After seeing a ton of venture capital investment flow into independent beverage startups recently, it was time to take a step back and see if this kind of company actually made sense as a venture investment.
For one, the competition for space on grocery store shelves is fierce, eclipsed only by the fact people are finicky. The U.S. Beverage Manufacturing and Filling Locations Database contains nearly 2,500 alcoholic and nonalcoholic beverage manufacturers making everything from beer and soft drinks to coffee and 10,000 flavors of fizzy water.
Within the whole beverage sector, functional beverages grew in popularity over the past five years as consumers sought out better-for-you drinks. Most of them include add-ins like vitamins, probiotics and electrolytes and boast lower sugar content and more natural ingredients.
This market is also growing fast: Precedence Resea …
