Cove Soda, a Halifax-based functional soft drink company, announced that it has raised $15 million USD in a Series A funding round led by Vanterra Ventures. Additional participation came from RiverPark Ventures, The Palm Tree Crew, Simple Food Ventures, and a group of strategic celebrity and athlete investors, including Diplo, Miles Teller, The Chainsmokers, Michael Rubin, Dan Lourenco, Jack Eichel, Aaron Ekblad, Matt Chapman, and JD Martinez. The funding will support broader North American retail growth, new flavor development, and key hiring across the business.
Cove has rapidly expanded since launching its zero-sugar probiotic soda line in 2023. The brand is now stocked in more than 7,000 retail locations across Canada and the United States, including nationwide distribution at Costco, Target, Whole Foods Market, and Sprouts.
Earlier this year, Cove announced a major distribution partnership with Keurig Dr Pepper Canada, which is expected to significantly accelerate retail penetration by leveraging the beverage giant’s logistics network and long-standing retailer relationships.
Founded by brothers John and Ryan MacLellan, Cove was created to provide healthier alternatives to mainstream carbonated soft drinks while maintaining familiar flavor profiles that appeal to a broad consumer base. The company positions flavor innovation and functional benefits as core elements of its brand identity, supported by Ryan’s background in physics and product formulation.
Vanterra Ventures Principal Ellis Fried has joined Cove’s Board of Directors as part of the financing. The investor group backing the round reflects growing interest in beverage brands that combine nostalgia-driven taste profiles with wellness-focused ingredients. Cove believes its early adoption indicators and broad retail footprint position it to compete in a category that continues to shift toward functional, clean-label offerings.
Cove Soda products are available through Amazon as well as primary retail channels in both the U.S. and Canada.
KEY QUOTES:
“Cove represents the next wave of innovation in the $250 billion carbonated soft drink market. Partnering with Vanterra Ventures marks an exciting step forward as we accelerate our momentum and bring our vision to life heading into 2026 and beyond.”
John MacLellan, Co-Founder & CEO, Cove
“Flavor is at the forefront of everything we do at Cove.”
Ryan MacLellan, Co-Founder & Chief Innovation Officer, Cove
“At Vanterra, we seek out innovative companies disrupting massive markets within consumer health. Cove is emblematic of that strategy as it brings the world’s first zero-sugar functional soda to market with delicious, nostalgic flavors, quickly winning over consumers across North America.”
Ellis Fried, Principal, Vanterra Ventures and Board Member, Cove
