The Zero Proof Closes Series A Funding Round and Extends Its Lead in Adult Non-Alcoholic Beverages

$1.8 billion U.S. market projected to continue rapid growth trajectory

ATLANTA, Jan. 30, 2024 /PRNewswire/ -- The Zero Proof, the first and leading dedicated online retailer, importer, and supplier of adult non-alcoholic beverages, today announced the closing of its Series A funding round. The round was led by Asahi Group Beverages & Innovation, the U.S.-based venture arm of Asahi Group Holdings, Ltd. The company's previous lead investor, Overline, participated in the round, along with Springdale Ventures.

The Zero Proof plans to use the funding to hire salespeople in key markets, expand its distribution network nationwide, grow its base of key retail accounts, and broaden its wholesale portfolio. Additionally, the company plans to increase its suite of proprietary adult non-alcoholic spirits and wine, building on the successful launch of its new non-alc wine label, Saint Viviana.

"I'm thrilled to welcome our new, strategic investors to the team," said Sean Goldsmith, CEO and co-founder of The Zero Proof. "It's an exciting time for the adult, non-alc category, and this new funding enables us to accelerate our already phenomenal growth by building out our omnichannel distribution and broadening our suite of high-quality, delicious NA beverages."

In addition to its leading e-commerce platform at www.thezeroproof.com, The Zero Proof also sells through distribution partners like KeHE and LibDib, DSD Distributors and key retailers nationwide. The company is the exclusive importer of top international, non-alcoholic brands Gnista (Sweden), ISH (Denmark), and Oddbird (Sweden). The Zero Proof also offers an expanding suite of company-owned brands that today includes Saint Viviana and Lapo's, its line of Italian aperitivos and digestivos.

"We are excited to partner with The Zero Proof and to support the company in furthering its lead in the hyper-growth adult non-alcoholic beverage category," said Kristen Bareuther, President and Head of Investment at Asahi Group Beverages & Innovation. "We've closely studied the market and believe The Zero Proof is best positioned to be the long-term category winner, with unparalleled distribution and an ever-expanding product offering."

According to IWSR, 42.5% of the U.S. legal drinking age population consumes no/low-alcohol beverages, resulting in a current domestic market specifically for Adult no-alcohol beverages totaling over $1.8 billion. The U.S. no-alcohol market is projected to rapidly grow, with IWSR forecasting that by 2027 the category will command nearly 4% of total alcohol volumes in the top 10 global no/low-alcohol markets. Growth in the category is being driven in large part by Millennials, with 45% of this generation being "substituters," consuming no/low alcohol beverages on certain occasions and alcoholic beverages on others.

"Overline is thrilled to continue our partnership with Sean and the team at The Zero Proof," said Sean O'Brien, Managing Partner of Overline. "The adult NA category shows no sign of slowing, and The Zero Proof continues to take share in this exciting category. The company's revenue has increased sixfold since our initial investment, and this additional funding will help them further accelerate growth through increased distribution and product availability."

The Zero Proof experienced 300% revenue growth in Q4 from 2022 to 2023 and Dry January will be another record month for the company.

About The Zero Proof
Atlanta-based The Zero Proof is a leading online retailer, importer and supplier of premium non-alcoholic wine, spirits and cocktails. The Company reaches customers through its e-commerce shop at www.thezeroproof.com, where consumers are also able to find a wide range of content that helps them discover new products and places to enjoy them. The Zero Proof also wholesales its broad selection of premium imported and domestic non-alc beverages to retailers nationwide.

About Asahi Group Beverages & Innovation
Asahi Group Beverages & Innovation is an Investment Fund launched in 2023 by Asahi Group Holdings, Ltd. Located in San Francisco, Asahi Group Beverages & Innovation provides funding to US startups that have attractive brands with significant future growth potential in the low-alcohol beverages, non-alcohol beer-taste beverages, and adult soft drink categories. Additionally, Asahi Group Beverages & Innovation invests in startups with technology that will lead to new sales and manufacturing methods. Asahi Group Holdings, Ltd. is a global beverage leader offering a diverse collection of brands centered on beer, alcohol and non-alcohol beverages, and food. Asahi Group's mission is to deliver on our great taste promise and bring more fun to life.

Contact:
Mercer Brockenbrough
[email protected] 706-540-6258 www.thezeroproof.com

SOURCE The Zero Proof