Smart Soda Holdings Inc. in Mayfield Heights, Ohio, has landed a $3 million investment and strategic partnership agreement with Refreshing USA, which provides vending machine, micro market, and water and coffee dispenser services to workplaces nationwide.
The partnership will give Smart Soda access to Refreshing USA's nationwide accounts and food service companies as well as its locations in 44 states, the Mayfield Heights startup said in a statement.
Refreshing USA's distribution network includes thousands of retail locations, convenience stores, micro markets and more than 22,000 beverage vending machines, Smart Soda said.
"We couldn't wish for a better partner to support our massive growth and our ready-to-drink launch coming in the next 60 days," said Lior Shafir, CEO of Smart Soda, in his company's statement.
Within that time, Smart Soda plans to unveil a line of nine vitamin-infused, naturally flavored, sparkling alkaline waters in tall, slim cans, which will be available in vending machines and thousands of retail outlets nationwide, Shafir said.
Smart Soda plans to use its Refreshing USA investment to do its "ready-to-drink" launch, Safir said in an email.
The startup, which recently moved its headquarters to a 15,000-square-foot in Mayfield Heights, also is planning to hire at least 20 people, rebrand, invest in marketing, and expand globally by the end of the year, he said.
The company launched Smart Soda UK and Canada earlier this year and plans to launch Smart Soda Middle East and Mexico later this year, Safir said.
Like Smart Water, Refreshing USA is growing. The Everett, Washington-based company expects to beat its record growth in 2022, partly by expanding opportunities with Smart Soda.
Smart Soda products are a healthier option than conventional sodas and fit with Refreshing USA's growth strategy, said Ryan Wear, the retailer's managing partner said in Smart Soda's statement.
"We have a dedicated both capital and personnel to place equipment," Wear said. "We believe that Smart Soda is a great fit for corporate offices, C-stores and universities."
Founded in 2019, Smart Soda has developed 32 vitamin-infused, flavored sparkling waters and craft sodas and their dispensing systems. The company's first customers were restaurants, offices, cafes, health clubs and convenience stores.
The company was co-founded by Shafir, who previously was the exclusive U.S. partner and distributor of Soda Stream Professional, which was acquired by PepsiCo in 2018 for $3.2 billion.
Smart Soda raised $304,000 in a 2020 StartEngine campaign and $300,000 in seed funding in August 2021, according to Crunchbase.
Cleveland Business Journal named Smart Water its Startups to Watch in 2022 list.
