Icelandic Glacial secures US$66m in funding to accelerate expansion

USA – California based spring water brand, Icelandic Glacial has raised US$66 million in financing, to accelerate the company’s growth in the USA and other markets.

The financing includes US$35 million in funding from BlackRock’s US private credit team and US$31 million in new equity to new and existing investors.

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“We are delighted to announce US$35 million of funding from funds managed by BlackRock, one of the world’s leading investment institutions,” said Jon Olafsson, co-founder and chairman of Icelandic Glacial.

“Their investment in our company substantiates the progress we have made in recent years to become one of the leading premium water brands in the world.” 

Olafsson noted that the financing comes as the company readies to aggressively expand its footprint in U.S. retail and on-premise accounts, as well as international expansion in China, Southeast Asia, and the Middle East.

In 2019, Icelandic Glacial has added about 8,000 new retail stores — including expansions in Walmart, Target, and Kroger — bringing its total footprint to roughly 24,000 stores nationwide, reports Bevnet.

Dan Worrell, managing director at BlackRock US Private Credit, who has joined the board of Icelandic Glacial said “We are very excited to invest in Icelandic Glacial.

“We have been watching the development of the brand for some time and are excited about our role in helping fund the further growth of Icelandic Glacial in the USA and throughout the world.”

Icelandic Glacial is bottled at source from Iceland’s Ölfus Spring, which the brand says provides “customers with the highest level quality of natural spring water.”

As a result, the water “possesses exceptional balance, featuring a naturally low mineral content and a naturally alkaline pH of 8.4”.

According to Olafsson, the brand’s still bottled water line has 28% retail penetration in the U.S., and only 5% ACV for its sparkling products, which launched last year.

In addition to unflavored sparkling varieties, which are available in both plastic and glass packaging, the brand has introduced a line of flavored sparkling waters, including elderflower, lemon, and lime varieties.

Since launching sparkling, Olaffson said Icelandic Glacial has been able to significantly grow its presence in on-premise accounts, particularly by marketing the flavored line as a cocktail mixer. This fall, Icelandic Glacial plans to add blood orange and lemongrass flavors to the line.

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