# Sweet Reason Beverage Co.

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/sweet-reason-beverage

- Industry: Consumer Products
- Headquarters: TORONTO, Canada
- Website: www.drinksweetreason.com
- Total disclosed funding: $2.5M
- Latest round: Seed (Jul 2, 2019)
- Investors on record: 5

## About

Sweet Reason Beverage Co. crafts innovative social tonics that blend hemp-derived cannabinoids with natural flavors, offering a refreshing alternative to traditional alcoholic beverages, targeted at health-conscious consumers seeking mild psychoactive experiences.Founded in 2018 in Toronto, Canada, Sweet Reason Beverage Co. is a beverage company specializing in tonics infused with hemp-derived cannabinoids. The founder, Hilary McCain, has experience in the beverage industry, and the company has received funding through two rounds, including a SEED round in September 2022, which raised USD 2.50 mn led by Lerer Hippeau Ventures, with participation from other investors such as Max Ventures and RiverPark Ventures. Following this round, on September 27, 2022, SOCALI Manufacturing, Inc. acquired Sweet Reason Beverage Co. to enhance its product offerings with non-cannabis-infused sparkling water.Sweet Reason Beverage Co. specializes in social tonics that combine THC and CBD with various natural flavors. Their offerings include sparkling beverages in flavors like Yuzu, Elderflower, and Blood Orange, designed for consumers seeking a low-dose THC experience without the hangover associated with alcohol. Targeted at adults aged 21 and over, these drinks are positioned as alternatives for social interactions and relaxation, appealing particularly to markets in North America and select international regions.The company primarily operates through direct-to-consumer sales and subscription models via its online platform. Customers can purchase individual beverages or starter packs at discounted rates, along with subscription plans that include perks such as free shipping and discounts on initial orders. The brand maintains a commitment to high-quality ingredients, emphasizing transparency and consumer education. While specific pricing details are not disclosed, the company is positioned as a premium brand in the social tonic market.Following the acquisition by SOCALI Manufacturing, Inc. in September 2022, Sweet Reason Beverage Co. aims to expand its product range and enter new markets. The funds raised during the SEED round will be utilized to develop new non-cannabis-infused sparkling waters and explore additional distribution channels. The company plans to target specific geographic regions for expansion, although details on these markets and projected timelines have not yet been disclosed.

## Funding rounds

- Seed, Jul 2, 2019, $2.5M — Lerer Hippeau Ventures, Privateer Holdings, RiverPark Advisors, Max Ventures, Subversive Capital

## Investors

- Lerer Hippeau Ventures — Seed
- Privateer Holdings (https://capitalatlas.ai/funds/privateer-holdings) — Seed
- RiverPark Advisors (https://capitalatlas.ai/funds/riverpark-advisors) — Seed
- Max Ventures (https://capitalatlas.ai/funds/max-ventures) — Seed
- Subversive Capital (https://capitalatlas.ai/funds/subversive-capital) — Seed