A local beverage company has its sights set on growth as it raises capital through a crowdfunding campaign.
Elixir Kombucha, owned by Corey and Danielle Wood, has raised more than $240,000 on Wefunder, a crowdfunding platform that connects startups with investors online. The company, founded in 2016, creates its own kombucha product, selling it in stores across Kentucky and in some surrounding states.
Corey Wood said the campaign launched on Jan. 1. The goal is to raise $1 million at a $6 million valuation cap, and Elixir Kombucha is planning to use the funds to scale.
“Building a team and production and sales is going to be key for us in this next stage,” Wood said. “We’ve been doing it as two co-founders, myself and Danielle ... and two folks — one in production, one in operations — so we're really a small, kind of lean, scrappy team. [In] this next phase, we are excited to be building out from that and bringing people in.”
The Woods' primary goal is to expand Elixir’s production capacity. The company currently operates out of Chef Space, a restaurant incubator in the Russell neighborhood. While it was great for starting the business, Wood said they’ve outgrown the space.
Elixir has a couple hundred square feet in Chef Space. With the new funds, the company is planning a move to a 6,000-square-foot space in the warehouse side of Logan Street Market. Wood said the spot is perfect for a larger scale beverage manufacturing operation.
The Woods hope to be in the new facility in the next three to six months. There, the brand will be able to expand its product offerings with new flavors. Elixir currently has four core flavors, with some rotating seasonal flavors.
"I'm looking forward to having larger capacity to open up more opportunities for product development," Danielle Wood said in a message. "We've been limited by our capacity for so long now and the ideas keep coming, so this expansion will allow us to bring them to life."
With the move, the business plans to hire a few more employees. In the next year, Wood said they hope to hire two in production and two in sales and marketing. The five-year goal is to have 16 to 18 people.
“What Corey and Danielle have been able to accomplish through sheer determination over the past few years has been inspiring to watch,” Patrick Kinsella, director of operations, said in a message. “I can’t wait to see what can be done with a bigger team, a dedicated production facility and an incredible community of supporters.”
Elixir was intentional about choosing Wefunder to launch its campaign because it allows members of the community to take part in investing. Wood said both literally and metaphorically, it takes a community to make Elixir.
“Fundamentally, what makes a product like kombucha special is the live culture,” Corey Wood said. “It's known as a SCOBY, which is an acronym for symbiotic community of bacteria and yeast. It's through that community working in collaboration that kombucha becomes a very special probiotic beverage.”
But the Elixir's mission is to make healthy choices easier, and Wood said the company is building a community around that mission.
“As Elixir grows, that community of folks grows alongside,” Wood said. “That leads to our seed investment round, and the idea of community is emerging yet again.”
Elixir’s lead investor is local developer Gill Holland, who invested $50,000 in the round. Wood said as a community builder, Holland is dedicated to the startup community and Louisville as a whole.
Holland also invested in Cornbread Hemp, a CBD startup that raised nearly $400,000 via Wefunder in 2020.
Another early investor in Elixir is Keyhorse Capital, a Kentucky-based venture capital firm. Keyhorse has taken an interest in the company, specifically on the innovation side. Wood said the firm is helping Elixir find new uses for some of the byproducts that come from kombucha making.
Keyhorse Capital also invested in Modica, another company in the beverage space, which has raised more than $437,000 on Wefunder so far.
Elixir is the best-selling local kombucha brand in the entire Whole Foods Midwest region. Wood said the product was just introduced to Whole Foods in Cincinnati this past week.
It’s sold in Whole Foods locations in Louisville and Lexington, Kentucky, local grocer Rainbow Blossom, as well as 150 other independent retailers across the state. The product also is at quick-service eateries like Quills Coffee, Green District Salads and Shiraz Mediterranean Grill.
Elixir’s 2022 revenue was $170,000, which is the company’s best year yet. Since its inception, the company has garnered nearly $1 million in sales.
To learn more about Elixir and the growing beverage industry in Louisville, check out my cover story from last September on the topic.
