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RTDs are the next big investment opportunity, with global sales expected to grow by a CAGR of 20% over the next 10 years

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Sponsored by Ace + Freak

The “craft revolution” has changed the beverage industry permanently, leaving its mark on everything from beer, think Camden Town to Brewdog, or tonic water from Fentimans to Fever Tree. Through providing better quality and more accessible products, these new FMCG brands have been highly successful in disrupting their markets, taking a large share of profits with them as they continue to meet the changing needs of the consumer. 

Industry experts point to the Ready to Drink (RTD) market being the next high growth sector riding the craft revolution wave,with 60%+ of the current RTD cocktail market composed of Millennials and Gen Z’s, and the former about to reach their spending prime. These consumers are tech natives, growing up with ‘on demand’ and convenience as key needs but without wanting to compromise on their quality, values or the consumer experience. 

The $20bn RTD (ready to drink) cocktail market witnessed substantial growth this year at 43%, even more impressive given the collective decline of 8% in global alcohol sales, largely due to government restrictions placed on events and hospitality during the pandemic. Moreover, in the first 2 quarters of 2020, the UK market grew 86% alone, whilst the EU & US Markets are expected to be worth £7.1bn and £6bn respectively by 2026, with the global market for RTD cocktails predicted to hit £146bn by 2030.

Ace + Freak aim to be at the forefront of this next wave of disruption, creating internationally awarded, craft RTD cocktails in both alcoholic and non-alcoholic format, made of all natural, bespoke ingredients, for a generation of drinkers that give AF*.

With their unique branding and award winning flavours, partnered with an ethical and sustainable culture, Ace + Freak are positioned perfectly in the market. With funds allocated to move production to a high speed canning facility in 2021, reducing associated costs by >50%, as well as scaling their online offering, sales and marketing capabilities, they are looking to gain significant share in a rapidly growing and underserved market.

Ace + Freak are offering a rare opportunity to participate in their growth as they look to execute on 2021’s plan to scale across the UK, in select international markets, and develop new products. Through their latest funding round, they have recently launched a campaign to raise £250k investment – a target they have nearly reached.

To date, Ace + Freak have received rave reviews from customers and press alike with features in The Sunday Times, DAZED and Time Out, to name a few. They’ve received 6m+ Social media impressions and recently won “Best in class RTD cocktail” in the first canned challenge taking place in the USA, beating established competitors such as Cutwater spirits.

So what’s driving this rapid growth right now? 

Covid-19 has obviously had a massive effect on how we socialise and on drinking behaviours, with people looking to enhance their drinking experience outside of traditional environments such as restaurants, pubs and bars. According to a recent Mintel report, 55% of Millennials and Generation Z prefer to drink at home. Allied, with this, these target consumers are more discerning of taste, mindful about their purchasing and demanding of lower price points for quality flavours and ingredients, all creating a perfect storm of growth for RTDs and brads ready to meet these trends.

As better quality, naturally sourced, healthier, and more exciting ingredients, can be canned and enjoyed outside of the traditional environments, this market is expected to continue to outpace other alcohol categories in the near future, as well as gaining a share of discerning beer, wine and spirits drinkers.

All of this creates a compelling high growth narrative, and if you are looking for an exciting investment opportunity – don’t miss out, join a community of over 100 investors hoping to help shape the future of Ace + Freak and the RTD industry.

Potential returns at exit are high, with a strong track record of larger industry players acquiring emerging or successful disruptors to enhance their portfolios. Beverage businesses with <£10m revenues are exiting at 8-10x multiples revenue and craft breweries are exiting on average 31.9x EBITDA.

If you’re interested in learning more, request a copy of the investment deck or if you’re ready to dive right in  – join Seedrs campaign HERE

* Target market phrase for caring a lot!

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