The world of low-to-no alcoholic drinks in the UK has been a fickle one at best. While across the Pond kombucha and seltzers – with or without alcohol – continue to do well, here some have faced a tough slog, starting with considerable fanfare, and then silently disappearing away into the night.
It shouldn’t be that way, however. According to Precedence Research, the global functional beverages market was valued at $129.31 billion in 2021 and is expected to increase by 116 percent, by 2030. The industry is exploding across the globe, with a growing number of consumers – many under 30 – prioritising their health and overall well-being, leaving alcoholic beverages in the wind.
The market should be here in the UK, it just seems that nobody is quite tapping into it our tastes – that is until now.
Like many craft brewers/distillers, Hip Pop first started in a kitchen and then moved into a tiny microbrewery in a garage when founders Emma Thackray and Kenny Goodman realised they could be on to something. Originally, Thackray made some kombucha for Goodman when he told her about stomach issues he was having – she had learned to make in the States where it continues to be extremely popular.
One big step that Thackray and Goodman then took, which others don’t, is that they started to sell their drink at local farmers markets, getting instant feedback. The duo then decided to take the leap and create a proper brewery on a farm in Cheshire.
Distillers caught up Emma Thackray to find out about Hip Pop’s most recent functional beverage launch, and the company’s development plans for the next 12 months.
Distillers Journal: Can you provide a brief history of the business? Why did you launch Hip Pop?
“My business partner, Kenny, and I started out in farmers’ markets in Manchester and Cheshire in 2018 testing out our favourite fermented food and drink – kombucha, kimchi and sauerkraut. We had excellent feedback for all three, but decided we loved kombucha the most and wanted to focus on that, so we built our brewery in 2019.”
How has Hip Pop developed over the last 12 months?
“The brand has grown significantly over the last year. Since inception, we’ve successfully doubled our revenue year-on-year, and we now employ a growing team of 16. Earlier this year we also secured a listing with London’s leading department store, Harrods, and cans of our organic kombucha and CBD-infused kombucha are now available in-store.
“In September, we were one of the few non-alcoholic drinks brands invited to take part in the IndyMan Beer Con, and we were also awarded Independent Drinks Producer of the Year at the Manchester Food and Drinks Festival.
“Our popularity across the pond has also grown, and Hip Pop is now stocked in 42 of the 50 US states. We’re hoping to reach the final eight within the next few months.”
The ‘Living Soda’ range launched in September. How did the idea come to you for this product?
“We love fermenting gut friendly drinks, and an apple cider vinegar-based drink seemed like the the next logical step after Sophie Davies, Buyer at Planet Organic, challenged us to create something functional and different from our usual kombucha.
“We also keep a keen eye on USA trends, and it was clear how popular apple cider vinegar-based drinks are becoming over there. Ultimately, we set our brewers the challenge of including a full tablespoon of apple cider vinegar in every can, which isn’t an easy task, but they’ve smashed it out of the park and it’s hard to tell it’s even in there!”
What are the health benefits of apple cider vinegar?
“Apple cider vinegar’s naturally acidic properties can help those with low stomach acid levels and aid digestion. Not only is this good for the stomach, but it can also help with chronic bloating and discomfort after eating.
“It also contains Lactobacillus bacteria, which is one of the most functional probiotics found in fermented foods. The lactic acid they product can prevent harmful bacteria from colonising in the intestines, so it’s extremely beneficial to your overall gut health.”
What makes Hip Pop’s Living Soda different to other apple cider vinegar products?
“Each 330ml can contains a full tablespoon of apple cider vinegar, and while we’d been focused on launching our own apple cider vinegar-based drink for some time, we are the only brand to utilise a full tablespoon within each can.
“By regularly drinking a can of Living Soda, an individual receives the ideal dose to see best results in the long-term, and we’re confident consumers will be attracted by the associated health benefits and our unique flavours.”
What are Hip Pop’s plans for the next 12 months? Do you have any new products in development?
“We’ve got an exciting move to a brand-new brewery in the new year, and we do have new products in the works.
“We’re keeping our cards close to our chest at this stage, but the team are working on an innovative new gut friendly range to add to our current line-up. The idea is not yet found in the UK, so we are all very excited about it.”
You recently raised over £20,000, thanks to a successful Kickstarter campaign. What advice would you give to other small businesses looking to raise capital?
“Our main challenge was getting a clear idea of who our ideal investor was, followed by getting the first one over the line. It’s important to have a clear investment strategy, supported by a solid investment deck that succinctly tells your story.
“You need to be able to demonstrate a clear opportunity for them and why they should trust you with their money. A good advisory team is also critical in the process, as they provide guidance and add credibility. Having all of this in place beforehand will give you the confidence to approach investors and pitch your passion.
“If you don’t get the desired result straight away, don’t be disheartened. Securing investment is a learning curve that becomes a full-time job and can take months – even years – so manage your expectations from the outset and keep buckled for a bumpy ride.”
You’ve worked with several businesses, including LinkedIn and Deutsche Bank, to promote the importance of gut health. Why should more businesses prioritise gut health in the workplace?
“There is an inherent link between our gut health and general well-being. Research suggests the microbes in our gut have a quantifiable role in our brain function, influencing mood and behaviour, as well as mental and physical health.
“Poor gut health can lead to stress amongst employees, leading to increased mistakes, lower quality output and reduced staff retention. If an employee’s day-to-day working ability is affected by a gut health issue, an employer has a duty of care to support them to ensure they can work efficiently.
“We’ve visited businesses, such as LinkedIn, to educate them on the importance of good gut health and the benefits of functional drinks. Encouraging a healthy diet and hosting wellness workshops, are methods an employer can use to promote gut health amongst employees, as there is still more that can be done to prioritise it.”
ISWR predicts the low and no-alcohol sector will grow a further 31% by 2024. How do you think consumers’ attitudes towards alcohol could change in 2023?
“An increasing number of consumers are choosing alcohol-free options over their previously popular counterparts, and as a result, sober curiosity has also increased. Following the pandemic, consumers are more mindful of what goes into their bodies and how it relates to their overall well-being.
“With consumers likely to continue prioritising positive lifestyle changes, it’s probable that the demand for alcohol alternatives will continue to rise. This is the time for businesses to embrace changes in consumer habits and be prepared to adapt for future possibilities, adjusting current product ranges accordingly.”
