Caffeine Fix: Awake Chocolate Raises CAD $8M

Awake Chocolate has raised CAD $8 million (approximately $5.84 million USD) in funding, including CAD $5 million from Btomorrow Ventures, the corporate venturing arm of British American Tobacco, and CAD $3 million from BDC Capital. The investment brings the brand’s total funding to CAD $15.5 million since its inception in 2012.

Founded by a trio of PepsiCo Canada veterans, Awake markets a line of caffeinated chocolate bites (50mg) and bars (100mg) that are available in more than 3,000 retail locations across Canada and in 15,000 foodservice and vending locations in the U.S. The company is approaching CAD $30 million in sales this year, having grown more than tenfold since its inception, according to a press release.

The company plans to use a significant portion of the new capital to support supply chain initiatives, including expanding co-manufacturing partnerships and forging new supplier relationships, as well as new product development and marketing efforts.

“We are thrilled to close this latest funding round with the continued support of Btomorrow Ventures and a new partnership with BDC,” said Adam Deremo, CEO and founder of Awake Chocolate, in the release. “This investment is a testament to the incredible growth we’ve achieved and the strong demand for our functional and delicious chocolates. With this infusion, we’re focused on further scaling our operations, innovating our product line, and reaching even more consumers across North America.”

The product line was designed to provide consumers with the caffeine boost they desired without the polarizing taste of an energy drink.

“If you ask the general population, do you have a want or need for more energy in the day, an overwhelming majority say yes. But it turns out that only 70% of those people were buying products to meet the need and the reason the other 30% weren’t was because they wouldn’t make the taste trade-off,” Deremo told Nosh in an interview last April.

Btomorrow Ventures first invested in the Ontario-based confectionery brand in 2021, then furthered its support with two CAD $5 million follow-on rounds in 2023 and 2024. Its portfolio also includes HOPWTR, Tru, Moment, Mais Mu, and More Labs.

“Our continued investment in Awake reflects our strong belief in its performance and the depth of the management team,” said Lukasz Garbowski, chief investment officer, in the press release, noting “wellness and stimulation” represent a key focus area for the fund.

Caffeinated snacking is not a new concept, and recently several new brands have introduced innovative formats – from mouth sprays to squeezable paste – that provide a boost between cups of coffee or tea.