Nova Scotia’s Fundy Drinks, maker of Viveau sparkling mineral waters, obtains $2 million from BDC Capital to extend runway during rapid growth
HALIFAX, NOVA SCOTIA, April 21, 2022 – Nova Scotia beverage company Fundy Drinks, maker of Viveau sparkling mineral waters, has obtained $2 million in non-dilutive financing from BDC Capital’s Growth & Transition Capital division. This will allow the company to extend its runway and sustain its fast-paced growth of the past two years.
Fundy Drinks was founded in 2018 by chef and food product developer Ted Grant together with Hanspeter Stutz, a wine and cider pioneer who built the Grand Pré Winery in Nova Scotia. It first introduced Viveau late in 2019. Viveau, which comes in various flavours, is made with real fruit, high quality spring water and does not contain additives or refined sugars. The new brand quickly took off in 2020 as it made its way to supermarket shelves throughout the Atlantic and is now also available in stores across the country. By appealing to health-conscious customers, Viveau succeeded in differentiating itself in a crowded marketplace. Its success is also attributable to the team of senior marketing, sales, operations, and finance executives assembled by the company founders, as well as the experienced board chaired by Mark Dobbin, a well-known angel investor in the Atlantic region.
BDC Capital’s funding extends Fundy Drinks’ runway as it contemplates a new equity raise after its second seed round in late 2020. More specifically, the new funds will allow the company to increase marketing spend for Viveau and expand in the Northeastern US market where its distinctly Canadian branding is considered an asset. BDC Capital provided the funds as a quasi-equity loan structured in a way to maximize Fundy Drinks’ working capital in executing its growth strategy. It was notably tailored to include patient terms, including a full-balloon repayment of the capital at maturity, as well as a personalized equity-like returns arrangement based on the company’s actual performance.
“We are thrilled to partner with BDC Capital; they have an exceptional track record of supporting entrepreneurs with non-dilutive funding,” says Ted Grant, President and Co-founder, Fundy Drinks. “Viveau is growing at a rapid pace and without the support of BDC Capital, the company would be limited to the breadth of expansion forecasted. Our product has a unique value proposition that requires a significant investment in marketing to communicate the benefits of our delicious real ingredient offering. Thanks to BDC Capital, we can reach a larger audience and build affinity with our Viveau fans nationwide.”
This financing was set up by Paul Ryan, Director, BDC Capital’s Growth & Transition Capital division in Halifax, who will be taking an advisory seat on the board of the company. “Fundy Drinks has achieved something quite remarkable by successfully bringing a new product to market that is competing toe-to-toe with large, well-established brands,” says Ryan. “Given the product’s quality, its positioning, and the exceptional team behind it, there’s no denying Viveau has the potential to go global. To us, Fundy Drinks is an Atlantic success story in the making.”
Viveau is made with two ingredients, real fruit and lightly sparkling mineral water. Since day one, Viveau has stood with the real food movement. That’s why we source our fruit and water from the earth, not the lab. We’re proud to work with local Canadian farmers ethically and sustainably to source, grow, and pick our fruit. Flavours include crisp apple, wild blueberry, tart cherry, and ripe strawberry. Visit drinkviveau.com.
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.