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The Company: GLOW is a Southern California-based, beverage brand focused on providing functional hydration and energy products designed with health-consciousness and performance in mind.
The Product: GLOW's main product lines consist of:
GLOW Hydration - a bottled sparkling water beverage with low calories,
antioxidants, and various vitamins & minerals. Flavors include ginger lemon,
mango apricot, and spicy watermelon, among others.
GLOW Energy - a variation of the sparkling water beverage with added
caffeination and other energizing ingredients.
The company has additional plans to expand into other product categories such as
waters, sports drinks, and canned cocktails. GLOW was founded in 2016.
The Business: GLOW's primary GTM strategy is predicated on selling product to grocery retailers, with the supplementary channels of direct-to-consumer and on-premise (night clubs, restaurants, commercial offices, etc.).
The company is on the verge of launching a marketing campaign (GLOW Talent) that will seek to utilize influencer-led channels to market their products to a collective follower base of approximately 1BN - committed influencers/celebrities include Kylie Jenner, NFL star Dak Prescott, and rapper Lil Baby.
Traction: GLOW has generated revenue of $2.3M for the trailing 6 months ended March/2022 and generated a gross profit and associated margin of $661.3K and 28.4%, respectively. GROW is projecting 2023 FYE net sales and gross profit of $99.6M and $37.4M, respectively.
Celeb Investors: Kylie Jenner, Kris Jenner, Carmelo Anthony, Dak Prescott, Dj Khaled, Lil Baby and more.
Competitive Landscape: The functional water industry is fairly competitive and growing, in part due to differences in format, flavors, packaging, price, etc. The key players in this space include The Coca-Cola Co, Pepsico Inc. Keurig Dr. Pepper Inc, Danone SA, and Nestle SA. These larger CPG firms tend to operate in the market via a combination of in-house developed products (such as Pepsico’s Soulboost line) and more commonly via acquisition of up and coming brands (for ex. Nestle’s acquisition of Essentia Water in 2021 for ~$1.0Bn).
As a result, major competitors also tend to be a source of exit liquidity for investors, as factors such as market niche penetration, celebrity endorsements, and brand equity in the mind of consumers incentivize growth via acquisition vs. attempting to replicate success internally.
Market Opportunity: The US market for the sparkling water industry was approximately $3.6Bn in 2020 and is expected to grow to $7.9Bn1 by 2028. GLOW's products also cross over into the enhanced water and functional beverage markets, collectively worth $121.8Bn in 2020, with projections to grow to $173.2Bn by 20252. Key drivers to this market include:
Changing consumer preferences driven by COVID-19, towards healthier, immune-forward products;
Longer term shifts away from sugary, carbonated beverages to hydration-focused carbonated and non-carbonated beverages, particularly among millennial and gen-z populations in developed nations.
Terms: GLOW Beverage Inc.'s ("GLOW") $5.0M financing round is structured as a Convertible Note with a $50.0M Pre-Money Cap and 20.0% Discount Rate.
Website: https://drinkglow.com/
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