Hemp and cannabis beverage company Sweet Reason has raised $2.5 million in a seed investment round as it looks to boost brand awareness and expand its sales team.
New York-based venture capital firm Lerer Hippeau led the funding round with participation from RiverPark Ventures, Max Ventures and Subversive Capital, alongside a group of angel investors.
Launched in December 2018, Sweet Reason currently offers a range of CBD-infused sparkling water, available in flavours including grapefruit, cucumber mint, and strawberry lavender.
Each 12oz bottle contains no sugar, sweeteners, sodium, carbohydrates or artificial ingredients – and retails for $5.99.
Sweet Reason said the products have been formulated for consumers “to experience the health benefits of CBD without the detrimental effects of sugar”.
Founder and CEO Hilary McCain drew upon her experience at the Boston Consulting Group, Maple Leaf Foods, Chobani and Harvard Business School to create the brand.
“Sweet Reason’s mission is to be the leading hemp and cannabis beverage company in North America. We are thrilled to have completed our first capital raise, led by Lerer Hippeau,” said McCain.
“We have an incredible group of investors with deep consumer, cannabis and food industry expertise, which will help Sweet Reason bring the highest quality and best-tasting CBD beverages to consumers across North America.”
Lerer Hippeau’s Caitlin Strandberg said: “With Sweet Reason, we’re betting on a team that’s laser-focused on delivering superior quality and building a best-in-class brand. Hilary’s deep domain expertise in the food industry, as well as her passion for health and wellness, will accelerate Sweet Reason into a category leader.”
RiverPark Ventures managing partner Andy Appelbaum added: “RiverPark Ventures has been evaluating the CBD category for the last few years and believes that beverage will be a leading delivery channel.
“Sweet Reason has created a premium-quality, natural product that consumers love. Hilary McCain is the perfect entrepreneur to tackle this new and growing category.”
Sweet Reason products are currently on sale in more than 200 New York and online retailers.
© FoodBev Media Ltd 2020