Dunelm Partners’ third investment is to back young entrepreneurs Oli Clements (27) and Matija Pisk (26) to introduce hard seltzer to first the UK and subsequently, the European market.
Oli and Matija joined Diageo after graduating and while working there, spotted how attractive a low (4%) alcoholic drink made with purified sparkling water infused with pure fruit might be to a UK and European audience, based on its recent successful US launch. There is no sugar in the seltzer and the only calories are the alcohol so it appeals to those looking for a clean, healthy low alcoholic drink.
Oli and Matija decided to back their judgement and start out on their own and so formed DRTY Drinks. DRTY launched in the UK with two flavours (white citrus and raspberry rosé) but quickly added a third (mango passion) to its offering.
DRTY’s initial fund raising in 2019 was £300,000 of which Dunelm contributed £110k. This was followed by a second fund raising in September 2020 of £450,000 with Dunelm contributing a further £210k. These fund raisings enabled DRTY to position itself as the leading independent hard seltzer in the UK with listings at, among other retailers, Waitrose, Ocado, Whole Foods and BP Forecourts. DRTY also became the sole UK distributer of French cider brand, Galipette.
Based on research by Nielson in 2022, DRTY was also the fastest growing ready-to-drink brand in UK retailers. That position and rapidly growing revenues enabled DRTY to complete a further fund raising in March 2023 of £1.1m. Dunelm again participated but the largest subscribers were the venture capital firms FSE and Velocity who have subsequently invested further funds.
It is fair to say that the UK and European markets for hard seltzer have not developed to the extent anticipated based on the rapid growth of the US market. DRTY has found itself the last remaining independent hard seltzer in a market dominated by the American brand White Claw.
As a result, DRTY has looked to expand its distribution business and has done so successfully. In addition to Galipette cider it now is the sole UK distributer for BRLO, an independent Berlin beer brewer and Big Spitz, the cocktail in a can with the expectation of other brands being added to the portfolio in the near future.
For more information on DRTY please go to www.drtydrinks.com