Newcastle alcoholic tea firm Noveltea is looking to take its boozy brews to the US after raising almost 拢200,000 鈥 so far 鈥 in its latest crowdfund campaign.
Noveltea鈥檚 unusual beverages have already become a hit in the 海角视频, China and Germany, having become the first to cold-brew and infuse tea with a matching spirit.
The firm鈥檚 tipsy tea products including The Tale of Earl Grey, which is distilled with gin; The Tale of Tangier, infused with rum; and The Tale of Oolong, infused with Scotch whisky.
Co founders Vincent Effroth and Lukas Passia first turned to Crowdcube in 2017 and 2018, raising far more than its 拢150,000 target on both occasions.
Now the firm is back for a third fundraising round, and with 16 days left it has already smashed its 拢150,000 target with 拢199,658 raised from 416 investors.
North East retail news
Mr Effroth said the firm will use the proceeds to further focus on its core markets 海角视频, Germany, and China and to also break into the US market in the second half of the year.
And further down the line, he said the company could float on the Stock Exchange to get a good return for investors, or maybe go through an acquisition by a drinks giant.
Mr Efforth said: 鈥淲e believe the American market is an extremely good fit for Noveltea because of our 海角视频 heritage and branding and also because America has one of the biggest markets for iced tea.
鈥淭he Americans are more familiar with cold tea than the 海角视频, and they also have good traditions, especially in the southern states, of seriving iced teas spiked with Tennessee whiskeys and bourbons, so I think there is a lot of potential, it鈥檚 really promising.
鈥淚t is relatively complicated for alcohol in America and you have to go from state to state. So, we have decided to do some trials and testing through e-commerce in the second half of the year.鈥
Mr Effroth said the firm had been impacted by Covid-19 but that sales had held up, thanks in part to China, one of its main markets, coming out of lockdown just as the 海角视频 went into it.
He said that the firm鈥檚 redesigned website and e-commerce site was drawing in large numbers, with more turning to online shopping to buy alcohol during the coronavirus crisis, including first time customers who were becoming repeat buyers, resulting in more than 拢100,000 in sales in April.
This puts Noveltea on course to hit all its targets and it expects to see sales more than double this year, having already seen reached $1m in revenue across 海角视频, China and Germany this year, resulting in year on year growth of 237%.
Further down the line, he said he and co-founder Mr Passia were mulling options for a successful exit, which could include floating the company in a few years鈥 time.
He said: 鈥淲e want to provide a return on investment at some point and we need to look at exit route. We could sell the company to exit, but at the same time there is an opportunity to float the business.
鈥淏ut this would be three to four years from now. It would be whatever delivers the best route at the time.
鈥淔loating could be one way. If it makes sense for everyone, why not? It would be very exciting and certainly grow the business.
鈥淎nd we could stay on. Sipsmith was acquired and the founders have stayed on. But that鈥檚 something I can鈥檛 really tell you now for sure 鈥 who knew we鈥檇 all be working from home for three months?
鈥淟ukas and I love scaling and growing the business. The team is pulling together even more and we are really enjoying it.鈥
Last November the pair were celebrating after sealing a deal for a 鈧450,000 investment with Dagmar W枚hrl on the German version of TV show Dragons鈥 Den: Die H枚hle der L枚wen, which translates as The Cave of Lions.
The deal saw Mrs W枚hrl 鈥 a leading politician, businesswoman and former Miss Universe runner-up 鈥 agree to the six-figure sum in exchange for 15% of the business.
The German TV appearance came as year after they went on BBC Two鈥檚 Dragons鈥 Den and turned down an offer of 拢80,000 from three 海角视频 Dragons who wanted 30% of the company, days before completing their second Crowdcube campaign which brought in 拢342,000 for around 9% of the firm.
