MiC’s Spencer Matthews’ low-alcohol drinks start-up Clean Co raises £7million to expand
Spencer Matthews posing with one of the company’s low alcohol drinks (Clean Co)
(Clean Co)In the latest sign the low-and no-alcohol drinks sector continues to grow, a low-alcohol drinks start-up founded by Made in Chelsea star Spencer Matthews has raised £7 million to expand around the world.
Clean Co, which bills itself as having “cheeky-luxe” positioning and wants to start a “clean drinking revolution”, uses traditional distilling methods to create low alcohol spirits - including rum and gin with 1.2% ABV.
The firm revealed it secured the funding from high-profile investors including Ursula Burns, a board member of Uber and former non-executive director at drinks giant Diageo. Others include Simba Sleep co-founder James Cox’s investment firm, Stonebridge.
Matthews launched the start-up in late 2019 - supported by chairman Justin Hicklin, an ex-director of the Gin Guild - in the hope of capitalising on health-conscious consumers growing in number.
They have since seen around 50,000 customers, and sell via their website and via stocks in Sainsbury’s and Holland & Barrett.
The reality star-turned-entrepreneur, who has been sober since 2018, said: “Nobody wakes up saying ‘I wish I drank more last night’.
“Anyone can have a good reason to avoid or reduce their intake of alcohol. After a sub-par 2020, many of us will start 2021 with a sore head, coupled with fresh resolve and ambition to change destructive habits.
“We want more drinkers to be aware that there are choices when it comes to drinking high- or low-strength alcohol.”
In a statement, Clean Co said the new “funds will also allow for ‘significant’ marketing investment in the UK to increase brand awareness”.
The company has just launched its first canned cocktail products, and is releasing a vodka later this year. It also plans to spend the new cash on growth around the UK.
Market research firm Kantar recently valued the UK’s low and no alcohol market at £143 million, with sales growing by £17.2 million over the last 12 months. The largest increase was found to have been in spirits, which were up by 112%.
Clean Co said it has already seen a 580% sales boost this year as a result of locked-down consumers attempting Dry January.
It comes after major drinks giants reported higher alcohol-free beer sales in 2020.
Heineken and Carlsberg have both created alcohol-free versions of their flagship beer labels, Belgian AB InBev has pledged that low and no-alcohol products will make up 20% of its drinks portfolio by 2025, and drinks giant Diageo recently launched a booze-free version of Guinness in Britain and Ireland.
Danish brewer Carlsberg - behind the Tuborg and Kronenbourg brands - reported a 29% growth across its alcohol-free brews in the three months to September, compared to the same period last year.
The group said the growth was "supported by an increasing health focus among consumers", with the strongest European growth seen in France, Russia, Ukraine and Poland.
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