Saicho, a producer of luxury non-alcoholic sparkling tea based in Solihull, has secured a £1.5 million seed funding round led by a £500,000 investment from the West Midlands Co-Investment Fund (WMCO), managed by Future Planet Capital Regional, formerly known as Midven.
The funding will fuel Saicho’s ambitious growth plans as it continues to redefine the non-alcoholic beverage market with its unique, single-origin sparkling teas. Already a favourite in Michelin-starred restaurants and five-star hotels across 14 countries, Saicho caters to the growing number of health-conscious consumers and those who abstain from alcohol, offering a sophisticated alternative for premium dining experiences. The investment will be used to expand marketing efforts in key markets including the UK, China, and the Middle East, increase on-trade and off-trade activations, grow the team across several regions, and enhance production capabilities with new equipment.
Recognising the significant potential of Saicho’s category-creating brand and the increasing demand for sophisticated non-alcoholic options, Future Planet Capital Regional’s investment will support the company’s mission to become a global leader in the luxury non-alcoholic beverage sector. Saicho’s commitment to quality, its strong brand equity, and its focus on key occasions like brunch, afternoon tea, and gifting position it for rapid expansion.
A recent survey found that nearly half of UK adults surveyed indicated their intention to reduce or eliminate alcohol consumption in the next year. This trend is driven by a combination of health and financial considerations, with many individuals seeking to improve their well-being and make more conscious lifestyle choices.
The WMCO, funded by the West Midlands Combined Authority (WMCA) and the West Midlands Pension Fund, aims to support high-growth SMEs that contribute to the regional economy. Managed by Future Planet Capital Regional, the fund provides equity investments of up to £1 million, matched by private co-investment.
Richard Parker, Mayor of the West Midlands and WMCA Chair, said, “Charlie and Natalie have hit on a winning formula and I’m looking forward to seeing them take their unique sparkling tea to bars and restaurants across the world following our investment. Backing local entrepreneurs and startup businesses is crucial to my plan for growth – so that we can see them succeed and create the jobs and prosperity our region needs.”
Charlie Winkworth-Smith, Founder & CEO of Saicho, said, “This investment is a significant step forward for Saicho as we accelerate our growth in key markets and continue to innovate. This will allow Saicho to reach more people who are seeking delicious and healthy alternatives to alcohol. We are passionate about promoting mindful drinking and creating inclusive social experiences for everyone, regardless of their alcohol consumption choices.”
Rupert Lyle, Investment Director at Future Planet Capital Regional and Fund Principal of WMCO, said, “We were immediately impressed by Charlie and Natalie’s vision and passion for creating a truly unique non-alcoholic beverage experience. Their commitment to quality, unique product offering, and strong brand resonate with consumers seeking healthier and more mindful lifestyle choices. We are confident in their ability to become a global leader in this exciting and evolving market.”