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Lyre's wants to sell Americans on clear-headed drinking with their faux bourbon and other mocktail spirits. The Australian-based company set up North American offices in Los Angeles last year and has aggressively sought to make a mark in the Golden State. And it seems to be working; the company just raised $11.5 million.
Lyre's has hitched its success to the growing "sober curious" movement, focusing on health-conscious consumers with its dry month challenges. About 60% of the company's sales come from the United States and it's increasingly looking for tastemakers in Southern California to help build its brand.
"We believed that there was significant latent demand in the U.S. market for consumers looking for a sophisticated non-alcoholic alternative," said Christian Butler, Lyre's Los Angeles-based senior vice president told dot.LA. Some bars in Los Angeles have adopted the mocktail, a trend that he hopes will influence the rest of the country.
Founders Mark Livings and Carl Hartmann created the non-alcoholic drink line in 2016 catering to those who might be left out in social settings where booze is flowing. Lyre's mission is driven by a focus on health and lifestyle, allowing consumers to enjoy the best of both worlds while being responsible.
"Our business anticipates and matches the trends of the consumer and culture and our current product innovation is being developed to match alcohol spirit flavors and styles," said co-founder Livings in the announcing statement.
The seed round will be divided into three tranches and be distributed over the next 12 months. The company is backed by Doehler Ventures, DLF Venture, Maropost Ventures with several European, American and Australian family offices and also HNWI participating.
Lyre's has a line of 12 fake alcoholic beverages, from amaretto to gin and rum, that are sold at Bevmo, Amazon, at some Los Angeles bars and directly online. The drinks aren't cheap at $35.99 for a 700 ml bottle.
Although the pandemic depressed sales, the company said since January it has seen a monthly 400% recurring revenue growth. The recent raise will allow Lyre's products to expand their market reach as they set to launch an Italian Spritz in the U.S. market later this year and develop a line of ready-to-drink mocktails like gin and tonic or bourbon and cola.
According to a report by Nielson, the non-alcoholic beer market had an increase of 3.4% in the last year. Lyre's also looking to compete by expanding to other countries.They are currently available in Australia, New Zealand, the United States, the United Kingdom, Hong Kong, Singapore, China and throughout Europe.
"The next year demarcates our business evolution from a start-up to a true multi-national beverage company, with manufacturing in multiple, global locations, compliance for new markets, and continued recruitment firmly at the top of our task list," said Hartmann in the announcing statement.