Taste Tomorrow Ventures Marks First Food Investment With Better Sour

Taste Tomorrow Ventures, the early-stage investment fund established by beverage incubator L.A. Libations, has taken a minority equity stake in better-for-you candy brand Better Sour. Financial terms were not disclosed; however, Better Sour’s founders confirmed the startup is raising a seven-figure round to support new product launches and expanded distribution.

The deal, announced this morning, marks the venture capital firm’s second investment after the close of its $30 million TTV Fund I and strategic equity partnership with Just Ice Tea last month. The fund was launched by L.A. Libations founders Danny Stepper and Dino Sarti, alongside partner Scott Guthrie, who have a collective eight decades of experience in building, scaling and investing in consumer brands.

Guthrie – a former partner at Virgo Investment Group and a seasoned CPG and entertainment industry leader with past roles at PepsiCo, Disney and Viacom – is responsible for overseeing the firm as managing director.

“A lot of people assume this fund is focused on beverage. We are hoping to make a statement with this investment on a couple of fronts. We are very interested in food and snacks; all the same macro trends we’re following in beverage happen to be going on in snacks. And we are placing a lot of emphasis on the strength of founders,” Guthrie told Nosh.

Better Sour was founded two years ago by Shaka Tea co-founder Bella Hughes and her lifelong friend Semira Nikou to expand cultural representation in the candy aisle. The Austin, Texas-based brand produces low-sugar sour gummies featuring flavors inspired by the duo’s upbringing in Hawaii as daughters of Iranian immigrants.

Offerings include Pomegranate Apricot, Guava Calamansi Lime and Passion Fruit. The products are plant-based, contain 3 grams of sugar per serving and are free from sugar alcohols, artificial colors or flavoring.

Previously, the brand raised an oversubscribed $1 million pre-seed round prior to launching..

“This capital will support new product launches in Q4 and further retail growth across the country. We recently launched in H-E-B and Harris Teeter, and this summer we are rolling out with Thrive, into Coborn’s, on select United Airlines routes, and across Northwest Grocers banners, among other retailers from coast-to-coast,” Hughes and Nikou told Nosh via email.

Taste Tomorrow Ventures targets early-stage and Series A companies that are “redefining consumer experiences” from functional beverages to snacks, offering operational support in addition to capital. L.A. Libations serves as Better Sour’s primary national broker, Hughes said.

“This investment fuels Better Sour’s next phase of growth and deepens our commitment to backing diverse founders who are reshaping the future of snacks,” said Stepper in a press release.

Investors are sweet on sour candy as of late. In the past month, creator-backed sour candy maker Joyride raised a $30 million round and gaming-themed brand Final Boss Sour secured $4 million in funding. And late last year, The Hershey Company acquired Sour Strips for an undisclosed sum with plans to “relentlessly accelerate” its growth within the category.