Boisson, a popular chain of non-alcoholic beverage stores, has closed all eight locations. The closures come just three years after the opening of its first store. The company has filed for Chapter 11 bankruptcy, which allows it to reorganize its debts.
The founder of Boisson stated that the rapid expansion of the business was the main reason for its financial troubles. "We grew too quickly," he said during a bankruptcy discussion.
This news marks a significant downturn for Boisson, which had been celebrated for its trendy and alcohol-free drink options. All store closures are effective immediately.
Boisson Closes Stores Amid Bankruptcy Woes
Boisson, a startup focused on non-alcoholic beverages, has shut down its retail locations. The company began in 2021 and quickly expanded to eight stores across the United States, including five in New York City and one in San Francisco, Los Angeles, and Miami.
Boisson aimed to cater to adults seeking sophisticated, non-alcoholic drink options. Their top sellers included a non-alcoholic rosé sparkling wine, a bittersweet aperitif, and a hemp-infused spirit. The company's motto, "We're evolving the way the world drinks," highlighted its mission to innovate within the beverage industry.
On their website, Boisson emphasized the importance of mindful consumption. "Every day, more of us are looking at labels, researching ingredients, and bringing mindfulness to the food we put in our bodies," the statement read. "Brilliant advances in alcoholic alternatives are helping more of us find healthier alternatives to alcohol. At Boisson, we bring you the best non-alcoholic alternatives worldwide."
Despite the company's commitment to providing high-quality, alcohol-free alternatives, Boisson has had to close its physical stores and restructure its debts under a Chapter 11 bankruptcy filing. The e-commerce side of the business remains operational, but the future of its retail presence is now uncertain.
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Boisson Restructures Amid Financial Woes
Boisson announced on April 5 that it is undergoing a Chapter 11 debt restructuring process. In a letter sent to suppliers, the company pointed to its "overly aggressive expansion plan" and "inefficient deployment of capital" as the primary reasons for its financial difficulties.
Nicholas Bodkins, CEO and founder of Boisson reflected on the situation in a LinkedIn post. He described his company as "a failed venture-backed startup that grew too quickly."
Bodkins detailed the challenges of simultaneously expanding three major business areas: brick-and-mortar retail, e-commerce, and wholesale import/distribution. He admitted that the company made mistakes and failed to secure sufficient capital to sustain its growth.
While the physical stores will close, Boisson will continue to operate as an online retailer. This shift comes as sales for non-alcoholic beverages have been rising sharply. Over the past five years, the market for these drinks has seen consistent double-digit growth, reports NielsenIQ.
The non-alcoholic beverage industry has seen a significant boost, with its market value growing by an impressive 31%. This increase has brought the industry's total revenue to approximately $510 million. The surge highlights a growing consumer interest in alcohol-free alternatives.
Despite Boisson's struggles, larger retailers such as Amazon, Walmart, and Target have successfully tapped into the growing demand for non-alcoholic alternatives, adapting quickly to this market trend.
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