RMB consortium invests in South African alcohol-free drinks company
Rand Merchant Bank (RMB) has partnered with AB InBev’s corporate venture capital arm ZX Ventures to take an equity stake in alcohol-free South African drinks company The Duchess, creator of the world’s first alcohol free gin & tonic that’s proving globally popular.
The Duchess launched in 2016 and has since achieved multinational success by selling over 8 million bottles.
In 2020, it expanded its range to launch alcohol free wine spritzers to target the underserved alcohol-free wine market.
Catherine Townshend of RMB’s growth capital solutions team, which specialises in funding and advising high growth companies said, “This investment represents a great opportunity to build on The Duchess success story with global momentum in the ’better for you’ beverage innovation category. We are pleased to support an innovative and proudly South African team to take a special home-grown product beyond our borders and share it with the rest of the world.”
The Duchess is now available in seven countries, including South Africa, The Netherlands, Belgium, Australia and the UK. Over 50% of its sales already come from export markets.
The Duchess founder Johannes le Roux said that there is a fast growing, global demand for non-alcoholic drinks. “The Duchess is proving to be an international favourite with health and wellness minded people who simply weren’t satisfied with sparkling water or sugary soft drinks as alternatives to alcohol. People have become more conscious about what they put in their bodies.”
Daniel Obaseki, investment partner at the ZX Ventures EURAF Beverage Fund said, “We are excited about the opportunity to partner with RMB and are confident that joining forces will enable us in our mission to empower entrepreneurs to unlock growth in South Africa with both capital and strategic expertise.”
ZX Ventures, the corporate venture capital and innovation arm of AB InBev, first backed The Duchess in 2019. ZX Ventures has strong networks and deep industry knowledge to compliment the Duchess team, and partnered with RMB because of its financing know how and access to African networks.
The Duchess is the first co-investment between RMB and ZX Ventures.
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