Plant-based Cure Hydration raises $2.6 million, plans expansion

18 Dec 2020

Functional hydration brand Cure Hydration announced it closed a $2.6 million seed funding round led by led by Lerer Hippeau with additional participation from M3 Ventures, Litani Ventures, Andy Roddick, Nas, Matthew Dellavedova, Philip Krim, co-founder & CEO of Casper and Nick Green, CEO of Thrive Market. The new capital will be used to scale the team, build customer awareness in the market, and develop new functions and flavors.

In addition to the expansion of this hydration brand, Cure Hydration is expanding to 4,200 retail stores nationwide as well as adding Ruby Riot Grapefruit and Laser Focus Matcha flavors to its lineup that already includes Wild Thing, Main Squeeze and Golden Hour. Each serving of the beverage comes in individual packets of powdered formulation that consumers mix with water.

Plant-based Cure Hydration raises $2.6 million, plans expansion

Bottling health has become a popular approach for consumers looking to get more out of a drink than just quench their thirst. With startup brands like Oxigen, PepsiCo’s Driftwell and Keurig Dr Pepper’s Core Nutrition brand, Cure Hydration is competing in a crowded space and is looking to stand out with its plant-based formulations that have no added sugar and four times the electrolytes of leading sports drinks. Despite the intense competition, Cure Hydration is tapping into consumer demand for holistic wellness, personalization, functionality and experience, traits that Imbibe, a beverage development company, predicted would define beverages launched in 2020.

While only time will tell whether the company will gain traction in the market and be a top player, functional beverages are a good bet for larger food and beverage companies looking for bottom-line growth.

A Kerry study from 2019 showed that 65% of consumers seek functional benefits from their food and drink with ingredients like omega-3s, green tea, honey, coffee and probiotics being the most sought after. This continued demand for functional attributes in food and drinks will drive the global functional ingredients market from $64.9 million in 2018 to nearly $100 million by 2025, per Zion Market Research.

But Big Food is not the only party interested in functional beverages. VC firms are also eyeing the space and have been putting more money toward companies developing these solutions. In 2018, VCs put more than $170 million toward functional beverage companies, a significant increase from the $111 million they invested in 2017, according to Pitchbook data.

The funds acquired by Cure Hydration in this latest funding round are a vote of confidence from investors signaling that the company’s claims of being “proven to hydrate as effectively as an IV drip” and “provid[ing] your body with everything it needs for optimal hydration,” have some credence. Plus, having celebrities sign on to the funding round – particularly athletes like Andy Roddick – will offer some legitimacy and notoriety to the brand as it looks to take off in the functional beverage space.

Related news

Finnish coffee brand Meira launches a bio-based sustainable cup

Finnish coffee brand Meira launches a bio-based sustainable cup

11 Dec 2020

Helsinki-based coffee roaster Meira released a new line of coffee called Vallilan Paahtimo with the aim of offering a more sustainable cup of coffee – both inside and out. The coffee is a single-origin, sustainably grown variety that is then packaged i...

Read more 
Abbott launches infant formula with immune component

Abbott launches infant formula with immune component

10 Dec 2020

Infant nutrition company Abbott Nutrition launched its new Similac line Pro-Advance which is its “closest formulation to breast milk” and includes added 2’-FL HMO prebiotic for infant immune support. The company is launching this product in Canada wher...

Read more 
Lactalis moves more brands into Indian market

Lactalis moves more brands into Indian market

8 Dec 2020

French brand Lactalis is expanding its hold in the Indian market through the launch of its UHT toned Lactel milk brand. These one-liter packs are fortified with vitamins A and D will retail for Rs70 ($0.94).

Read more 
Terra Kaffe closes funding for single-serve, podless espresso machine

Terra Kaffe closes funding for single-serve, podless espresso machine

1 Dec 2020

Superautomatic espresso maker Terra Kaffee closed a $4 million funding round with the New York-based venture capital fund The Seed Lab, bringing its total funding to just shy of $5 million since its debut in 2019.

Read more 
Heineken is now brewing its Sol beer with solar

Heineken is now brewing its Sol beer with solar

25 Nov 2020

Heineken is one step closer to its goal of increasing the share of renewable energy in its beverage production to 70% by 2030 with the installation of 9,212 solar panels at its brewery in the Netherlands where it produces Sol beer.

Read more 
Plant-based energy shots experience buzz in the market

Plant-based energy shots experience buzz in the market

16 Nov 2020

Plant-based options are making inroads into a variety of categories within the food and beverage market. Go Big and Proper Wild are two new entrants into the space that are taking aim at a small category that has yet to experience significant innovatio...

Read more 
Coca-Cola reveals its new paper bottle prototype

Coca-Cola reveals its new paper bottle prototype

11 Nov 2020

Atlanta-based beverage company Coca-Cola announced that it is testing a paper bottle prototype this month for both still and carbonated beverages. While this prototype will be tested in limited markets, Coca-Cola said that it is “too early” to specific...

Read more 
Cocoa fruit juice: The next big beverage ingredient?

Cocoa fruit juice: The next big beverage ingredient?

9 Nov 2020

Cocoa fruit juice has a refreshingly sweet and sour flavour with tropical notes of lychee and peach, making it ideal for premium-positioned drinks, says Ghanaian-Swiss supplier Koa.

Read more 
UK’s Ceder’s gin is debuting in the U.S.

UK’s Ceder’s gin is debuting in the U.S.

5 Nov 2020

Ceder’s non-alcoholic gin debuted in the U.S. this past October, launching in retail and on-premise locations in Connecticut, Delaware, Maryland, Virginia and Washington D.C as well as online.

Read more 
Coca-Cola to discontinue production of Tab soda

Coca-Cola to discontinue production of Tab soda

3 Nov 2020

As the soda giant Coca-Cola looks to slim down its portfolio and focus on profitable brands, Tab soda has become the latest legacy brand to be put on the chopping block.

Read more