They've been one of the most innovative and widely discussed product types of the past three years, but where is the investment market for ANA brands heading? While ANA is more established than it was just a few years ago, brands are still competing for a small pool of potential investment, and straddling the bev-alc and CPG funding landscapes. For Convivialite Ventures, the venture arm of Pernod Ricard, RTDs (including Ghia and AF Drinks), have been the focus so far because the convenience factor brings value to the brands, said partner Brandon Yahn. - But it took a while for the firm to board the ANA train because of the quality of products early on.
- Now, the firm is still evaluating which type of approach – a unique product or a direct alcohol replacement – is better.
Even though Kin Euphorics has raised institutional capital, CEO and founder Jen Batchelor is currently crowdfunding. She’s not the only leader in the space doing it. With new legislation and platforms making campaigns easier, Batchelor sees it as an opportunity to co-build into a new chapter of ANA 2.0. “I think it’s about time that we had this moment of not reckoning, but reevaluation. What do customers actually want? How have they changed after a global pandemic? And how can we serve them better?” she said. The American ANA market is about five years and $4 billion behind Europe, said Dan Gasper, managing partner of Nex-Drinks Partners, and that’s good context to look at what’s next. We saw many brands bloom through DTC during the pandemic and later in niche retail, and now are getting into mainstream retail. Unlike in Europe, many brands have skipped the on-premise until now. “Before you explain a brand, you have to explain a category and that’s what the on-trade can be really good at and is probably a pretty fertile place to do that now,” Gasper said. But that all requires capital. In the meantime, brands should focus on velocity and profitability, and be laser focused on their consumers, said the panelists. Watch the full video. | 
