The Source Ventures, the venture capital division of the Spadel Group, has confirmed a strategic investment in UK-based beverage startup Living Things. This move underscores the increasing institutional momentum behind functional, "better-for-you" soft drinks and aligns with The Source Ventures' mandate to support sustainable and health-oriented beverage innovation across Europe.
Since its launch just over two years ago, Living Things has achieved significant market penetration within the UK’s competitive soft drinks landscape. The brand has secured distribution in approximately 25,000 outlets, including major retail listings with Tesco, Waitrose, and Boots.
Co-founded by Jonathan Relph and Ben Vear, the brand's value proposition centers on low-sugar, high-fiber sparkling sodas that incorporate both prebiotics and probiotics. The products are designed to meet the rising consumer demand for "functional indulgence"—beverages that offer health benefits without compromising on taste.
Strategic Objectives and European Expansion
The latest funding round, which includes participation from existing investors alongside The Source Ventures, is earmarked for several key growth initiatives:
International Expansion: Leveraging the Spadel Group’s regional expertise to enter wider European markets.
Operational Scaling: Enhancing supply chain capabilities to meet growing retail demand.
Marketing and Talent: Increasing brand visibility and expanding the internal team to support large-scale distribution.
The company has established an ambitious medium-term goal of becoming a €100 million brand within the European soft drinks market.
The Rise of Gut-Friendly Sodas
The investment comes at a time when the gut-health segment is outperforming traditional soda categories. Health-conscious consumers are increasingly moving away from both legacy diet sodas and alcohol, seeking alternatives that provide digestive benefits through natural cultures and fiber content.
"Living Things embodies the core values shaping the future of beverages: naturality, functionality, and sustainability," stated a representative from The Source Ventures. The partnership is expected to provide Living Things with the capital and industry network necessary to transition from a UK challenger brand to a significant European player.
About The Source Ventures
As the venture arm of the Spadel Group, The Source Ventures focuses on early-stage investments in the beverage sector. The group prioritizes startups that demonstrate a commitment to healthier consumption habits and environmental responsibility, reflecting a broader industry shift toward ESG-driven investment portfolios.
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