Pernod Ricard has invested in circular economy technology company ecoSpirits through its venture capital fund, Convivialité Ventures.
The drinks giant has joined the $10 million Series A funding round, taking a minority share in the start-up, which is committed to developing low carbon, low waste distribution systems for the alcohol industry.
The round also included participation from New York-based circular economy investment fund, Closed Loop Partners, as well as food sector private equity investor, Proterra Asia, Singapore-based growth stage investor Pavilion Capital and existing investor, Wavemaker Partners.
EcoSpirits’ closed-loop distribution system offers a “powerful cost advantage” and reduces waste and carbon emissions by “avoiding the production and transportation of glass bottles and other secondary packaging”.
Pernod partnered with ecoSpirits back in March 2022 for the distribution of some of its premium brands in Hong Kong and Singapore, including its Absolut vodka, Beefeater gin and Havana Club rum. These spirits are transported in bulk and delivered to hospitality venues in a fully reusable 4.5-litre glass container, reducing the waste and emissions associated with the production/transportation of bottles and secondary packaging.
EcoSpirits says it will use the funds to strengthen its leadership position and accelerate its R&D activities. It will enable the start-up to scale its hardware, software and IoT R&D programme, expand operations in key markets globally (including the US), and grow its regional customer and engineering teams in Miami, London, Singapore and Shanghai.
Stéphane Longuet, co-founder and managing director of Convivialité Ventures, said: “We are very pleased to participate in this investment which will help develop a company offering such an innovative solution to our industry, by drastically reducing waste and carbon emissions. EcoSpirits’ approach is perfectly in line with our group’s objectives to reduce its carbon emissions and we are looking forward to using it on a large scale around the world.”
Sui Ling Cheah, ecoSpirits executive board chairman, added: “We are thrilled with the successful close of our Series A round, which not only validates ecoSPIRITS’ impressive progress in building a comprehensive technology platform, but also marks a significant milestone in our journey to global scale. We are equally honoured to welcome leading investors to our journey such as Closed Loop Partners, Proterra Asia, Pavilion Capital and Convivialité Ventures. The future gets brighter when more resources are invested in circular economy innovation.”
The news comes as Pernod moves to expand its partnership with ecoSpirits to markets outside of Asia.
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