February 17, 2024
Image Credits: Odyssey
Odyssey, the mushroom-based functional energy beverage maker, raised $6 million in an equity investment to give it a total of $14 million in funding since launching their first drink two years ago.
Odyssey’s products are part of the health benefits of Lion’s Mane and Cordyceps mushrooms to produce a drink that combines an energy boost with 2,750 milligrams of the mushrooms to provide cognitive clarity and focus.
Lion’s Mane, in particular, was shown to positively impact cognitive function and mood in young adults, according to a 2023 National Institutes of Health pilot study.
Scott Frohman, founder and CEO of Fort Lauderdale, Florida-based Odyssey, started working on Odessey in 2021 after learning the benefits of certain mushrooms from a friend making mushroom powder to mix in drinks. At the time Frohman didn’t exactly like how the powder affected the taste and texture of the drinks, and preferred an energy drink delivery.
“I started adding it to my coffee, and I realized that everything was more clear,” he told TechCrunch. “The best part was when I got to work, I realized that I didn’t need that second cup of coffee. On top of that, I just felt I was just more present and was able to jump to my work.”
Today, the company has 11 SKUs, including flavors like Blackberry Lemon Twist, Dragon Fruit Lemonade and Passion Fruit Orange/Mango.
For those who want even more of a caffeine boost, the company recently introduced the Odyssey 222 line with 222 milligrams of caffeine in addition to the mushrooms, Frohman said.
The energy in the drinks come from a combination of L-Theanine, ginseng and green tea caffeine. And these come with less added sugar to help minimize “the jitters” and sugar crashes typically associated with traditional energy drinks.
Over 5,000 stores, including Bristol Farms, CVS, GNC, Erewhon, 7-Eleven, Thrive Market, Wegmans and Publix carry Odyssey products. Frohman didn’t provide growth metrics, but did say the company is seeing sales pick up in terms of three to five cans per week per SKU being sold.
The functional beverage industry’s growth is been accelerated in recent years as consumers are increasingly looking for healthier foods. The global functional drink category is expected to be valued at $208 billion by 2027. This has inspired new brands to emerge and enticed some venture capitalists to invest in the sector.
We have seen brands like healthier soda companies Poppi and Olipop grab capital in 2022, while The Ryl Company raised $6.7 million in early 2023 for its functional ready-to-drink tea line.
Odyssey also joins a long list of companies leveraging mushrooms and mycelium, the root of the mushroom, to make everything from alternative proteins to leather-like materials to building materials. Companies like Infinite Roots are even growing mushrooms for commercialization purposes. Yet there are still only a few functional mushroom RTD drinks in the list.
“As the timing is no doubt right, mycelium can win over consumers with taste, nutritional, functional, scalable and impact-related benefits,” said PeakBridge CTO Maya Schushan Orgad in a review of mycelium trends.
Meanwhile, Odyssey’s new funding round includes strategic investor Richard Laver from Rocket Beverage Group, who joins a group of existing stakeholders contributing 50% of the total raised amount.
Frohman plans to allocate the capital toward inventory to keep distribution going and hiring in the areas of sales and marketing.
“We don’t see this as just a product, but a whole movement,” Frohman said.
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