(L-R) Lukas Passia and Vincent Efferoth
Alcoholic tea firm NOVELTEA has overfunded its latest crowdfunding target by 105% to raise over £306k from more than 370 investors.
The CrowdCube campaign forms part of NOVELTEA’s second funding round of investment towards the development of its new flavour and overseas expansion.
Specialising in tea mixology, NOVELTEA develops creative tea and alcohol blends, that are exported around the world. The company will use the money raised through crowdfunding to grow the brand’s product portfolio and export into USA, Australia, Japan, France, Switzerland, Austria and Singapore.
Two German entrepreneurs, Vincent Efferoth & Lukas Passia, launched NOVELTEA in April 2017, and it quickly became the first brand to cold-brew and infuse tea with a matching spirit of either gin or rum.
Their concept began by blending the two British staples of tea and alcohol to produce a ready-to-drink (RTD) brew that brought together tea and spirit into one premium alcoholic blend that could be served either hot or cold.
NOVELTEA counts Harrods, John Lewis, Fenwick, National Trust and Premium Plaza Lounge on its list of stockists, as well as exporting to Germany, Hong Kong and China.
NOVELTEA operates in the highest growing sectors of the £30b tea industry: green, blended and flavoured teas, which account for 29% of UK value sales (up from 24% in 2013) and strive to lead global alcoholic tea product development. In 2017, gin sales in the UK rose by 26% and whisky sales by 10% compared to 2016.
In a bid to capitalise on growing demand for alcoholic teas and cold-brewing techniques, NOVELTEA is planning to launch its third flavour – The Tale of Oolong— in September 2018, which infuses premium oolong tea with Scotch whisky as part of its commitment to delivering more consumer options in the ready-to-drink alcoholic tea category.
Alan Balfour, chairman of Tea Venture Limited said: “In our first Crowdfunding campaign, we overfunded in 5 days and received investment from around 300 individuals. Less than a year later, we are on track to achieve revenue growth of 380% and are ahead of our cash-flow budgets. We are now taking on growth capital and will continue making sure that every penny is invested wisely”.
Dr. Alan Rutherford OBE, advisor of Tea Venture Limited said, “NOVELTEA has such strong appeal because it offers disruptive innovation, bringing tea, the most widely consumed beverage in the entire world after water, to the alcoholic drinks market. That it in itself is not enough to guarantee success but it is when it is backed by its founders Vincent Efferoth and Lukas Passia”.
NOVELTEA is on track to achieve 380% revenue increase in their second trading year, while being ahead of cash-flow forecast, to become profitable during their third trading year.
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