Vermont-based DRINKmaple Inc. has raised $3.9 million in its latest funding round according to statements filed with the Securities and Exchange Commission. The Form D also indicates that the company is targeting $4.6 million, leaving approximately $742,000 still to raise to close the round.
This latest round for DRINKmaple follows a $1.5 million seed round raised by the company in 2015 involving 13 different investors, according to BevNet, and a raising of $450,000 completed in October 2016.
DRINKmaple was founded in Albans, Vermont, in 2013 by partners Kate Weiler, an Ironman triathlete and nutrition and holistic wellness advocate, and Jeff Rose, also an Ironman triathlete and technical specialist.
Often, maple water is confused by consumers with maple syrup. Maple water is the raw sap extracted directly from maple trees and is between 95 and 98 percent water. It is naturally filtered by the tree, has a light, unassuming taste, is non-GMO, low-calorie, gluten-free, and contains 46 bioactive nutrients, including phytonutrients that are specific to tree waters.
“We’re so programmed to think of sap as sticky and gooey,” Valentina Cugnasca, co-founder and CEO of Vertical Water – a Drink Maple market rival – told NPR last July. “It takes a lot of consumer education to explain what maple water really is.”
A recent report issued by Technavio in January of this year states that the global maple water market is expected to see 30 percent growth to reach a value of US$994 million by 2020, and will likely become a key competitor to coconut water, which led the market for the category in 2015.
“The maple water market exhibits huge growth potential due to an increasing demand for organic and natural products among customers,” said Vijay Sarathi, research expert for non-alcoholic beverages with Technavio. “Although high pricing might affect its sales, increased awareness of the health benefits on offer and its easy availability is anticipated to help this market register higher sales over the next four years.”
Maple water has 16 times more potassium, 37 times more calcium, and 3.9 times more magnesium than spring water, and its attributes have been shown to support immunity, improve digestion, and possibly help in the prevention of degenerative diseases.
“I loved the idea that it was natural, plant-based hydration from a local, sustainable source that tasted great,” Weiler told NPR in an interview last July.
However, although its health benefits have been noted as major drivers for the popularity among consumers, maple water is also seeing growth due to its rising use by U.S. and Canadian restaurants as a flavoring in dishes, and as a marinade, in ice creams, sorbets, soups, or as specialty ice cubes in cocktails, according to Technavio.
This demand is being reflected in the numbers – in DRINKmaple’s first year, the company partnered with a farm in Montreal to produce an initial run of 196,000 units which hit the market in May 2014. The next year, the company had expectations of producing more than 1 million units, reports the Boston Globe.
The potential in the category is impressive. “Asia-Pacific and South America are expected to be the fastest growth markets for coconut water. Both have high unpackaged coconut water consumption and thus particular scope for packaged coconut water,” said Portia Rifat, senior market analyst with Zenith Global. “The much smaller maple water segment is projected to triple in size to 2020. North America offers the greatest potential for innovation in natural flavors and organic sourcing. The best prospects for birch water are in Western Europe.”
Food and beverage consultancy Zenith Global concluded that the overall alternative water market saw 21 percent growth last year, to reach a value of $2.7 billion, which is expected to double in size to reach a value of $5.4 billion by 2020, reports FoodBev. Meanwhile, coconut water, the category leader, is forecast by Research and Markets to see a compounded annual growth rate of 26.75 through 2020, driven largely by key multinationals such as PepsiCo and Coca-Cola buying in.
-Lynda Kiernan
Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com.
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