No Sleep Beverage has announced the launch of No Sleep Beverage Inc., a new platform company formed through the acquisition and roll-up of three high-growth beverage alcohol brands. The new entity represents the next phase of growth for No Sleep Beverage, expanding beyond venture investing and consulting into full portfolio ownership and operations.
At launch, the Company will include: Whiskey Del Bac (Tucson, Arizona), Nine Banded Whiskey (Austin, Texas), and Ume Plum Liqueur (New York, New York). The No Sleep team plans to selectively add complementary brands over time.
Nick Papanicolaou, No Sleep Beverage’s CEO, says “We believe the best way to invest in the beverage alcohol space is to roll up a portfolio of iconic brands, introduce efficiencies from the portfolio while professionalizing operations, and prepare them for exit when this industry has worked through the current down cycle.”
The genesis for the rollup concept came after recognizing a fundamental challenge facing startup beverage alcohol brands. “Selling costs are often the biggest barrier for a brand’s success,” says David No, No Sleep Beverage’s CFO “By sharing infrastructure across a portfolio, we create operating leverage and synergies that improve each brand’s path to profitability.”
No Sleep recognizes the importance of creating a portfolio where the brands can work together to grow their collective value, while addressing white spaces in the market. “The market is pessimistic about beverage alcohol,” notes CMO Charlie Rodman. “It’s harder at the moment, but there remain ample opportunities for consumer-centric brands that can build an emotional relationship with their audience.”
Papanicolaou adds “We are excited to partner with these three great brands and bring them our tested, data-driven approach to scale them to their full potential.”
The portfolio will initially focus on Phoenix, Tucson, Austin, and Southeast Florida, with select distribution in other markets.