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Newcastle-based alcoholic tea brand raises £1.4 million from investors

North East firm Noveltea, which makes a range of alcoholic tea-based drinks, has secured £1.4 million of new investment and is looking to grow its current headquarters in the city and expand further into the global market.

The money has been raised from the North East Venture Fund (NEVF) — supported by the European Regional Development Fund and managed by Mercia — the Government’s Future Fund, and the crowdfunding website CrowdCube.

It’s hoped that this new investment will help the Noveltea brand increase its product range and expand its current Newcastle headquarters, creating up to 20 jobs in the city.

The company currently has a foothold in the UK, German, and Chinese markets, but co-founders Vincent Effroth and Lukas Passia, are hopeful that this new investment will help them broaden their horizons across to the US and beyond.

In light of the recent funding, Lukas said: “We’re absolutely delighted to secure this investment and can’t wait to start pushing further on with our ambitious plans.

“Our unique drinks are already receiving international acclaim and this funding will allow us to grow and reach many more customers and introduce them to Noveltea.”

Thea Tebble of Mercia, who managed the NEVF investment, said: “Noveltea is a premium beverage in a range of unique blends.

“Its quality product and ambitious management team is a great foundation for future growth.

“The business has already achieved impressive traction and Mercia’s support will help it expand into new markets.”

The news comes just after Noveltea announced its fourth flavour of boozy teas, which will be the first of its limited-edition winter bottles.

Having turned down offers from three entrepreneurs on BBC’s Dragon’s Den, Noveltea’s creators appeared on the German version of the show in 2019, where they accepted €450,000 of investment from politician and businesswoman Dagmar Woehrl.

Woehrl now stocks the range of gluten-free, vegan, additive-free, and low alcohol teas across her hotel chain.