Modern Retail: “After a slow fundraising period, multiple new CPG funds launch to deploy fresh capital for brands”

Selected Excerpt from Modern Retail by Gabriela Barkho — September 22, 2023

Mike Warren, Alethia’s founder and managing general partner, said that the fund comes at a time when beverage companies are finding it difficult to extend their runways. Alethia founders include beverage and tech industry folks like Taylor Foxman, founder of spirits industry group The Industry Collective, and executive Brian Stolz, among others.

“The alcohol and non-alc category is busy, and there are so many brands out there right now,” Warren said. “We’re looking for not just quality products,” he said, but founders with industry skills that go beyond marketing, such as ingredient sourcing and efficient distribution. Like many venture capitalists, Warren said the firm wants to see a clear growth trajectory and a pathway to profitability when investing, along with the company’s ability to monetize or exit within three to five years.

Alethia’s first set of investments included canned wine brand Maker Wine and ready-to-drink cocktail Kove. Another segment of the fund will go to backing e-commerce solutions, such as text-to-pay e-commerce provider Authvia. “We also have a partnership with video commerce platform NBTV to get our brands on their spirits and golf networks,” Warren said. “This will give them [brands] direct-to-consumer distribution in 48 states.”