As the momentum behind zero-proof drinks shows no signs of abating, leading non-alc retailer Boisson is taking steps to secure its place within the expanding category, bringing on a new CEO and announcing today that has received funding in a $5 million bridge round from Convivialité Ventures, the VC arm of Pernod Ricard, and Connect Ventures.
As Boisson’s new chief, Sheetal Aiyer, a former executive in startups and growth-phase CPG companies, will usher the company into its next era as an omni-channel platform, now equipped with more funding to fuel domestic and international expansion, strategic partnerships, and curated product collections.
As the principal and founder of Vik Charles Consulting, Aiyer has helped scale multiple companies including Cardinal Spirits, Eureka Heights Brewing Company, and Sixpoint Brewery. The new CEO has a longtime friendship with Nick Bodkins, founder and president of Boisson.
Bodkins described the transition as a necessary step in Boisson’s long-term ambitions of becoming a three-prong business: retailer, e-commerce site, and wholesale distributor.
“I think that Sheetal’s experience in the next stage of growth is something that I will be able to learn from as a founder, as we now think about what it looks like to go from here to three-times or four-times from here,” Bodkins said.
Boisson is part of a new generation of businesses growing the burgeoning no-and-low alcohol segment in the U.S. Non-alc beverage sales were about $510 million in the last 52-week period ending July 29, up 31.2% versus a year ago, according to NIQ data.
Since launching in NYC in 2021, Boisson has expanded to eight storefronts across New York City and California, in addition to growing its ecommerce platform, partnering with Drizly, and increasing its revenue 300% from 2021 to 2022, according to the company.
Bodkins will continue to oversee the long-term vision for the company as founder and president, and explore new opportunities for the business internationally.
“While we’re seeing tremendous growth here in the U.S., I think it’s really important for us as we think about what our footprint looks like as curators of this movement, to be able to have a better sort of pulse check on what’s going on everywhere else,” he said.
There are no specific plans to launch a store or e-commerce internationally yet, but Bodkins is aiming for the company to have a “better chest of available resources” for bringing international brands into the U.S. or vice versa. The expansion points to the company’s overarching mission to be a curator at the forefront of the non-alc movement.
While Convivialité Ventures invests in companies beyond Pernod Ricard’s traditional wine and spirits offerings, Bodkins argues that non-alc’s emerging relevance as an additive category to the alcohol industry was a factor in funding alignment. The venture arm backed another non-alc company, Sober AF, earlier this year.
“Boisson plays a key role in the fast-growing non-alcoholic category, by discovering and curating the best NA brands for consumers”, said Brandon Yahn, partner at Convivialité Ventures. “The company helps the leading NA brands expand their business across Boisson’s retail, ecommerce, and growing wholesale channels.”
The store’s other backer is Connect Ventures, an investment partnership between entertainment and sports agency Creative Artists Agency (CAA) and global venture capital firm New Enterprise Associates (NEA). The tech VC has funded startups such as Typeform, TrueLayer, Lifebit, Oyster and Kheiron.
For Bodkins, the next stage of growth is furthering its “verticalized approach to the market” and leveraging Boisson’s flexibility outside of the three-tier system to continue to sell direct to consumers, into bars and restaurants, and specialty grocery.
“We always had ambitions to grow beyond the traditional three tier system because we don’t have to participate in the three tier system,” he said.
Part of that expansion is continuing to be purposeful in their partnerships and how to advocate for the category, specialty grocery for instance where there’s a lens of discovery for consumers. The founder is skeptical on the rush to grocery by “factions within the category.”
“The grocery teams are reliant on a gigantic CPG machine that has been developed over a long period of time, and it’s a lot more about low prices, margin and a focus on four-foot sections,” he said. “I think we are still in the second inning.”