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Functional beverage company Xoxo Soda has closed a £4 million investment round and announced its first national retail listings in the UK.
Led by Lever VC and Slingshot Ventures, with participation from both existing and new strategic investors, Xoxo has secured an overfunded £4 million raise. This investment will fuel further expansion, team growth and brand awareness, coinciding with the brand's launch into two major UK retailers and continued European growth.
James Caffyn, a partner at investment firm Lever VC, said: “We’ve seen how quickly prebiotic sodas have taken off in the US, and Europe presents a similarly compelling opportunity, with a rapidly growing base of health-conscious consumers and a category still ripe for disruption".
"Xoxo has demonstrated unusually fast consumer uptake, strong repeat rates and real traction at retail. With a standout brand and a product that delivers on both flavour and function, they’re well positioned to lead the reinvention of the soft drinks aisle.”
Roope Vahahyyppa, investment director at Slingshot Ventures, agreed saying: “Consumers are increasingly seeking better-for-you alternatives to traditional soft drinks, making this an exciting space to invest in. Xoxo Soda sits at the intersection of taste, wellness and innovation, redefining what a modern soda can be".
"Equally compelling is the team, under the leadership of Rory and Nick, who are rapidly building momentum with leading retailers across the UK and EU. We’re thrilled to support their journey!”
Founded two years ago, Xoxo has reported fivefold year-on-year growth and is currently available in 7,000 stores, with projections to exceed 11,000 by the end of summer. In April, it became the first prebiotic soda brand to secure a front-of-store meal deal listing at Coop. Two additional national listings are expected later this year.
With the rapid expansion of the functional drinks market across the UK and Europe, Xoxo aims to bring bold flavour alongside functionality as the category moves further into the mainstream.
Rory Paterson, co-founder and CEO of Xoxo Soda, said: “This investment and our expansion into UK-wide grocery is a huge moment for Xoxo Soda. We’ve been on an incredible journey over the past two years and this is just the beginning."
"This game-changing investment round will allow us to continue building our dream team, deliver dynamic marketing campaigns to increase brand awareness and drive even more product trials, all while reinforcing key areas across all functions and markets to ensure continued innovation and excellence. We can’t wait to introduce even more people to the bold and refreshing taste of Xoxo.”