Spadel's The Source Ventures Invests in Living Things' Gut‑health Sodas

Why It Matters

The funding validates gut‑health sodas as a mainstream growth engine and gives Spadel a strategic entry into the fast‑moving functional beverage space, potentially reshaping market dynamics.

Key Takeaways

• Spadel's VC arm backs gut‑health soda brand
• Living Things reaches 25,000 UK retail locations
• Investment taps rapidly expanding functional beverage market
• Brand founded only two years ago
• Growth includes supermarkets, cafés, and specialty stores

Pulse Analysis

The global appetite for functional beverages has surged as consumers prioritize health benefits beyond basic hydration. Gut‑health drinks, fortified with prebiotics, probiotics, and fiber, sit at the forefront of this shift, capturing a market that analysts project to exceed $10 billion by 2028. This momentum is driven by rising awareness of the microbiome’s role in digestion, immunity, and overall well‑being. Brands that embed scientifically backed ingredients into convenient formats—such as carbonated sodas—are uniquely positioned to convert traditional soft‑drink shoppers into health‑conscious repeat buyers.

Living Things, a British startup launched in 2022, has quickly leveraged this trend. Within two years the company secured shelf space in more than 25,000 outlets, ranging from Tesco and Waitrose to boutique cafés and delicatessens. Its portfolio blends classic soda flavors with gut‑supporting fibers, offering a taste‑first proposition that differentiates it from niche probiotic teas. The Source Ventures, the venture arm of Belgian water group Spadel, recognized the brand’s rapid distribution and scalable formula, committing capital to accelerate product development and cross‑border expansion.

The investment underscores a broader strategic pivot among traditional water and beverage groups toward functional categories. For Spadel, the partnership provides a foothold in the high‑growth UK market while diversifying its portfolio beyond plain bottled water. Industry observers expect additional VC activity as larger players scramble to acquire or partner with emerging gut‑health brands. If Living Things sustains its outlet growth and expands internationally, it could set a benchmark for how niche health‑focused sodas achieve mainstream acceptance, reshaping the soft‑drink landscape.

Deal Summary

Belgian water group Spadel's venture arm, The Source Ventures, announced an investment in UK beverage maker Living Things, which produces gut‑health focused soft drinks. The deal was disclosed on March 13, 2026, and the amount was not disclosed.