Erewhon Market-backed functional beverage Barcode scores US$2.2M funding

14 Feb 2022 --- Premium functional beverage company Barcode has closed a multimillion dollar fundraising round after gaining commitments from a “top-tier group” of institutional investors, celebrities and star athletes.

Participants included Trousdale Ventures, Midnight Venture Partners, Cathexis Ventures, Silas Capital, Gaingels and Erewhon Market. Barcode also gained commitments from music and television producer and recording artist Kelly Rowland who will support Barcode’s mass retail expansion.

Barcode was launched in 2021 by Mubarak Malik, a NBA coach and professional trainer, and the company aims to disrupt the sports drink category.

Malik says his investors have successfully scaled the high-growth beverage brand from zero to US$10 million in sales.

The US-based company has also secured an “exclusive” distribution partnership with Los Angeles Distribution. So far, Barcode has seen “rapid growth” in Erewhon Market, a luxury health-foods store and hotbed for rising consumer trends.

Functional better-for-you beverage
Barcode is set to enter into an additional ten Central Market stores as well as launch on Amazon this March, which will accelerate Barcode’s double-digit growth momentum.

Barcode says it will fill a gap in the premium hydration market.The goal is to scale the business gradually over time through the “natural channel” in southern California, Texas and Florida before expanding across the US.

Malik aims for the drink to become an “iconic brand” that will take on the “better-for-you” category.

The drink is reportedly “packed with multivitamins and superfoods” like adaptogens and promises optimized nutrition for consumers.

Barcode’s packaging is minimalistic and its labeling is simple. The drink comes in three flavors, Lemon Lime, Watermelon and Pinot Noir and a 12-pack sells for US$48.00.

Standout branding tactics
Barcode was initially launched as a “digitally native” brand whose marketing appeals to youthful consumers via social media platforms such as Instagram.

According to Malik: “With our branding, the barcode not only acts as a logo, but we’re also able to add digital filters because it's an active universal product code the consumer can interact with.”

Barcode is completely vegan and ingredients include ashwagandha, cordyceps extract, magnesium, shiitake extract, B vitamins and Himalayan pink salt. The drink promises to boost consumers’ hydration, immunity and recovery, increasing “full-body resiliency.”

No more dilemma over sports drinks
Rowland explains she got involved in the company because of the distinctiveness of the product for the ready-to-drink category. “I invested in this company because I believe in the team behind it, and the uniqueness of the product. I haven't seen anything like Barcode that is great for athletes and anyone on the move.”

NBA basketball player Maurice Harkless of the Sacramento Kings will take part in branding, marketing and product innovation.

“It was a no-brainer for me to get involved because I can use it as a vehicle to educate younger players, who aspire to play in the NBA, about the importance of wellness,” says Harkless.

Last April, Informed Sports launched its barcode scanning app to help users identify banned substances in sports nutrition products.

Edited by Olivia Nelson

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