Private equity firm InvestBev has invested US$1 million in Ten To One Rum, co-owned by American singer Ciara.
Chicago-based InvestBev Group, a division of Growth Beverage, claims to be the largest private equity firm in the adult beverage sector.
The strategic partnership aims to ‘propel’ the rum brand to ‘new heights’ in the ultra-premium Caribbean rum category.
Ten To One was founded in 2019 by entrepreneur and former Starbucks senior vice-president, Marc Farrell.
R&B singer-songwriter Ciara joined the rum brand in October 2021 as an investor, co-owner and director.
The collaboration with InvestBev will aim to bring the brand to new markets, meet ‘growing demand’, and establish Ten To One as a ‘premium market leader within the rum category’.
Brian Rosen, founder of InvestBev Group, said: “Marc and his team have built an incredible brand for what we feel is the next hot category.
“Data shows that rum is gaining share monthly, and we are excited to support Ten To One in their growth journey.”
InvestBev said it would join forces with Diageo-backed incubator Pronghorn, which announced an investment in Ten To One in August last year, to provide support to the brand’s team.
“We’ve always sought to identify great investors who not only have resonance with our aspirations for Ten To One, but also have the ability to directly impact those ambitions to build something iconic with the brand,” Farrell added.
“Brian and the InvestBev team fit the bill on both fronts, and so we’re thrilled to welcome them to the Ten To One family.”
According to IWSR Drinks Market Analysis data cited by Pronghorn last year, the US market for super-premium-plus rum brands is expected to have a compound annual growth rate of 12.6% from 2021 to 2026, and will grow two times faster than the total spirits industry over the next five years.
Ten to One was the first of 57 investments that Pronghorn will make in Black-owned spirits brands over the next decade.
Diageo North America is the anchor investor in Pronghorn.