The nonalcoholic beverage industry has been on the rise since the Covid pandemic began, with more consumers looking for low-alcoholic or nonalcoholic beer, wine and seltzers.
One company at the forefront of this trend is Grüvi, a Denver-based nonalcoholic beverage provider that recently closed on a $3 million seed round.
“[Our] mission is to trailblaze a new way to live and socialize with alcohol-free beverages,” said Anika Sawni, co-founder and chief brand officer of Grüvi. “And essentially, through that mission, what we see happening is becoming a mainstream option for people and ... celebrating nonalcoholic choices and lifestyles.”
Grüvi has raised $5 million to date, including a $2 million round in 2021. But it’s raised capital a bit differently than most startups. Instead of only seeking money from venture capital firms and angel investors, its rounds have included investments from more than 100 of its customers.
Its seed round, which closed in mid-July, was co-led by more than 50 of its customers, local VC firm Rockies Venture Club and Good & Well, an investment firm based in Toronto, Canada.
Sawni said when she and her brother and co-founder Niki told customers they were raising capital, they told them to reach out if they wanted to invest. This turned into more than 500 customers expressing interest in investing.
From that group of 500, more than 100 were accredited investors who could legally invest in Grüvi, per U.S. Securities and Exchange Commission’s rules. (Investing in a business is typically only available to individuals who meet professional standards or have a high net worth or yearly income and become accredited investors.)
Other traditional investors, like Good & Well, also began as customers.
“We were initially drawn to Grüvi as customers, enticed by their exceptional non-alcoholic beverages,” Alexandra Baillie, president of Good & Well, said in a statement. “However, what truly impressed us as investors was their extraordinarily engaged community of consumers. The team at Gruvi has an infectious belief in a more inclusive approach to celebration, which guides every aspect of their business, from product innovation to consumer engagement.”
Sawni said building a good brand following has been critical to Grüvi's success. The startup even offers a Discovery Series in which its bottles and cans have a QR code consumers can scan to take a direct survey about the beverage and brand. This immediate customer feedback allows Grüvi to make changes quickly.
The startup's recent capital will help it expand its market reach and make its products available to more consumers.
Today, its nonalcoholic beer and wine are available in nearly 4,000 retail locations across the U.S. and Canada, including Total Wine & More, Whole Foods Market, Safeway and Target, to name a few. Grüvi products are also sold at music venues, such as The Boulder Theater and Aggie Theater in Fort Collins, and sports arenas like Ball Arena.
Since Grüvi’s founding in April 2019, the nonalcoholic industry has vastly changed.
“It’s a stark difference, for sure,” Sawni said.
In fact, sales of low- and no-alcohol drinks grew by 7% in 10 national markets, including the U.S., Canada, Australia, France, Germany, Japan, Spain and the U.K. Last year, the no- and low-alcohol drink industry’s market value exceed $11 billion, up from $8 billion in 2018, according to a December 2022 IWSR Drinks Market Analysis report.
When Grüvi started, there were only a handful of nonalcoholic options available. Now, more local brands have begun offering nonalcoholic drinks, including Boulder-based Hoplark Brewery, and at one point an alcohol-free bar opened in Denver, although it temporarily closed earlier this year as it looks for new owners.
Sawni said she’s also noticed an increase in conversations around alcohol-free consumption and sober curiosity. She attributes a lot of these conversations to health trends in which people are more mindful about what they consume and how it makes them feel, especially when it comes to alcohol.
In addition to its loyal customer following, Grüvi has caught the attention of leaders and experts in the beverage industry.
It is the first nonalcoholic brand to be awarded gold as the world’s best beer and wine, Sawni said. Grüvi won a gold medal for its non-alcoholic beer, Golden Lager, at the World Beer Cup in 2022. Its Sangria won gold at the 2023 International Wine and Spirit Competition and the fourth iteration of its Dry Red Blend won silver at the same competition.
“We believe that investing in world-class taste, unparalleled variety and accessibility (retail, single-serve options, price point) is the path to Grüvi becoming the mainstream alcohol-free brand,” Sawni said in an email.
In Colorado, the startup even ranks among big-named brands like Coors Brewing Company and Heineken as a top 5 nonalcoholic brand in the state, according to NielsenIQ Byzzer analytics Grüvi shared with Colorado Inno.
