The company said it will use the investment proceeds to increase world-wide production capacity of its technology to over 1 billion can-ends annually. It already has one major shareholder, Inventages Venture Capital.
'It is heartening to see a company attracting new funding'
"It took more than six years of R&D to finish the current XO re-sealable can end design. The equity investment by Inventure will facilitate our growth as we look to capitalize on multiple opportunities within the global beverage can marketplace," said Marc von Rettberg, CEO, Xolution.
Nick Mockett, head of Packaging M&A, Moorgate Capital, told BeverageDaily, compared with the amount of private equity which has been deployed in buy outs in the packaging sector, it is true there has been little venture capital or early stage investment in packaging, so it is heartening to see this company attracting new funding.
“Some of the most successful packaging companies are the ones which prioritise innovation, so this may prove a prudent investment,” he added.
“The virtues Xolution expose in the 'on-the-go market' may benefit from the growth in food service packaging or away from home packaging particularly where an application such as a bottle with a closure is not a valid option."
Xolution was founded in 2003 and has sales offices in the US, China and Russia, to drive growth. It has already partnered with suppliers Alpla, Hekuma and Z-Molds to design and roll-out over 1 billion lids annually.
Europe, the US, Middle East and Asia
The XO system for beverage cans ranges from 200ml to 1 litre, enabling beverage cans to be resealed multiple times. The company plans to build production units, making up to 200m XO can-ends a year in Europe, the US, the Middle East and Asia.
XO2.0 is not the first resealable can lid on the market, drinks cans that can be resealed are already popular in America.
Other companies include German startup can2close ‘C2’ founded in 2012, by Andreas Kleiner (CEO), Robert Kruetten and Moritz von Grotthuss; Ball Resealable End (BRE); and UK start-up Grenade Energy with its energy drink ‘Epic’ which uses Xolution's XO's ends.
Coca Cola’s Burn brand and Monster Energy use Ball’s BRE system.
"We are excited Inventure decided to invest in Xolution and share our vision. Resealability and portion-control have been the "holy grail" in this industry," said John Friedery, former president, Ball Corporation, Americas and Asia, and chairman, Xolution.
"Around the world, consumers are demanding packaging technology that fits in with their lifestyle and Xolution is by far the most advanced and scalable product in this space."