When Higher State Co. founder, Samantha Manning, saw her functional beverage brand, the  crystal-infused sparkling water, Lunae Sparkling (“Lunae”), being used as a substitute for alcohol by many, ideas bubbled up for another beverage-related venture. So in 2019, Sam launched her second brand, Monday Distillery (“Monday”), which was the first Australian owned and operated non-alcoholic RTD (‘ready-to-drink’) cocktail range in the market. Thus today, the Company consists of two brands:

• Monday Distillery (82% of FY22 sales): Range of premium, non-alcoholic, sugar-free, ready-to-drink beverages (RTDs), infused with distilled botanicals. 
• Lunae Sparkling (18% of FY22 sales): The world's first functional beverage pairing botanicals with crystal frequency. Completely sugar & sweetener-free, it resonates with those bringing mindfulness and self care into their daily ritual.

The Group has a strong emphasis on innovation and new product development. Both brands use only the highest ingredients derived from steam distilled plant extraction. This process delivers an intense flavour experience from botanicals, fruits, herbs and bark compounds.

The Group prides itself on being sugar-free after developing their own proprietary sweetener from only the highest quality compounds from the stevia plant. This formulation is focused on providing sweetness in our beverages without the unpleasant aftertaste known from artificial sugar-free ingredients such as erythritol and xylitol. Monday’s range is also free from added glycerin and thickeners commonly used in the non-alcoholic drink industry as a way of mimicking the body of alcohol.

For Monday, this innovation is based on the belief that a great non-alcoholic drink is one that has all of the elements of a great alcoholic one.  First and foremost, Monday delivers on taste and experience. Monday is a premium, ready-to-drink cocktail range with all the components that make a drink feel balanced and harmonious. Acidic and Sweet. Botanical and bitterness. Monday loves exploring and innovating with trigeminal sensations which are found commonly in alcohol.

By revolutionising the way people look at a night out with friends, Monday delivers what people taking a break from alcohol or those going through periods such as “Dry July” need, a refreshing carbonated drink, with premium flavours that everyone wants to try. A few RTDs from their core range include gin (Classic G&T, Exotic Spice G&T), rum (Dark & Stormy), whiskey (Dram & Dry) and tequila (Paloma).

Both brands have proved a hit with their customer base. Lunae has over 22,800 followers on Instagram, with organic growth evident on Facebook and Pinterest. Monday has created a community of 15,000+ followers across all of their social media platforms. Across the country, news coverage has accelerated their marketing efforts, with over 62 pieces about Monday published, including Body+Soul, The Australian, Smart Company and many more.

The Group is seeing huge financial growth. In FY22, Monday generated revenue of $1.7m (growing at 90% CAGR over the last 3 years), forecasted to hit $10m in FY24.

Sam is now joined by her husband, Haydn Farley. Together, they run the Monday distillery’s operations from Port Fairy (marketing and Head Office), while all manufacturing & warehousing is Geelong based. They distribute through 1500 major retailers across Australia, including Endeavor (Dan Murphy’s), On the Run, Coles Local, Sans Drinks and many more independents. 

Monday Distillery Product Range

Our Monday Distillery range prides itself on being a premium, alcohol-free, sugar-free RTD. Taking inspiration from classic cocktails, the non-alcoholic spirits created by Monday offer an overall sensory experience to mimic that of its alcohol-containing counterpart. The mouth-feel of each variant is carefully considered. 

The range is sugar-free, and we are working hard to ensure that this does not compromise on the taste. Hence, our product knowledge, exploration, invention and innovation are all housed within a package that is good-to-go.

All Monday Distillery products are:

• Refreshing carbonated taste 
• Non-alcoholic
• Preservative, sugar and gluten free
• No artificial additives or flavours 
• Naturally sweetened with stevia.
• Low calorie

Lunae Sparkling Product Range

The Lunae Sparkling drink range includes different types of crystals paired with botanicals to help compliment the intended positive effects of each crystal elixir. The botanicals we use add taste to Lunae Sparkling drinks and have known health benefits. Furthermore, people have been making crystal water for centuries to help bring positive energy to both healing and spirituality.     

