The Canned co*cktail Backed By Jay-Z That's Taking America By Storm (2024)

Jay-Z is making his way into the red-hot canned co*cktail industry, backing a beloved gin-based concoction from Finland that's seeing explosive growth in the U.S. and a growing list of celebrity endorsers.

Last week, the rapper's venture capital firm, Marcy Venture Partners, announced it was making a "significant" investment into the ready-to-drink Finnish Long Drink brand.

The actor Miles Teller, DJ Kygo, former Boston Bruins goalie Tuuka Rask and professional golfer Rickie Fowler are already partners with the maker of the sipper that's long been popular in its namesake country.

"I became an investor in The Finnish Long Drink because I think it's the best in the market and has an authentic backstory," Teller said when he increased his investment stake at the beginning of last year. "It's high-quality stuff and I think consumers deserve a product that's good and refreshing."

The celebrity partnerships and investments will help Finnish Long Drink (the brand) expand its "store footprint and marketing efforts," according to co-founder and CEO Evan Burns.

"It was clear Marcy Ventures saw the same big potential we do in the brand to bring Finland's best kept secret to more Americans," Burns told Newsweek.

"It was love at first sip. Just have a taste and it's clear why this national treasure of Finland is now storming North America," Larry Marcus, the co-founder and managing director of Marcy Ventures, told Newsweek. The firm has not disclosed the specifics of its investment.

According to CB Insights, Finnish Long Drink has now raised over $41 million across 14 rounds of funding.

Jay-Z's investment is significant because of his billion-dollar track record in the alcohol space. In 2021, the rapper and business mogul sold his 50 percent stake in Armand de Brignac Champagne for an estimated $315 million.

He followed that up last year by selling his controlling interest in D'USSE Cognac to Bacardi for $750 million.

Marcy Venture Partners' portfolio include investments in Rihanna's Savage X Fenty lingerie line, streetwear marketplace StockX and robot-powered Stellar Pizza.

The history of the 'long drink'

In 1952, Finland was preparing to receive an influx in tourists for the Helsinki Summer Olympics. In order to help vendors handle the new wave of thirsty customers, Alkoholiliike, the national alcoholic beverage retailing monopoly, introduced two brands of pre-mixed, ready-to-drink gin co*cktails known in Finland as "long drinks." (That's the "legend of 1952" reference printed on each Finnish Long Drink can.)

In Finland, the "long drink," or "lonkero" which literally means tentacle, is commonly made with grapefruit soda and gin, though many add touches like cranberry juice and lime.

After Finland joined the European Union in 1995, the government was no longer allowed to control the production of the drinks on its own, and several long drink brands were born.

Despite the co*cktail's popularity overseas — it's also sold in China, Japan and Taiwan — it's path in the U.S., where the canned co*cktail and hard seltzer market has become extraordinarily crowded, is far from certain. Boston Beer, the alcohol behemoth and parent company of Sam Adams, tried marketing a brand called Bevy Long Drink that was pulled off shelves last year due to lack of sales.

Still, the beverage maker has already seen staggering growth stateside, selling 1.8 million cases last year, up from 33,000 in 2019. Sales grew 114 percent from 2021 to 2022, the company told Newsweek. Through mid-April, retail sales were up 92 percent year-over-year, according to NielsenIQ data. Burns said the company sold over 100 million cans in that period.

"Our ambition is to ten times the size of the business," Burns said. "People may find that crazy, but the data supports it's possible."

Finnish Long Drink's off-premise sales — such as grocery and liquor stores — have seen triple-digit growth in the last year, per NielsenIQ, far outpacing similar canned co*cktails made by better-known brands like Bacardi and Jack Daniel, which also benefit from far greater distribution.

The company also touts the "highest net promoter score in alcohol," according to Burns. He said 91 percent of Finnish Long Drink's customers are likely to recommend the beverage to a friend.

"Most people don't realize that Long Drinks are bigger to Finns than Guinness is to the Irish," Burns said.

Now Burns is eyeing this summer as a coming out party of sorts for the brand in the U.S.

"People are obsessed with the taste, and once they're introduced to what long drinks are and have the chance to try it, they fall in love," he said.

"It really is like nothing else in the market — the taste is uniquely refreshing which makes Long Drink perfect for a hot summer day be it lakeside, at the beach or by the pool."