Odysseya maker of functional mushroom-based energy drinks, raised another $6 million in equity investment for $14 million in total funding since launching its first drink two years ago.
Odyssey products harness the health benefits of Lion's Mane and Cordyceps mushrooms to produce a beverage that combines an energy boost with 2,750 milligrams of the mushrooms to provide cognitive clarity and focus.
Lion's Mane, in particular, has been shown to have a positive impact on 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, first learned about the benefits of certain mushrooms when a friend was making a mushroom powder to mix into drinks.
“I started adding it to my coffee and I noticed everything was clearer,” he told TechCrunch. “The best thing was that when I got to work I realized I didn't need that second cup of coffee. On top of that, I felt like I was more present and able to dedicate myself to my work.”
However, Frohman didn't exactly like how the powder affected the taste and texture of the drinks, and preferred an energy drink delivery, so he began working on Odyssey in 2021. Today, the company has 11 SKUs. , including flavors like Passion Fruit and Orange. /Mango, Dragon Fruit Lemonade and Lemon and Blackberry Twist.
The energy in the drinks comes from a combination of L-theanine, ginseng and caffeine from green tea. And there is less added sugar to help minimize the “jitters” and sugar crashes typically associated with traditional energy drinks, Frohman said. For those who want an even bigger caffeine boost, the company recently introduced the Odyssey 222 line with 222 milligrams of caffeine in addition to mushrooms.
More than 5,000 stores including Publix, CVS, GNC, Erewhon, 7-Eleven, Thrive Market, Wegmans and Bristol Farms sell Odyssey products. Frohman did not provide growth metrics, but said the company is seeing an increase in sales in terms of three to five cans per week per SKU sold.
The growth of the functional beverage industry has accelerated in recent years as consumers increasingly seek out healthier foods. He Global category of functional soft drinks expected. It will be valued at $208 billion by 2027. That inspired the emergence of new brands and attracted some venture capitalists to invest in the sector.
During this time, we saw brands such as healthier soft drinks companies Poppi and Olipop raise capital in 2022, while The Ryl Company raised $6.7 million in early 2023 for its ready-to-drink functional tea line.
Odyssey also joins a long list of companies harnessing fungi and mycelium, the root of the fungus, to make everything from alternative proteins to leather-like materials and construction materials. Companies like Infinite Roots are even growing mushrooms for marketing purposes.
“As the time is undoubtedly right, mycelium can win over consumers with flavor, nutritional, functional, scalable and impact-related benefits,” said Maya Schushan Orgad, chief technology officer at PeakBridge, in a review of mycelium trends.
Meanwhile, Odyssey's new funding round includes strategic investor Richard Laver of Rocket Beverage Group, who joins a group of existing stakeholders contributing 50% of the total amount raised.
Frohman plans to allocate the capital to inventory to maintain distribution and hiring in sales and marketing.
“We don't see this just as a product, but as an entire movement,” Frohman said.