Madre Mezcal has raised $3 million to apply the brand’s successful growth strategy to new products and new markets. The Series A round was led by Room 9, a New York City-based venture capital studio that specializes in investing in the consumer sector.
Amid an increasingly competitive mezcal category, Madre has found quick footing through a grassroots strategy aimed at introducing consumers into the mezcal category. With the additional funding, Madre is poised to expand its word-of-mouth campaign largely driven by in-person activations and online engagement. The priorities of the brand will be to expand its product range to target new consumption occasions, while also expanding its distribution and marketing efforts in new countries, US states, and online.
“Beyond a great-tasting, easy-to-drink mezcal, Madre’s success has been a result of working closely with the communities that have driven word-of-mouth for the brand,” says Chris Stephenson, CEO of Madre. “For us to expand while continuing this successful path, we needed a partner that recognizes the cultural authenticity that fuels our approach. With Room 9, we’ve found a partner that understands the growth opportunities through product, geography and digital expansion, and encourages the brand development through cultural engagement.”
Room 9 is an early-stage venture capital studio whose portfolio spans across the consumer, food, beverage and technology sectors and includes Jot Coffee, Los Sundays Tequila and Cleancult.
“Madre sits in the crosshairs of a cultural movement and an exceptional founding team. We feel the Company is poised to capitalize on the exponential growth of consumer demand in mezcal while building a brand that is authentic to its roots in Oaxaca,” says Room 9 Founder, Anish Bhatia. “Shifting market trends all point to mezcal as one of the fastest growing spirit categories, with Drizly recently reporting a 600% year-over-year growth in their mezcal sales. We’re excited to partner with Madre and believe the brand has the opportunity to become the first true recognized brand in the category.”
“Madre has been a great addition to the Wine Warehouse spirits portfolio,” said Brand Bartlett, Director of Spirits at California-based Wine Warehouse. “Our spirits division gets bigger and better every year and authentic, craft brands like Madre are the reason. Agave is a hot category and Madre is on fire within that category. We couldn’t be happier to be working with the team at Madre and their juggernaut of a mezcal.”
Madre Mezcal is available in selective bottle shops, grocery stores, and online markets in the USA, Canada, UK and Europe. Plans for 2021 include increased retail capacity, as well as new products aimed at targeting new consumers and consumption occasions.