SipMargs returns after $3m backing
Ready-to-drink (RTD) Margarita brand SipMargs is relaunching following a US$3 million investment by Palm Tree Crew and Alix Earle.
SipMargs, led by CEO Justin Nabozna, has finished a funding round, enabling the relaunch of the sparkling Margarita brand. The investment was spearheaded by Palm Tree Crew, a global live entertainment, lifestyle, and hospitality company co-founded by Kygo (Kyrre Gørvell-Dahll) and Myles Shear. Amplified by social media influencer and host of Hot Mess podcast Alix Earle, a new investor and brand partner, the strategic funding is said to mark a new era for SipMargs and its mission to bring 'high-quality, fun, and convenient' cocktails to a new generation of consumers. Shear said: “We’re thrilled to back SipMargs as their lead investor for this exciting period of growth. We are honoured to partner with Alix and the rest of the SipMargs team. We have very exciting things coming.” The transformation will feature a new leadership team, an enhanced recipe, upgraded packaging and a stronger market positioning. Palm Tree Crew and Earle, the largest individual investor, join the existing investor group, Speight Family Ventures. They’re accompanied by a roster of strategic backers, including Michael Rubin, CEO of Fanatics; Aoki Labs by Steve Aoki; John Green, former executive chairman of Founders Brewing; Jake Paul's VC firm, Anti Fund; PressOn Ventures; Brad Garlinghouse; Braxton Berrios; and Blondish & Gryffin. Earle said: “Being involved in the alcohol space is something that has always interested me, but it was all about finding the right fit. I knew from the second I took a sip – pun intended – that I wanted to get involved. "There may have been larger, more established companies looking to collaborate, but pushing myself to take risks and invest in a start-up that I believe in felt like a great next step to accelerate me in my entrepreneurial efforts. When I commit to something, I give it my 110% effort and trust, so I’m very excited to get everyone trying SipMargs.” The relaunch SipMargs comes in five flavours: classic, mango, coconut, mezcal, and spicy. The line is crafted with premium Tequila blanco from Jalisco, Mexico, real fruit juice, real cane sugar, natural flavours, and sparkling water. According to the brand, the formula was improved by using fruit juice and premium Tequila, and it features updated branding and packaging. Each 355ml can has an ABV of 5% and contains 130 calories with six grams of sugar. The RTD cocktails are available in four-packs for US$10.99 and variety packs of eight for US$18.99. Nabozna commented: “We’re excited to embark on this new chapter of SipMargs at a time when Tequila is becoming more popular in the ready-to-drink market and consumers are looking for more variety in their canned cocktails. “Alix has already been such a creative and hands-on brand partner and investor; we are so excited to work with her on building the brand and business. Additionally, Palm Tree Crew brings expertise in building consumer and lifestyle brands and has had an immediate impact beyond being our lead investor in this round. We believe that SipMargs is not just a great cocktail, but can be a brand with personality, energy and a real community behind it.” The new line will be available from 17 March on the brand's website, as well as on Gopuff in New York and Florida and at select retailers in Florida, New York, Connecticut, Massachusetts, Virginia, and Michigan. SipMargs retail rollout is supported by a new national distribution partnership with Southern Glazer Wine and Spirits. The RTDs will also be available at Palm Tree Crew’s Florida-based hospitality venues, Palm Tree Club Miami and Palm Tree Club Orlando.
