Japanese multinational beverage company Suntory has invested in Seattle-based beverage startup Atomo, makers of coffee-like beverages in which coffee is not an ingredient.
According to a Bloomberg report, the undisclosed investment is in the “multi-million” dollar range. It comes from the “future business development department” of Suntory’s investment arm, Suntory Holdings Ltd.
Atomo did not immediately return DCN’s request for clarification regarding the deal. In an announcement from Suntory, Atomo Co-Founder and CEO Andy Kleitsch said that the investment represents a “major milestone” for the company as it accelerates its ambitions to deliver “sustainable and delicious beverages to customers around the world.”
Atomo had raised more than $50 million in funding through three previous funding rounds, including a $40 million boost last year from numerous investment firms.
The company promises proprietary formulations using ingredients such as date extract, sunflower seed extract and chicory root that it says look and taste like traditional coffee. Foundational to the company’s pitch since its founding in 2019 is the idea that the coffee sector is under threat due to climate change and other environmental factors, while also experiencing growing consumer demand. The company therefore offers a coffee-like product that does not require coffee.
Atomo’s newest investor, Suntory, remains one of the world’s largest producers of distilled spirits following the 2014 acquisition of Beam and the creation of Beam Suntory, owner of brands such as Jim Beam, Maker’s Mark and Knob Creek.
The Osaka-based company has been active in recent years in investing in coffee-related research, including funding a genome sequencing project led by researchers at UC Davis in California.
Does your coffee business have news to share? Let DCN’s editors know here.
Comment