US-based energy drink start-up Lucky Energy has raised $25m in its latest Series B funding round.
The round was led by private equity firm Paine Schwartz Partners, which owns the Californian juices brand Suja Life.
Existing investors alongside new backers such as venture capital firm Joyance Partners and family offices North Fifth Services and Sequel also participated in the round.
In a statement, Luck Energy said the capital injection will “fuel” its growth in the US.
The company will use the funds to support its retail expansion and bolster national and regional “partnerships”. It said the money will also go towards hiring and “increasing marketing efforts”.
Lucky Energy is currently available in more than 15,000 US retail locations and plans to expand into Walmart, Sheetz and Cumberland Farms stores throughout the country next month.
The group told Just Drinks it is expecting to be sold in around 35,000 retail locations next year.
Its portfolio features a range of flavoured sugar-free energy drinks. Its SKUs include Son of a Peach, Orange Drizzle, Red Ryder Punch, and Bodacious Berry.
Though the US remains its primary focus, Lucky Energy told Just Drinks it is starting to test “select” global markets.
“We’re building the company with a dual-path strategy in mind. The global energy drink market is a $100bn opportunity, and because the brand already resonates strongly in territories like Puerto Rico and the US, we’re exploring where else that momentum can translate.”
The company said it also has plans to head to Jamaica.
Alongside the new investment, Lucky Energy has also added Paine Schwartz Partners operating directors, James Brennan and Bob DeBorde, to its board.
Brennan is the founder and CEO of venture firm Enlightened Brand Ventures, while DeBorde is the chairman of Suja Life and natural supplements maker Promix Nutrition. Lucky Energy’s board already features Dan Ginsberg, former CEO of Red Bull North America.
“By combining great taste with clean, functional ingredients, the brand is positioned to lead the next wave of growth in the category,” DeBorde said.
The latest fundraise brings Lucky Energy’s total amount raised to date to $63m.
In June, Lucky Energy Drinks secured a “six-figure” investment from private equity firm InvestBev, which the drinks firm said fits its plan to expand into “fast-growing” non-alcoholic categories.
This followed its $14.2m raise in March, led by venture capital firm Maveron and saw the participation of DMG Ventures, a VC fund backed by UK media group Daily Mail and General Trust.
Lucky Energy currently sells in the US, with Richard Laver remaining the majority shareholder. It partners with third-party manufacturers, including DrinkPak and Polar.
It has 50 full-time employees and said it plans to keep expanding as the business “scales”.
Formerly known as Lucky F*ck, the company received $4m in seed funding from Imaginary Ventures in December 2023.
