Ask the Collective

What is the current investment funding landscape for spirits brands and accelerators, and what challenges are emerging?

The UK spirits investment landscape is contracting. **Diageo's Distill Ventures** (DV), one of the few major accelerators and investment funds bridging diversity and capital raising in the sector, has announced it will cease making new investments. This signals broader market challenges around growth potential and exit prospects for drinks brands. Key context members highlighted: - Diageo's own share price decline and leadership transition (from Ivan to Debra Crew) has triggered a "scorched-earth" policy cutting peripheral and non-core business investments - Diageo is restructuring distribution globally—dissolving historical partnerships (e.g. LVMH partnership in France) and building direct-to-market operations - DV's closure reflects investor confidence challenges in the sector, not poor fund performance; members noted DV was not responsible for underperformance at Diageo's core brands (e.g. 40% sales drop at Casamigos, Smirnoff Miami Peach) - Current portfolio companies in DV may face difficulty securing follow-on funding Members described DV as "one of the few investment funds and accelerators out there with the capabilities of bridging the gap between D&I and raising capital," underlining how few alternatives exist for founders seeking capital paired with diversity-focused support. The closure leaves a notable gap in accessible early-stage funding for spirits startups.