Pre-mixed drinks maker Soho Street Cocktails raising new funding
Pre-mixed drinks maker Soho Street Cocktails is raising a new round of funding through the private equity firm Growthdeck as demand surges for its ready-made, premium cocktails.
Soho Street Cocktails sells pre-mixed, bar-quality cocktail pouches, which allow bars and restaurants to improve serve consistency, reduce service time and make industry leading margins.
The funds raised through Growthdeck will fund Soho Street Cocktails’ core strategy of growing sales through retailers and in bars and restaurants, as well as continuing to increase its production.
Although the company has only recently begun the rollout of its products, it has already sold them to leading restaurants, pub and bar groups and independent retailers, with a 100 per cent success rate in sales following a demonstration of the product.
One of the largest UK distributors to independent bars and restaurants has recently agreed to list the product to its customer base. Talks are also ongoing with two other distributors.
The firm is also in discussions with several major supermarkets, with two currently testing the product. By 2024 Soho Street Cocktails expects its pouches to be available in more than 500 retail outlets and over 1,100 licensed premises.
The company is led by CEO Paul Scarratt, who co-founded the business after 27 years in the drinks industry. Scarratt previously held senior executive roles at two of the UK’s most successful drinks distributors, Matthew Clark and Bibendum Wine.
The global ready-to-drink cocktail market is a rapidly growing market and is forecast to grow 12.1 per cent a year. The sector was valued at USD715 million in 2020 and is set to be worth USD1.6 billion by 2027. The major factor driving the growth of the market is the premiumisation of cocktails, with customers demanding high quality from ready-to-drink versions.
Steve Talbot, Investment Director at Growthdeck, says: “This is an excellent opportunity to back a premium product that can make a genuine impact on margins for bars and restaurants as the industry bounces back.”
“Soho Street’s cocktails are as good as fresh and help to cut serve time significantly. There should be plenty of demand for its product as Covid restrictions continue to ease.”
Growthdeck’s equity investment in Soho Street Cocktails qualifies for tax reliefs under the Enterprise Investment Scheme (EIS). EIS is an investment scheme which allows private investors to make tax savings by investing in growth businesses.