Square Root Soda

Idea

Introduction

Square Root is shaking up the adult soft drinks category with a plethora of high-quality, fresh-pressed, small batch sodas with no concentrates or artificial flavours.

Working in the craft beer industry, our founders saw a constant influx of new beers and brewers, while the soft drinks industry stayed pretty much the same. So, they set out to make sodas in the same way that brewers make craft beer. Experimental, genuinely exciting soda, filled with character. Soda made right.

Our range includes all the classics, seasonal specialities, perfect serve tonics, and alcohol-free cocktails. We've grown from a kitchen operation to running our own production facility, using new technology to bottle handmade soda at scale.

Unlike other craft soft drinks firms, we fully own the process from concept to bottling. With a high calibre of sodas, branding, production and ethos, Square Root is the embodiment of craft.

Substantial accomplishments to date

– 3m bottles sold.

– Stocked in 9 Michelin star restaurants, and 800 on-trade outlets including a range of pub groups and cafes

– Winner of 3 Great Taste awards in 2019 and Best Drinks Producer at 2015 BBC Food & Farming Awards

– Crowdsourced a mojito recipe – our most successful launch to date. Launched as part of an alcohol-free cocktail consumer engagement campaign in partnership with Sober Girl Society & Millie Gooch (100k+ followers)

– Partnered with a premium spirit brand to produce 'prefect serve' recommendations on restaurant menus. Makes collaborative-branded tonics for high-end clients like Gymkhana & Pantechnicon. Collaborated with Makers Mark & Honest Burgers to offer a new simple serve

– Secured a listing as part of the Sainsbury’s Future Brands scheme, launching in 70 stores in February

– In discussions with Majestic Wines & Metro Pubs

– Gained SALSA accreditation and have applied to list with Ocado

– Yearly sensitised new business pipeline = £1.5m potential value (based on average win rate)

– Working with specialist importer, wholesaler & retailer, Liquiderie, we stock 27 venues in Paris.

– With a number of UK brands, we launched our Lemonade and two tonics in Italy, with plans to release the third. We grew Italian sales by 5x in 2020.

– Working with Andreas Akerlund, an early Camden Town investor & founder of Barworks, and Matt Steinhofel, an experienced on-trade sales consultant and ex-ALMR

Monetisation strategy

– Core range of drinks = 50% of sales

– Premium branding typical of craft products

– Launching and converting on-trade leads during Covid via online consumer engagement and in-venue promos

– Production method allows for innovation, new flavours, and for quick adaptions to new trends. Can work with brands, partners and customers to make unique sodas

– Aims for US launch 2023.

– Working with an importer to pitch to a Norwegian supermarket group for the next listing window (Summer 2021) Target Yearly value: £300k

- Working on a low sugar cola, functional drinks & seltzer products

- Launching Italy exclusive tonic water

Use of proceeds

We're raising to help us launch into the off trade, meet increased demand, and upscale our marketing – including the hiring of an experienced Head of Sales – in order to generate national interest and accelerate retail growth.

Funding will also be used to launch our drinks in cans. Cans will allow for easier delivery, access to new customers who don't accept glass, and for the sale of Square Root in public spaces where glass cannot be sold. Funding will cover initial fixed costs and canning production.

Ultimately, we want to see Square Root for sale on every street! We’ve seen trends like this before with the booming craft beer market – we're expecting the same to happen with craft soft drinks.

Relevant Exits:
Innocent – Sold 32% to Coca Cola for £100m. (Valued at £320m)

Beavertown Brewery – Sold minority to Heineken for £40m

Fever-Tree valued at £154m in 2014 IPO.

Camden Town Brewery – Sold to AB InBev for £85m. Turnover £9.5m – 8.9x Sales