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Seeing signs that brand is clicking with new gen of CSD drinkers, No Cap Soda Pop is going out for another capital raise, "friendly five" in $5 mil range via convertible SAFE note as LA-based co lays groundwork for formal Series A round within next coupla years. Key investor, Pinnacle Investment Group, which backed $3 mil early round, already has gobbled up close to half, with wholesalers and copackers also likely to take a piece of the action, said Sam Wilson, longtime energy drink exec who launched brand coupla years ago with his son Vinny. As we've chronicled, No Cap (which styles itself as "NO CAP! Soda Pop" with the capital O rendered as a bent bottle cap) is youth-pleasing stevia-sweetened zero-sugar entry packed in energy-drink-style 16-oz cans, in flavors like Apple Rizz, Bussin' Berry and Sour Watermelon, augmented by licensed flavors (also energy-drink-style) first from gummy marketer Albanese and more recently from Icee that have struck enough of a chord that Vinny said 6-8 other confectionery brands are now at the table lookin' to cut their own deal. That seems to be an area, he noted, that more established "modern soda" brands like Poppi aren't venturing into. Icee entries, with a multiple of velocity of core line, quickly sold out, with co undertaking another run today to get more inventory out to clamoring retail customers. For America's 250th this summer, brand is prepping an Icee Red White & Boom entry. Anticipated partnership with X Games should also yield a collaborative can, as Ghost has done effectively in energy segment. No Cap also been doing well with variety 8-pk of minicans that's offered chainwide in HEB. Some of the innovation is inspired by growing ranks of ambassadors dubbed No Cap Mob who, in applying via website, are quizzed on what partnerships they'd like to see. The mob numbers about 2,000 by now.The free borrowing of ideas from energy category is meant to lend further pizzazz and diversification to modern soda category that's been heavily reliant on gut pops and, maybe next, protein pops, as Wilsons explained in update call this morning.On that call, Vinny and his dad (whom Vinny refers to as Junior), emphasized that they're resisting any urge to go crazy on retail doors in order to prioritize building velocity. Still, with just one full year under their belt, they're in 3 Albertsons divs, 5 Kroger divs and regional grocers HEB and Hy-Vee along with 2K c-stores operated under Chevron's Extra Mile and Jackson's banners. That's 10K chain doors in all.They've also built out network of 50 DSD distributors across 16 states, tho some won't be activated until major retail chain has been enlisted in territory, as is case in Minn and Ohio. Among partners in earliest focus markets are Columbia and Hayden in Pac NW, Hensley and Nevada Bev in Southwest and Bud network in Texas. In home market of Calif, brand transitioned out of Classic when that house was acquired by Hand Family Cos and now moves thru AB One, Straub, Pacific, Heimark and Lenore in SoCal. Southeast is next region targeted for expansion, with Wilsons anticipating 2027 to be the year No Cap truly goes nationwide. Even so, brand has picked up pockets of loyalty even in territories it hasn't yet opened up. Its single best customer has been a store in Georgia that's been moving 36 units per day, ordering thru CoreMark, Vinny told us with some astonishment.Despite encouraging progress, co is still operating leanly, relying on staff at Sam Wilson's incubation biz, Better Brands, to handle many routine chores. Vinny's been keeping a firm hand on marketing tiller, telling us he's well along on inking deal to sponsor X Games in Sacramento and New Orleans, following model that's worked well for Ghost Energy in spinning out partnership cans as part of these deals. Last summer, recall, No Cap worked US Open of Surfing to reach target demo in Calif backyard (BBI, Jul 16).

No Cap Goes Out for $5M SAFE Raise While Negotiating Further Licensing Deals on Heels of Albanese, Icee Partnerships; Applying Energy Drink Model to Modern Soda

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