The Californian company Flying Ember had established itself as the healthiest alcohol and cocktail brand since its first line of products: handcrafted hard kombuchas, drinks that have an alcohol level ranging from 4.5% to 7, 2% (a little higher than beer) but they are characterized by being dry fermented sparkling wines, with zero grams of sugar and carbohydrates, and they only use organic ingredients from the USDA (United States Department of Agriculture).
This venture, which was born in 2017 by Bill Moses, launched several rounds of investment for its expansion. It began with a round of USD 25 million in 2019, which was followed by a series B in August 2020, where the Santo Domingo family participated with an investment of USD 10 million within a total of USD 35 million.
The investment was recommended to the Santo Domingo family by Quadrant Capital Advisors, an entity that advises them on their investments and indicated that the brand was strategically positioned to revolutionize the alcoholic beverage market with innovative product lines aligned with consumer trends. . Flying Ember executives welcomed the Santo Domingos, praising “their global reach and deep knowledge of the alcohol category.”
Kombucha is a drink made from fermented sweetened tea and often flavored with fruit juices, which features natural probiotics, organic acids, enzymes, minerals and vitamins. Hard kombucha is fermented longer than “non-alcoholic” kombucha, resulting in a drink with a similar alcohol content to most beers. Gently bubbly, this drink is highly probiotic, helps digestion and is very detoxifying.
Flying Embers has taken advantage of a global trend and especially in California towards environmentalism and health, they serve a more conscious drinker, and with their product they blur the line between alcoholic beverages and healthy and wellness drinks. The portfolio includes hard kombuchas in flavors such as watermelon, basil, cucumber, juniper and black cherry; hard seltzers in botanical or spicy flavors (guava-jalapeño, watermelon-chili); wine spritzers (canned fermented sparkling wines in white, rosé and red).
In January 2022, the company carried out another investment round, C, where it managed to add USD 20 million, thanks to the fact that it showed a growth of more than 175% in 2020 and 50% in 2021, the year in which the category of beer decreased by 3% on the market.
The Santo Domingos’ bet proved effective, in less than four years, on March 4 of this year, Flying Embers was acquired by JuneShine Brands, another strong kombucha company located in San Diego, California. Before the merger, JuneShine had about twice the sales revenue of Flying Embers, but its reach is different: Flying Embers has a larger presence in the South and East Coast, while JuneShine’s sales are strongest in California and West. The equity deal will give JuneShine 63% of the strong kombucha market in the United States.
The Santo Domingos had already made a foray into high-end wines when they paid USD240 million for 20% of Château Pétrus, the most prestigious vineyard in Bordeoux, which makes wines that cost up to almost $20 million a unit. Colombians are recognized for being connoisseurs of the beverage sector where they have been for three generations, although initially it was only in the beer business.
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