The craft revolution for soft drinks - 4.5M sodas, tonics and AF cocktails sold with £1m turnover
- £1m+ turnover & winner of 11 awards inc. BBC Food & Farming award
- 108% D2C growth in 2021 with 24.8% returning customer rate
- Sold by Selfridges & Co, Amazon UK + over 800 on-trade venues
- Designed, distilled & bottled in-house at our East London site
At Square Root, we’re turning the soft drinks world upside down. Made with real fruit and zero preservatives in our own East London production facility, our drinks are fresh tasting and high in quality.
We say No Way to concentrates and artificial flavours, and ever since we started Square Root, we’ve set out to make delicious, exciting sodas, packed with personality. Soda made right.
With an estimated 10.4m UK teetotal, our sodas and non-alcoholic cocktails are answering the call for AF drinks people can enjoy at home or the pub that are all about taste, not sugar.
From your favourite classics like lemonade and ginger beer through to specialities such as rhubarb, we own the entire process. We work directly with growers before distilling and bottling/canning everything in-house – so we’re 100% confident about quality. This approach lets our brand quickly adapt to the market to create innovative products that meet consumer demand.
Substantial accomplishments to date
The Square Root journey began with us making experimental sodas from our own kitchen – but things have changed a lot since then.
- Our turnover was over £1m*
- We’ve sold 4.5M products, with 22.7% of last year's sales direct.
- In 2021, we experienced 108% D2C growth, and have a returning customer rate of almost 25%.
- We’re stocked nationally in Selfridges & Co, and are in progressive talks with major retailers including Sainsbury’s.Plus, we’re listed online on Amazon UK and soon on Ocado.
- We’re stocked in over 1200 on-trade UK locations, including pub groups Brewdog and Fuller’s & Young's, as well as cafés, restaurants and hotels, including Hilton.
- We're planning a US launch for 2024.
- Our drinks have won 11 awards, including a Food & Drink Heroes 2021 for Non-Alcoholic Drink and a BBC Food & Farming award.
- We completed 2 successful funding rounds in 2018 (to build our Soda Works) and 2021 (to launch cans).
- Since launching cans, we've increased our orders with stockists as well as secured contracts with venues that don't sell glass.
* Based on unaudited management accounts for the year ending Feb 2022.
Our approach to creating experimental, characterful sodas, from exciting recipes through to our positioning as a premium craft drinks product, has kept our brand fresh and our customers coming back – to sample new drinks as well as purchasing their favourites.
23% of products are sold directly from our website.
Our loyalty programme offers our engaged community – our Fizz Fam – rewards when they shop, and gives us a direct line of communication to promote our range via email and social.
Use of proceeds
Having established consumer and trade demand for our products, we’re now ready to rapidly expand our sales on-trade, off-trade and D2C, as well as enter the food delivery sector and to export into further global markets.
Funds raised will be split between:
26% Marketing: Partnering with a specialist brand and marketing agency to deliver exciting, targeted digital campaigns to get Square Root out to the masses.
22% Sales support: running promotions, giving away free stock, etc.
30% New hires: We plan to expand both our sales and marketing department with 4 new team members, to increase awareness of our brand and product; strengthening both our wholesale presence and our D2C sales.
22% Working capital: For ingredients and stock to meet increased demand, as well as supporting general operations.
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
The company has £556,175 of outstanding loans, the breakdown of which is as follows:
- Natwest Loan with £15,165 remaining at an interest rate of 5.68% per annum. The loan is to be repaid in monthly instalments by February 2024.
- £41,192 Natwest Bounceback Loan remaining at an interest rate of 2.5% per annum. The loan is to be repaid in monthly instalments by June 2025.
- Funding Circle Loan with £1,658 remaining at an interest rate of 7.9% per annum. The loan is to be repaid in monthly instalments by January 2023.
- Close Brothers Asset Finance with £213,530 remaining, at an interest rate of 8.5% per annum. To be repaid in monthly instalments by June 2024.
- Director’s Loan with £21,730 remaining. No scheduled date of repayment and is interest free.
- Sellers Funding Loan with £217,000 remaining. The loan is to be repaid in monthly instalments, with an interest only period of 4 months, by October 2023.
- Subsidiary Company Square Root Drinks Bar Limited has a £45,900 Natwest Bounceback loan remaining at an interest rate of 2.5% per annum. The loan is to be repaid in monthly instalments by October 2025.
The business has £206k of outstanding liabilities to creditors generated through the course of business. £175k relates directly to the production and distribution of the product and the remainder relates to fees incurred in the process of installing machinery that has not yet completed.
There is an existing charge over company assets relating to an invoice factoring agreement with Aldermore Bank. The current balance of the factoring loan is £109,200.
The funds raised in this round will not be used to pay these loans.
Open an account to get access to the team members of Square Root
Already have an account? Log in
To comply with financial regulations, we can only show full campaign details to registered users.