Eat Beyond steps into beverage space with adaptogenic Daydream Drinks investment
14 May 2021 --- Eat Beyond Global Holdings, an investment issuer focused on the plant-based and alternative food sector, has invested in Daydream Drinks.
The Ontario-based beverage company has created Canada’s first sparkling water infused with hemp extracts and adaptogens as an alternative to coffee and conventional energy drinks. The financial terms of the investment were not disclosed.
“Eat Beyond welcomes its first beverage company to our ever-growing food technology portfolio. We like the idea that not only can people eat better but drink better too,” says Patrick Morris, CEO of Eat Beyond.
Daydream has seen robust growth since launching in late 2019, with year-over-year revenue jumping 550 percent in 2020. Projections show Daydream is on track for another triple-digit year of revenue growth.
”Daydream has shown impressive growth in its brief history and is well-positioned to capture even more of the beverage market in the years ahead,” Morris adds.
Alt-beverages on the rise
Daydream drinks were created based on the fundamental principle that there was a gap in the market for a healthy, plant-based alternative to coffee and energy drinks, with no caffeine, sugar or artificial sweeteners, says Alex Simonelli, founder and CEO of Daydream.
Daydream drinks were created to fill the market gap for caffeine- and sweetener-free alternatives to coffee and energy drinks.”Adaptogens help the body tap into natural energy reserves to provide focus and clarity. They are also well known for balancing stress levels by supporting the endocrine system and keeping inflammation in check.”
Daydream’s hemp oil contains below 0.03 percent CBD and zero THC, making Daydream a non-cannabis product. Hemp and adaptogens have a range of benefits, notes Daydream, making them a suitable option for Canadian grocery and retail stores.
Strides in the brand
Morris feels positive about the brand’s ability to grow organically through word-of-mouth, which he says is critical for any product that contains hemp as an ingredient in Canada.
The colorful gradient cans are on-track to reach more than 1,000 stores across Canada by the end of 2021, a roughly 2,300 percent increase from its debut year.
Further to its financial support, Eat Beyond investment committee member Alan Linder has also signed on to join Daydream’s advisory board.
Linder has nearly three decades of experience in the natural/organic food and grocery industry.
“We work hands-on with our portfolio companies to help them navigate growth and connect them with resources. I look forward to working closely with Daydream to catalyze its growth,” says Linder.
Eat Beyond joins Global Edge Investments, a Toronto-based investment and management company, and other industry veterans, such as Jorn Socquet, a 14-year executive from ABinBEV, as an early-stage investor in Daydream.
Mood: The next occasion
As consumers seek respite from the pressures of hectic lives, adaptogens and other natural ingredients are poised for success.
Last month, the founder of adaptogen powder company Goldmine identified Millennials as the most interested in adaptogenic beverages, with 96 percent reporting high-stress levels.
PepsiCo has recently tapped into this trend with the launch of its Lift beverage, containing 200 mg of the adaptogen Panax ginseng. The drink is set to be sold via e-commerce and in select natural stores.
Moreover, Kerry has recently flagged opportunities for drinks with added benefits, revealing that 65 percent of functional beverage consumers are more worried about their health since the start of the pandemic.
Investing in plant-based
Eat Beyond’s other portfolio companies include plant-based pioneers, such as Eat Just, which produces cell-based chicken currently being sold in the restaurant 1800 in Singapore.
Nabati Foods, also part of Eat Beyond’s portfolio, has recently scaled up its vegan cheese and meat alternatives production with a new plant in Canada.
By Missy Green