All products are:

• Sugar-free
• Non-Alcoholic
• Gluten-free
• Cruelty-free
• Full of Beauty 

Monday Distillery

Monday Distillery’s (‘Monday’) core business model is the production and distribution of a range of premium, non-alcoholic drinks, to their loyal and growing customer base, via Online, Grocery, Petrol and Convenience (P&C stores), On Premise and Off Premise channels.

The online channel is executed through a dedicated website (https://mondaydistillery.com/) and packaged sales, either online or in stores such as Dan Murphy’s, Woolworths, Coles Local and IGA, as well as through many other local eateries, grocery stores and cafés across Australia. 

Our core operations such as packaging and warehousing are based at our sites in Geelong, however, as Monday’s head office is based in Port Fairy, Victoria, operations such as sales and marketing are run from here.

Monday’s distribution network comprises of:

• Online: Our online, direct-to-consumer (D2C) model allows us to directly service customers online via our website. This channel allows for both one-time purchases and subscription-based purchases, stemming from our customer loyalty. As of FY2022, online sales comprises 30% of total revenue in Australia.
• Grocery, P&C Stores, Off Premise: We have signed with 1200+ major retailers across Australia, including Dan Murphy’s, IGA, On the Run, Coles Local, Sans Drinks, Blackhearts & Sparrows and many more independents. Monday aims to expand through new distribution channels by continuing our robust pipeline of new customers, including distributing through 7-Eleven & Harris Farm stores from September 2022.
• On Premise: Through distributors we are stocked in 300+ venues including bars, cafes and restaurants.

International revenue is just beginning to gain traction, with consistent growth throughout late FY2021. Currently, our main international distributors are in Singapore, Malaysia and Indonesia with discussions currently being held with others in New Zealand, India and UAE.

For Lunae Sparkling's core business model, refer to the Offer Document for Higher State Co above.

Higher State operates across two different but related categories the non-alcoholic drinks industry and the functional beverages (refer to Section 2.8.1 in Offer document for more information).

The Global & Australian Non-Alcohol (NoLo) RTD Landscape

The global NoLo market has reached almost $10bn in value in key markets, and is growing at +8% CAGR to 2025 (versus regular alcohol volume growth of +0.7%). In some markets, such as the US, this is as high as 28% and in Australia, forecasts suggest it will grow by 16% by 2024.

Australia’s non-alcoholic drinks market is set to experience +16% volume growth by 2024 (Source: IWSR). More specifically, NoLo RTDs and NoLo spirits are both expected to post about +14% CAGR volume growth. New product development and increasing consumer demand for no/low spirits will see the category experience the largest volume CAGR rate, 2020 to 2024. The NoLo spirits category, which currently has a 0.6% share of the NoLo market, is set to increase in volume consumption largely due to growing concerns about healthy lifestyles amongst consumers. 

The NoLo movement complements the health-orientated lifestyle of many Australians, and provides more occasions to enjoy NoLo beverages. As spirits is one of the fastest growing NoLo markets, Australia continues to present unique opportunities for NoLo development, with many home-grown brands seeing global attention. This growth has seen traditional drinkers opting for NoLo alternatives on select occasions, as well as an overall shift to healthier lifestyles and moderation. With drinks-orientated occasions playing a key role in Australian social life, a shift to adopt healthier alternatives without compromising flavour or sociability is set to change the narrative around drinking culture In Australia as we know it.

Equity crowdfunding allows Monday and Lunae’s customers to join in the fantastic growth prospects of Higher State Co., and see the business scale to new heights. Customers and investors alike who resonate with Sam and Haydn’s purpose-led brands, can be co-owners in the Company. Join them as they disrupt and revolutionise the drinks space in Australia and continue crafting innovative, non-alcoholic RTDs.