Non-alcoholic spirit brand Lyre's scores £9m funding in seed round

Non-alcoholic spirits company Lyre's has secured £9 million worth of capital through seed round funding to support its expansion. 

It is the largest material investment on record for the category and will enable Lyre's to continue its innovations in the low and no-alcohol space. Since launching 18 months ago, Lyre's has been a hit with consumers and industry, scooping numerous awards and stretching its distrubtion networks around the globe.

The brand, developed in Australia, has capitalised on growth in the no and low-alcohol space in the UK and elsewhere in the world, as more people are moderating their alcohol consumption and experimenting with alternatives.

By focusing on direct-to-consumer sales, Lyre's has seen monthly recurring revenue growth of more than 400 per cent since January, despite tough trading conditions due to Covid-19. The brand now has 13 products in its stable with more set to hit the market in the next six months. 

The seed round was designed to be completed in three tranches over an initial 12-month trading period, to ensure sufficient cash flow for the business' expansion. Major participants in the seed round included VRD Investment, Doehler Ventures, DLF Ventures and Maropost Ventures.

Mark Livings, Lyre's CEO and co-founder, said: "This growth positions the Lyre's brand for continued success and leadership with high-quality non-alcoholic alternatives in one of the fastest-growing consumer brand categories in the world.

"Our buusiness anticipates and matches the trends of the consumer and culture and our current product innovation is being developed to match alcohol spirit flavours and styles. Lyre's was created to shake up the drinks category and put the choice back into the consumer's social occasion to drink freely. The recognition from multiple international competitions shows we clearly have something that is resonating."

Fellow founder Carl Hartmann said: "The investors we've brought into this business see value well beyond the short to medium-term impacts of the pandemic and will bring significantly more value beyond their participation from a capital perspective."

Lyre's is available in more than 30 markets with a presence in on and off-trade venues. Mark said manufacturing in multiple international locations, compliance for new markets and continued recruitment were at the top of Lyre's' priority list for the next year. The brand is also preparing for the release of a ready-to-drink (RTD) range.

29 September 2020 - Bethany Whymark