NEW YORK — Sweet Reason Beverage Co.. which sells CBD-infused sparkling water drinks, says it has raised $2.5 million to complete its seed investment round.
New York venture capital firm Lerer Hippeau led the funding round with participation from RiverPark Ventures, Max Ventures, and Subversive Capital, a premier cannabis investor via Privateer Holdings, alongside a strategic group of angel investors.
Launched in December 2018, Sweet Reason is based in NY and is a women-owned and operated beverage company.
Sweet Reason is currently available in over 200 New York and online retailers including Dean & Deluca, Westside Market, City Acres, Standard Dose, Inscape, and more. This new capital infusion will support company growth efforts through building a sales team, growing brand awareness and creating a community of health-forward consumers.
Sweet Reason offers three unique flavors – Grapefruit, Cucumber Mint, and Strawberry Lavender (Suggested retail price of $5.99).
Founder and CEO Hilary McCain drew upon her experience at the Boston Consulting Group, Maple Leaf Foods, Chobani, and Harvard Business School along with a strong network of food, beverage and cannabis advisors. Sweet Reason is a refreshing, naturally flavored sparkling water infused with a highly bioavailable, water-soluble CBD that is CO2-extracted from organic Colorado hemp. Representing a new paradigm in the CBD beverage space, Sweet Reason is purposefully formulated for consumers to experience the health benefits of CBD without the detrimental effects of sugar. Each 12 oz bottle contains no sugar, sweeteners, sodium, carbohydrates or artificial ingredients and is just five calories.
“Sweet Reason’s mission is to be the leading hemp and cannabis beverage company in North America. We are thrilled to have completed our first capital raise, led by Lerer Hippeau,” said McCain. “We have an incredible group of investors with deep consumer, cannabis and food industry expertise, which will help Sweet Reason bring the highest quality and best tasting CBD beverages to consumers across North America.”
“With Sweet Reason, we’re betting on a team that’s laser-focused on delivering superior quality and building a best-in-class brand,” says Lerer Hippeau’s Caitlin Strandberg. “Hilary’s deep domain expertise in the food industry as well as her passion for health and wellness will accelerate Sweet Reason into a category leader.”
“RiverPark Ventures has been evaluating the CBD category for the last few years and believes that beverage will be a leading delivery channel,” said Managing Partner Andy Appelbaum. “Sweet Reason has created a premium quality, natural product that consumers love. Hilary McCain is the perfect entrepreneur to tackle this new and growing category.”
Michael Auerbach, GP of Subversive Capital and leading cannabis investor, offered, “We believe Sweet Reason will emerge as one of the leading CBD-infused beverage brands in this rapidly developing space. Sweet Reason’s drinks are high quality, delicious, precisely dosed, and made from safe, tested, federally legal hemp-derived CBD.”