Lyre’s, a London-based non-alcoholic spirits brand, has secured a £20 million funding round, at a valuation of £270 million.
The funding round was led by new investor, D Squared Capital, alongside existing investor, Morgan Creek Capital Management (early backers of Alibaba, SpaceX, Lyft, Drizly NinjaVan, and Allbirds).
Other early backers increasing positions included DLF Venture, VRD Ventures, and Maropost Ventures.
Lyre’s will use the funding for marketing and to grow headcount, creating more than 50 new jobs in sales and marketing, production, logistics, finance, and e-commerce.
Additionally, the company will continue to co-invest with several manufacturing partners to expand production capacity to meet demand across its facilities in the UK, Germany, Australia, and the US.
Lyre’s has established an R&D division in partnership with beverage technology giant Döhler as well.
“Millennials and older Gen Zs are drinking less alcohol than any generation before them, but the mindful drinking movement transcends generations and cultural borders. We’re not only growing our business – we’re expanding the whole category, entering territories like the Middle East and Far East virtually uncontested,” says Mark Livings, Lyre’s co-founder and CEO.
“The pace of growth we’re seeing is exceptional. We sold our first bottle in 2019 and today we’re selling one at least every 30 seconds. On our current trajectory, Lyre’s is set to become the fastest independent beverage brand to reach Unicorn status,” adds Livings.
Founded in 2019 by Mark Livings and Carl Hartmann, Lyre’s replicate the world’s most popular spirits in a non-alcoholic format, as close to the original premium volume spirit as possible.
So far, the company has a portfolio of 14 premium non-alcoholic spirits, including American Malt, Dry London Spirit, and Italian Spritz. As per the company’s claims, these non-alcoholic spirits are capable of crafting 90% of the world’s best-selling cocktails while also underpinning a ready-to-drink range.
Lyre’s currently sells in over 60 countries across multiple channels, including direct-to-consumer via its website, as well in leading restaurants, bars, and retailers – including over a dozen of the World’s Top 50 bars, Nobu Restaurants, and Bvlgari and Ritz Carlton hotels – and is available on many airlines.
Lyre’s is a UK company with an international workforce of over 80 people with offices in London, Sydney, New York, Singapore, Amsterdam, Dubai, and Shanghai.
The company has production in the UK, Australia, the United States, and Germany. The business is on course to be annualising £50 million in revenues by December this year, claims the company in the press release.
Daniel Grossman, Managing Director of D Squared Capital, comments: “The no/low alcohol beverage market is one of the fastest-growing markets in F&B and is showing similar characteristics to plant-based milk, meats, and other mindful consumer categories. Lyre’s leading product, brand, and range of award-winning SKUs have proven that they are the industry leader and we are excited to be backing the best in class company.”
Mark Yusko, CEO, and Founder of Morgan Creek Capital Management, comments: “We are pleased to be a co-lead investor in this financing round for Lyre’s. We saw early on the potential of the brand and its products to capture market share in this fast-growing consumer category. With a footprint now established in 60 countries, we are excited to see the impact of increased investment in sales and marketing facilitated by this capital injection.”