UK soft drinks producer Dalston’s has raised £850,000 ($1.1m) in fresh investment to support its domestic expansion.
The group has also used part of the funding to bring in a new managing director to lead what it described as “the next phase of its growth”.
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Dalston’s, founded in 2012 by Duncan O’Brien, says it is “offering a modern alternative to the increasingly ultra-processed soft drinks category”.
The London-based business sells its fruit flavoured sodas sold in cafés, hospitality outlets and retail chains in the UK, including Asda, Ocado and Whole Foods.
The latest funding round was led by private equity firm Sorven Capital, who took a minority stake in the business, founder O’Brien told Just Drinks, adding that Dalston’s remains “founder-led”.
“I and our dedicated pack of angel investors continue to hold the majority of the business, with Sorven coming in as a highly supportive minority investor,” he said.
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By GlobalDataIn a separate statement, the fruit sodas maker said the capital will be directed towards building its brand presence, with a focus on scaling up marketing activity, partnerships and shopper-facing initiatives in the UK.
The funds will also help “intensify its focus on retail performance, supporting stronger rate of sale across existing retailers and unlocking new distribution opportunities across grocery, foodservice and hospitality”.
O’Brien told Just Drinks the raise will primarily underpin domestic growth rather than an immediate international push.
He added: “Over time, we’ll also look at selective opportunities in other markets where the brand travels well, but the near-term priority is very much about building a strong, sustainable platform here in the UK.”
Commenting on the latest fundraise in the company’s statement, O’Brien said: “Not a cake-walk to begin with, raising investment for challenger brands has been even more challenging in recent years. I can’t thank our angel investors enough for believing in Dalston’s from our first brew yard through to where we are now and I’m thrilled we’re now welcoming the significant new investment needed to strengthen and further grow nationwide.”
Part of the money is being used to grow headcount, and some of it has already gone towards appointing a new managing director.
While Dalston’s did not name the appointee in its initial announcement, a post on LinkedIn confirms that Sally Rose has joined the company this week as MD.
Rose joins the company from vertical farming business GrowUp Farms, where she worked in commercial strategy director and marketing director roles.
From 2013 to 2024, she also worked at smoothies and juices maker Innocent in senior insight and strategy positions.
When asked why Dalston’s had picked Rose to lead the group, O’Brien told Just Drinks: “Senior leadership talent of her calibre is highly competitive, particularly in the current market. Sally stood out not just for her track record, but for how closely she aligns with where Dalston’s is heading next.”
O’Brien said there had been no standalone MD immediately before Rose’s appointment.
