Stoli Group Finances The Pathfinder's $3.6 Million Push Into Zero-Proof Market Expansion

In a significant development for the beverage industry, The Pathfinder, a pioneer in the realm of zero-proof spirits, has successfully closed a $3.6 million Series B funding round led by the Stoli Group, a global leader in spirits. This partnership marks a crucial step for The Pathfinder as it aims to redefine the landscape of non-alcoholic beverages.

The capital raised is expected to facilitate a wider distribution network across the United States, allowing The Pathfinder to strengthen its presence through new retail partnerships and strategic personnel growth. Notable new hires include Jill Sites (Sales and Marketing), William Howe (CFO), and Marilyn Canderloro (Head of Supply Chain), who will play pivotal roles in transitioning The Pathfinder into a prominent nationwide brand.

Chris Abbott, co-founder of The Pathfinder, expressed enthusiasm about the investment, stating, "This raise gives us the capital we need to execute a nationwide rollout combining The Pathfinder's dynamic brand and unique liquid proposition with the power of the Stoli distribution network. We've done the hard work getting into some of the best bars in the world. Now it's time to scale off-premise and meet the rising demand across the country."

This funding expands upon Stoli Group's initial investment from 2023, marking their entry into the burgeoning non-alcoholic spirits market. With projections indicating availability in 41 states by the end of the year, The Pathfinder is also gearing up for retail launches in major outlets, including Whole Foods Market, Total Wine & More, and Sprouts.

Despite 70% of current sales coming from on-premise accounts, The Pathfinder is poised for significant off-premise growth, particularly beyond its established markets in the Pacific Northwest and New York, which currently represent 55% of its revenue.

Michael Howard, President of Stoli Group in North America, commented on the evolution of The Pathfinder, highlighting its role in shaping the non-alcoholic category. He stated, "The Pathfinder has emerged as a true trailblazer in the non-alcoholic space—pushing boundaries with both bold liquid and bold vision. As consumer interest in zero-proof spirits accelerates, we're proud to deepen our partnership and help scale a brand that's rewriting the rules of the category."

Furthermore, the increase in funding will fuel the launch of The Pathfinder's new 200ml ready-to-drink (RTD) options, such as The Pathfinder Spritz and The Pathfinder Negroni. The Negroni stands out as the only non-carbonated version available in the non-alcoholic segment, providing a unique cocktail experience that resonates with consumers.

Recent sales data indicates an impressive growth trajectory, with The Pathfinder experiencing an 82% increase in velocity and a staggering 181% rise in total sales dollars just in the last quarter. This trend reflects the increasing consumer demand for sophisticated, bartender-approved non-alcoholic options.

About The Pathfinder

The Pathfinder launched its flagship product, Hemp and Root, in the fall of 2021. Crafted from fermented hemp, it delivers robust flavors and complexities akin to traditional spirits. The Pathfinder quickly gained recognition within the cocktail community and features in upscale bars and restaurants across the U.S. Its innovative RTD offerings, including the recently added coffee-based expression, highlight the brand's commitment to providing versatile non-alcoholic options.

About Stoli Group

Founded in 2013, Stoli Group is renowned for producing a diverse portfolio of premium spirits. Known primarily for its Stoli® Vodka, the company has expanded to appeal to a more sophisticated market. With operations in over 176 countries and a focus on luxury consumer segments, Stoli Group continues to innovate and redefine beverage consumption globally.

As consumer preferences shift towards non-alcoholic options, The Pathfinder stands at the forefront of this evolving market, propelled by the support of industry giants aimed at reshaping traditional drinking culture.