Driving the growth of seltzer-water in the UK and Europe: a closer look at why we invested in DASH
Luke Edis shares why we believe DASH is such a compelling brand with the opportunity to become a category-defining product.
At the beginning of the year, we announced a new addition our U.K. portfolio: DASH Water is a zero-sugar, zero-calorie seltzer company. A leader in the UK market, it is particularly well known for infusing wonky fruit in its drinks — which was the star of a cheeky advertising campaign last year!
We have seen significant and exciting innovation in the UK consumer beverage sector over the last year, and in addition to our recent investment in Lucky Saint — the leading non-alcoholic beer brand — we are excited to back another breakthrough brand facilitating a healthier lifestyle for consumers across the country.
In this article, I explain four factors that made us particularly excited about our investment in DASH and convinced us that this is a business with tremendous potential for growth.
1. A leader in the UK seltzer market with vast potential for international growth
Seltzer is a sparkling flavoured water that does not have any calories and does not contain any sugars or artificial sweeteners. It is a multibillion-dollar industry in the US, where it is usually preferred over water and traditional sugary sodas.
As seltzers are made exclusively with natural ingredients, they are a product that can consumed more often throughout the day. They also tend to reach out to a wider customer base, particularly health-conscious, younger consumers, when compared with other soft drinks.
And yet, in Europe — and more specifically the UK — the seltzer market has yet to break through. But this is changing! And as the UK market leader, DASH has a tremendous opportunity to lead this exciting category’s rise in the UK and Europe.
2. A zeitgeist product tapping into demand for more sustainable, healthier living
Alex Wright and Jack Scott, DASH’s co-founders, both hail from farming backgrounds. Confronted with the fact that nearly half of the fruits and vegetables produced worldwide going to waste every year, Alex and Jack felt a personal connection to finding a solution to tackle this huge problem.
DASH was founded in 2017 and immediately started using bent, crushed, knobbly, and misshapen fruits to infuse into its seltzers, thereby enabling farms to find a home for produce that wasn’t going to make it onto supermarket shelves.
Alex, Jack, and the team rapidly built a brand that reached out to UK consumers searching for a healthy and tasty alternative to sugary soft drinks. This brand was coupled with excellent sustainability credentials: all of DASH’s products are locally produced; the company achieved B Corp certification three years ago; and it frequently partners with organisations such as Feedback, The Felix Project and the London Soup Kitchen to support local communities.
At Beringea, we’re passionate about backing entrepreneurs tackling the environmental challenges facing industries, cities, and societies. Social Value Portal, which provides organisations with a platform to quantify social and environmental impact, and Luxury Promise, which is seeking to drive the circular economy within the luxury industry, are two companies backed by Beringea that reflected this growing trend.
3. Making a big splash through its impressive distribution channels
DASH’s sustainably crafted seltzers are now available in more than 10,000 stores worldwide and it has secured partnerships with major retailers and distributors including Tesco, Sainsbury’s, Waitrose, Planet Organic, British Airways, and Starbucks.
Its range of drinks can also be purchased directly from its website, and customers have the option to subscribe for regular deliveries at a discount — these online channels have generated an impressive 61% of sales.
The growth of the company is easily on pace with market leaders, and it has demonstrated a 3-year compound annual growth rate (CAGR) of 94% and a 98% year-on-year growth.
With a clear ability to deliver growth across multiple channels, it is clear that DASH is a business with the potential to build on its early successes and go from strength to strength.
4. We love it — and we think you will too!
When it comes to investing in consumer brands, you’ve got to believe in the product — and you need to believe that it has an edge in the ever-competitive battle for customer loyalty.
After our initial meeting with Jack and Alex, we immediately stocked up the Beringea fridge with as many DASH flavours as we could get our hands on — within a matter of minutes, the cans were flying off the shelves! While we couldn’t quite get the team to agree on their favourite flavour, our (admittedly unscientific) consumer testing suggested we were onto a winner.
Try out DASH’s range of infused water by ordering your first can on their website here, and tell us which flavour you liked the most on our Twitter page!
