Caffeinated gum company Rev, cofounded by Blake Settle (right) and Reed Burch (left), has raised $6 … [+]
Chewing gum is a $33.1 billion global business, but concerns over their negative environmental impact and a lack of innovation over the years have caused legacy food companies, notably Mondelēz, to turn away from the category.
In 2022, the Oreo cookie producer announced the sale of its chewing gum business in developed markets to competitor Perfetti Van Melle for $1.35 billion. By contrast, gum products boosted with functional benefits have been making waves ever since confectionery leader Mars Wrigley relaunched its caffeinated gum Alert in 2017 after the FDA clearance.
Smaller entrants touting portability and efficacy of their added ingredients, including Mighty Gum, Run Gum, and Neuro, are growing rapidly by appealing to consumers who are looking for a quick energy boost. Austin, Texas-based Rev Energy Gum is the new kid on the block, and is on track to cement its leadership position in the space after closing $6 million in a recent series A round earlier this summer.
Cofounded by Blake Settle after he struggled to stay awake during finals in college while trying to avoid sugar-loaded energy drinks, alongside Sam Ehlinger and Reed Burch, Rev Energy Gum offers four different sugar-free varieties: spearmint and polar mint in regular strength with each tablet containing 60mg of caffeine, and the same flavors in extra strength, offering 100mg of caffeine.
“At Rev Gum, we’re proud to bring innovation and function to a category that has remained stale for a long time. Our differentiated value proposition is exactly what drives us to outperform legacy energy shots and chewing gum,” Settle said in a statement. “The purchasing power consumers have today is stronger than ever. With the support from our latest investors, we believe Rev Gum is strategically positioned to attract more active, health-focused shoppers, and better help to realize their unfulfilled potential.”
Rev’s latest financing round was led by YETI Capital (not affiliated with the publicly traded YETI); founders of Drunk Elephant; former co-CEO of Whole Foods, Walter Robb; and globally renowned athlete, Lance Armstrong.
Commenting on their new investment, Maxx Karr, Managing Director and Partner of YETI Capital, said: “We are thrilled to join the Rev Gum team, both as investors and advisors. Rev Gum has done what others have not been able to: deliver energy to consumers in the convenient format of gum, while making it taste great. We are excited for Blake and his team’s continued innovation.”
Retail Expansion And Upcoming Innovation
Rev’s official retail launch was in 2019 starting with major banners, including Buc-ee’s, Circle K, and Love’s, and the brand has been growing exponentially, selling across more than 20,000 retail locations today, including Walmart
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“2024 should see notable expansion for Rev in a few new retail categories. We’re always focused on adding quality doors while continuing to grow velocities with our current retailers,” Settle said. “These doors reflect our strategic partnerships with target retailers. We’re always looking to work with retailers who align with our target consumer.”
Settle also attributes Rev Gum’s successful fundraise to his lean team of 10 full-time employees besides the company’s differentiated attributes and unique product market fit. “It is a perfect timing for Rev to launch into the market, since the gum category is ready for some functional innovation,” he said, “and we’re always looking to onboard strategic talents whom we would love to grow together with.”
Settle added: “With the newly raised capital, we plan to expedite the development of some game changing innovation, while continuing to drive brand awareness both online and in retail through increased marketing efforts – on-site sampling, event sponsorships and activations, to name a few.”
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