Business
LQR House Announces Acquisition of 8.58% Stake in DRNK Beverage Corporation, Entering the $902.14 Billion Non-Alcoholic and $2.2 Trillion Ready-to-Drink Beverage Markets
MIAMI BEACH, FL / ACCESSWIRE / June 10, 2024 / LQR House Inc. (the "Company" or "LQR House") (NASDAQ:LQR), a niche ecommerce platform specializing in the
About this update from Lqr House Inc.
[{"type":"text","content":"MIAMI BEACH, FL / ACCESSWIRE / June 10, 2024 / LQR House Inc. (the \"Company\" or \"LQR House\") (NASDAQ:LQR), a niche ecommerce platform specializing in the spirits and beverage industry, today announced the acquisition of 1,920,000 shares of DRNK Beverage Corporation at $2.50 USD per share, totaling $4.8 million USD. The proceeds were irrevocably transferred for the sole and exclusive use of the issuer as of June 2024. This investment, which has been held in escrow, will not impact the cash on hand numbers reported in the Company's last filing. LQR House's investment in DRNK marks its strategic entry into both the non-alcoholic (NA) and ready-to-drink (RTD) beverage markets, two rapidly growing sectors within the beverage industry.According to a report by Fact MR, the global revenue value for the non-alcoholic beverage market was estimated at approximately $987.3 billion in 2024 and is expected to reach a size of $1,889.42 billion by the end of 2034, growing at a compound annual growth rate (CAGR) of around 6.7% over the next ten years. The growing demand for health-conscious products, accelerated by the pandemic, has shifted consumer preferences towards healthier beverages, with less sugar and natural ingredients without added preservatives. This shift makes it an ideal time for LQR House to enter this sector through the acquisition of DRNK.As consumers increasingly prioritize their health and wellness, there is a growing demand for drinks that offer functional benefits such as immune support, energy enhancement, added vitamins, probiotics, and plant-based ingredients. To meet this trend, DRNK has developed a ready-to-drink option with various nutritional advantages.Commenting on the acquisition, Sean Dollinger, CEO of LQR House, stated, \"Investing in DRNK is a strategic move for LQR House. We have observed significant growth in these two categories on our platform and recognize their immense value. Given the challenges of shipping canned beverages online due to margins, having this product in our portfolio will enhance LQR House's visibility on brick-and-mortar shelves. We are enthusiastic about collaborating with the DRNK team, which also has an excellent distribution network for LQR products. We understand our investors' concerns about dilution of LQR stock, and we want to reassure them that this acquisition is entirely c...