What does “smart money” actually mean in beverage — especially in one of the most capital-intensive categories in CPG?

In this sponsored episode, we sit down with Karen Xiang, Investment Lead at Btomorrow Ventures, the corporate venture arm backed by British American Tobacco. And we go deep into how corporate venture capital is evolving — and what it really means for founders building functional and full-size beverage brands today.

Btomorrow Ventures (BTV) is not a traditional VC fund. With a £150M first fund and a newly launched £200M second fund, BTV is investing across “better brands” and “better habits” — with a particular focus in the U.S. on full-size functional beverages and functional snacks. But capital is only part of the story.

Karen explains how BTV’s new in-house growth platform is designed to unlock operating leverage — connecting portfolio brands to distribution pilots, commercialization support, data analytics, and internal expertise inside a global FMCG infrastructure.

For founders, this episode is an insightful discussion about:

•  What corporate venture capital (CVC) actually is — and how it differs from traditional VC

•  What to ask before taking strategic capital

•  Why beverage remains a difficult category for many VCs — and what that means for your cap table

•  How to think about partnering with strategics without becoming “the last fry on the truck”

Karen also offers a thoughtful framework for avoiding trend-chasing in drinks. In a world of protein pivots and format fads, she argues that fundamentals — consumer clarity, occasion ownership, distribution sequencing — still win over time.

For investors, we explore how BTV thinks about co-investing rather than competing — and why having a strategic partner on the cap table can accelerate growth across the entire syndicate.

If you’re a founder navigating functional beverage, a co-investor evaluating corporate capital, or an operator thinking about long-term category shifts, this episode offers a rare inside look at how one of the industry’s more nuanced CVC models is building in the U.S.

As always, we focus on the mechanics of growth — not just the headline numbers, but how brands actually scale.

Listen in for a grounded, strategic conversation about capital, distribution, and the future of value-add investing in drinks.

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Erica Duecy, co-host: Erica Duecy is founder and co-host of Business of Drinks and one of the drinks industry’s most accomplished digital and content strategists. She runs the consultancy and advisory arm of Business of Drinks and has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies.

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Instagram @ericaduecy

Scott Rosenbaum, co-host: Scott Rosenbaum is co-host of Business of Drinks and a veteran strategist and analyst with deep experience building drinks portfolios. Most recently, he was the Portfolio Development Director at Distill Ventures. Prior to that, he was the Vice President of T. Edward Wines & Spirits, a New York-based importer and distributor.

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Caroline Lamb, contributor: Caroline is a producer and on-air contributor at Business of Drinks and a key account sales and marketing specialist at AHD Vintners, a Michigan-based importer and distributor.

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Instagram @borkaline

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