SipMARGS lands $2.4M follow-on as Quench Ventures backs two beverage brands
What's the deal? Quench VenturesDealroom has a profile for this one. Try Dealroom → has committed $4.4 million across two beverage startups: a $2.4 million early-stage follow-on into ready-to-drink margarita brand SipMARGS and a new $2 million investment in Kenetik, a maker of caffeine-free ketone drinks. The Grand Rapids firm led the SipMARGS round alongside investor Alix EarleDealroom has a profile for this one. Try Dealroom →, and announced both deals on October 26, 2026.
What's the endgame? Quench pairs capital with a team of beverage operators who work with portfolio companies on distribution, marketing, and strategy. "Great beverage brands need more than capital to reach their potential," said founder and managing partner John Green.
Where the money goes: SipMARGS will fund production, retail and on-premise launches, and market development after growing from eight to 46 states in three months via a partnership with spirits group SazeracDealroom has a profile for this one. Try Dealroom →. Kenetik, founded by Devon Price and Peter Bayne, will use its $2 million to expand from direct-to-consumer into wholesale and build a repeatable retail model.
Why now? Capital is concentrating in spirit-based ready-to-drink cocktails and functional drinks, even as overall beverage deal volume falls year over year. Spirit-based RTD dollar sales rose 32.1% in the 12 months through August 2026.
What's the context? The SipMARGS round sits in the 46th percentile by amount — a mid-sized early-stage deal rather than a sector-defining one. Larger raises, such as Ryl Tea's $20 million Series C, show where investor appetite peaks for brands with national expansion potential.
The signal: Quench's split bet — follow-on into alcohol, fresh money into functional — shows how beverage investors are narrowing to two growing niches while the broader market cools. The announcement itself, however, does not establish either brand's traction.
Read more: bevnet.com
Image credit: Generated with Gemini
