ciao coffee secures mid-six-figure financing

The Munich-based startup ciao coffee has closed a pre-seed financing round in the mid-six-figure range. The round is led by the impact investor network better ventures, and several business angels from the FMCG, e-commerce and FoodTech sectors are also involved. The aim of the financing is to establish and further develop the next-generation coffee alternative on the market.

Impact investors back sustainable coffee alternative

With the fresh capital, ciao coffee intends to invest specifically in brand building, retail expansion and product development. better ventures sees great potential in ciao coffee for a sustainable change in the beverage market. Investors from the consumer goods and media industry, such as Christoph Behn, Kathrin Pucknat and Thomas Gros, are also participating in the round.

ciao coffee shows how new brands are boldly rethinking markets - with a clear focus on sustainability, functionality, health and enjoyment

Tina Dreimann, co-founder and Managing Director of better ventures

The start-up was founded in 2024 by Tobias Hollaus, Felix Hellenberg, Dennis von Bismarck and Anton Reich. The team has many years of experience in FMCG, food innovation and brand management (including yfood, foodspring, Mondelez and Jacobs).

Coffee without beans rethought

The ciao coffee product concept is based on a recipe without any coffee beans. Instead, European ingredients such as rye, barley, chicory and dandelion root are used. The blend also contains specifically added caffeine, a vitamin B complex and iron, which is intended to ensure long-lasting alertness without the classic caffeine crash.

ciao coffee relies on well-known ingredients such as chicory, barley and rye, which have long been known as caffeine-free and digestible coffee alternatives under names such as Landkaffee or Muckefuck. The idea of functionally enhancing these traditional products through targeted enrichment with caffeine, vitamins and iron may be innovative, but it is not without controversy. Critics may wonder whether the combination of deliberate abstinence and stimulating additives is not a contradiction in terms. While some consumers may feel attracted by the functional added value. It remains to be seen whether the market will accept this reinterpretation as a category in its own right in the long term.

Successful market entry in DACH

Despite the early phase, ciao coffee is already showing strong traction in food retail. The product is currently listed in over 500 REWE, EDEKA and Billa Plus stores in Germany and Austria. According to the company, sales figures are on a par with established ready-to-drink brands such as Starbucks and Emmi.

The new packaging, which is currently being rolled out across Germany, is also generating a positive response and increasing sales, according to retail partners. Further talks are underway with additional retail partners with the aim of expanding the sales network by around 1,000 additional points of sale.

Focus on sustainable and functional beverage concepts

ciao coffee meets a dual zeitgeist: health-conscious caffeine consumption and ecologically responsible nutrition. The market for functional beverages in Europe is estimated to be worth several billion euros. ciao coffee also addresses the growing target group of people with intolerances to traditional coffee.