Rejected by the Dragons' Den investors, how did this alcohol free beer reach at £12m valuation?
In spite of being rejected by the Dragons Den, Mark Wong, the founder of IMPOSSIBREW®, set his sights on transforming the way people enjoy beer. His brand, IMPOSSIBREW®, went on to become one of the fastest-growing non-alcoholic beverages and ranked #26 on best start-ups of the year 2024.
In spite of being rejected by the Dragons Den, Mark Wong, the founder of IMPOSSIBREW®, set his sights on transforming the way people enjoy beer. His brand, IMPOSSIBREW®, went on to become one of the fastest-growing non-alcoholic beverages and ranked #26 on best start-ups of the year 2024.
He came onto my show in November 2023 and explained how he's built the business. As he's had such great success, I wanted to revisit his story and update it as a case study.
The Genesis of Impossibrew
Mark Wong's journey into the world of no and low alcohol beers began with a personal health scare.
"Ever since I was young, anything I could see that, well, I knew if you could brew a beer or make a cocktail, you’d get invited to parties at school."
Wong recalls.
However, his love for beer took a turn when he was around 21 or 22 years old. "That’s when I started having a bit of a health incident thinking that, well, actually I’m not supposed to be drinking anymore," he explains. This realization led Wong to question the role of alcohol in his social life and explore alternatives that would allow him to enjoy beer without compromising his health.
The Birth of a New Concept
Wong's quest for a healthier alternative to traditional beer led him to collaborate with university professors and a dedicated team. Together, they embarked on a mission to create a beer that offers the same social experience without the downsides of alcohol. "We started looking back into those plants to see, well, actually, there’s so much research, so much that’s been done that’s just not really been used," Wong says. This exploration into nootropics and plant-based ingredients became the foundation of IMPOSSIBREW®
Impossibrew's unique selling point lies in its use of nootropics—substances that enhance cognitive function. Wong explains,
"The goal of what we’re trying to deliver is that slight sense of one or two pint feeling, that slight sort of relaxation when you’re having a chat with friends."
By harnessing the power of natural ingredients, Impossibrew aims to replicate the relaxing effects of alcohol without the negative side effects.
Overcoming Challenges
Building a business from scratch is never easy, and Wong faced his fair share of obstacles. One of the early challenges was securing funding and gaining visibility. "We would just essentially homebrew and try and see how far we could push that boundary," Wong recalls. Participating in startup competitions and securing grant funding provided the initial boost IMPOSSIBREW® needed.
A pivotal moment for the brand came when a BBC producer reached out, inviting Wong to pitch Impossibrew on Dragon's Den, a popular TV show where entrepreneurs seek investment from established business moguls. Despite the daunting prospect of public scrutiny, Wong saw it as a once-in-a-lifetime opportunity.
"It just happens in one go. And then they sort of drop you in and see whether you swim or drown," he says. Although IMPOSSIBREW® did not secure investment from the dragons, the exposure proved invaluable.
"That evening, from when it aired, it’s an experience I’ll never forget. We did about a hundred K’s worth of sales in about a few hours."
Direct-to-Consumer Strategy
One of the key strategies that set Impossibrew apart is its focus on direct-to-consumer sales. Wong explains,
"We thought that I didn’t like carrying 10, 20 beers from a supermarket to bring it into my flat. And I thought, if we could get that direct experience delivered in, and if we can get that working, we could sort of have a direct relationship with our customers."
This approach not only allows Impossibrew to maintain control over the customer experience but also provides valuable feedback for continuous improvement.
Leveraging Social Media
In today's digital age, social media plays a crucial role in brand building. Wong and his team have effectively utilized platforms like Instagram and TikTok to document their entrepreneurial journey and engage with their audience.
TikTok: 1 Following. 80.9K Followers 2.9MLikes
"We started doing sort of really dynamic videos on Instagram and TikTok. It was just essentially just fully about the startup journey,"
This authentic and transparent approach has resonated with their audience, resulting in a significant following on both platforms.
Learning from Mistakes
Like any entrepreneur, Wong has made his share of mistakes. One notable misstep was investing a significant portion of their budget into a branding agency that did not deliver the desired results.
"I decided, I thought, well, brand seems to be a really important thing. I didn’t know much at the time. And I was like, OK, let’s spend 90% of all the budget we have on working with a big design branding agency,"
Wong recalls.
When the branding efforts fell short, Wong and his team had to pivot quickly. "The brand now is made on PowerPoint. When I realized there was no other hope, nobody else would come and save us. So just dig down and make it happen," he says.
13% uplift in Recharge Subscriptions with Relo
A key focus for IMPOSSIBREW® was to increase their online subscribers, as the product really lends itself to a habitual usage and this was a core part of their overall eCommerce strategy.
As with many eCommerce brands,IMPOSSIBREW®has really focused their eCommerce business on repeatable monthly revenue from subscriptions - allowing them to invest heavily in growing their entire operation.
After looking at their customer journey, they came to see that only a small percentage of their customers who had ordered OTP (one-time purchase) had gone on to become subscribers, which provided both a large problem and opportunity to improve.
By implementing Relo, IMPOSSIBREW were able to increase the amount of new subscribers gained from OTP's by 9%. A massive boost at very little cost.
Mark Wong
Key Takeaway Actions
Leverage Direct-to-Consumer (DTC) Channels:
Focus on building a direct relationship with your customers through your own website. This allows for better control over the customer experience, direct feedback, and higher margins by avoiding traditional retail gatekeepers.
Utilize Authentic and Engaging Social Media Content:
Document your entrepreneurial journey and share it on platforms like Instagram and TikTok. Authenticity and storytelling can resonate more with your audience than traditional advertisements. Focus on quality over quantity in your social media posts.
Listen to Customer Feedback:
Engage directly with your customers to gather feedback. This can be done through phone calls, emails, or social media interactions. Use this feedback to make continuous improvements to your product and customer experience.
Tipsy with the results
In January 2025 Andrew and the team turned to crowdfunding, looking for £500,000 investment, with pre-money valuation standing at £12million. With a week the offer was immediately overfunded by 256% of the target.
Cheers
