Newcastle University graduates on a mission to stir up the drinks industry have received £1.1m in funding to support expansion plans.
Lixir Tonic was first set up in Newcastle in 2018 by founders Matt Mahatme and Jordan Palmer, who left their jobs to create the range, which was initially sold in department store chain, Fenwick, before securing orders in bars and pubs across the North East.
Since then, Lixir – which sells flavours such as blood orange and cinnamon, rhubarb and ginger, elderflower and lemon and the classic Indian – has grown its team, clients and listings and expanded into overseas markets.
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Now, having launched into 18 markets and seen growth of 160% in the last year, the premium tonic and mixer brand has secured the £1.1m investment to support its expansion plans.
It has secured the funding from new investors and backers including ex-founder of Pure Gym, Peter Roberts, and former commercial director of Pernod Ricard, Chris Ellis.
Bottles of Lixir Tonic (Image: Citypress for Lixir)Mr Palmer said: “After making it through a challenging couple of years for the trade, we’re thrilled that this new investment will allow us to really scale the brand – for us that looks like investing in new team members and activating the brand to reach as many new consumers as possible.”
The entrepreneurs put the huge year-on-year growth down to its distribution deal with Molson Coors Beverage Co in April 2021.
Mr Mahatme said: “We have a huge festival season lined up and this investment has enabled us to ensure that is the best possible representation of our brand, and we’ll also be rolling out a bespoke bottle and updated label design to further premiumise the range.”
Lixir is also looking to boost its sustainability. The brand is already carbon neutral, and is working towards achieving B-Corp status by the end of the year.
Mr Ellis added: “Closing the latest round of fundraising is a fantastic achievement for Matt and Jordan. The business is now set to catapult into the next stage of its development, as we work towards building further in the on-trade and growing into new market segments in the UK and export markets. An exciting time for the whole team.”
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