said in the release that the company “continues to work closely with EDC to support its growth as it scales internationally.”
“It has been an incredible journey growing Partake at such an accelerated rate and we are honored to have these investors’ significant support behind us as we further expand on our mission to create a more inclusive drinking culture,” Ted Fleming, Partake founder and CEO, said in the release. “We look forward to the continued growth these investments will allow us to make in the near future.”
Fleming founded Partake in 2017 with the belief that “giving up alcohol shouldn’t mean giving up the social connection that comes with it,” according to the release. The brewery has five core offerings – Blonde, Pale, Red, IPA and Dark/Stout – as well as special offerings, including a limited release Hazy IPA, launched last week. Each Partake beer is 0.3% ABV and 10-30 calories.
Partake entered the U.S. market in December 2020 with distribution in Arizona, Maine, Massachusetts, North Carolina, Oregon, Rhode Island and Washington. In March 2021, the company expanded into 11 additional states – Southern California, Colorado, Connecticut, Eastern Pennsylvania, Maryland, Michigan, New Hampshire, New Jersey, Nevada, Texas, Virginia, and Washington D.C. Its brands are now available in more than 5,000 retail locations across the U.S. through partnerships with Total Wine, Whole Foods, Wegmans, BevMo!, Ralphs, Vons, and Pavilions, as well as through direct-to-consumer shipping nationwide.
In October 2021, Fleming told The Globe and Mail that Partake passed $10 million in total sales in 2020, and projected more than $10 million from Canadian sales alone for 2021. He added that he hopes the company will eventually reach more than $100 million in sales annually.