NEW YORK — Cloud Water Brands, a New York-based functional beverage startup, raised $2.7 million in a seed funding round.
The round was led by Don Lockton of The Lockton Co., Roger Silverstein of Silverstein Properties and Bruce Nierenberg, former Glaceau board member and founder of B.I.N. Sales and Marketing. Actors Liev Schrieber and Malik Yoba also participated in the round, along with National Hockey League stars Adam Fox and Scott Mellanby.
The new funding follows the launch of Cloud Water + Immunity, a line of immune-boosting sparkling beverages. Featuring 100% of the recommended daily vitamin D and zinc allowance, the product comes in blood orange-coconut, grapefruit-mint-basil and blackberry-lemon-rosemary flavors. The immunity beverages joined the company’s existing line of Cloud Water CBD beverages, which blend natural ingredients and botanicals with 25 mg of bioavailable CBD.
Cloud Water Brands will use the seed funding to expand both product lines in the retail and direct-to-consumer channels.
“Despite the economic impacts brought on by the pandemic, we were able to grow the business by over 300% in 2020,” said Marc Siden, co-founder and chief executive officer. “With a handful of powerhouse names and experience now behind the brand, and a national distribution network, this looks to be Cloud Water Brand’s breakout year.”
The launch of Cloud Water + Immunity speaks to consumer demand for more holistic healthy living options during the pandemic, he added. The product currently is available in 1,500 locations and is expected to be in 3,500 locations by the end of the year.
“Our investors loved that we were not only able to navigate the pandemic, but that we innovated a new non-CBD product line ripe for the times and beyond,” said Carol Dollard, chief operating officer at Cloud Water Brands and former COO of The Coca-Cola Co.’s Vitaminwater business. “Our excitement continues for our CBD line, and the promise of a regulatory framework that would allow for aggressive expansion as well.”