KEY’s Bold Move in 2025: Natural Energy Drink Startup Ready to Scale and Revolutionize the Market

By Agroempresario.com

Gone are the days when energy drinks were exclusively associated with athletes. Today, the world of functional beverages is evolving, with natural energy drinks becoming a go-to choice for a broad range of consumers. From those seeking better taste to individuals prioritizing healthier lifestyles, these drinks are capturing the attention of a new demographic.

A standout example of this growing trend is KEY, an all-natural energy drink powered by ketones. Launched in mid-2024, KEY made waves in the beverage market with a $4 million seed round led by AgFunder and supported by Alethia Venture Partners and AgFunder SIJ Impact Fund. The company’s founders, Karishma Thawani, a former Coca-Cola executive, and Dr. Tekla Back, previously of PepsiCo, have brought their expertise to the startup, with a focus on one key ingredient: Avela [R] 1,3-butanediol. This organic compound can be converted into ketones, offering a natural energy boost.

Since its debut, KEY has quickly expanded its presence across New York, Erewhon, and Sprouts stores, as well as online platforms such as Amazon and the company’s own website. The brand’s rapid growth can be attributed to its ability to appeal to consumers looking for healthier alternatives to traditional energy drinks. And with 2024 now behind them, KEY is turning its focus to what’s next for the brand in 2025.

In a recent interview with AgFunder’s Global AgriFoodTech Investment Report, Thawani and Back shared their experience of building a startup in 2024. “KEY had an incredible year,” Thawani said. “We raised funds in Q1, launched in Q2, hit mainstream retail by Q3, and met our annual targets in Q4—a wild ride in the best way.” Despite the challenges of breaking through in a crowded market, including the competition for consumer attention from global events like the Olympics and elections, as well as inflation and distribution disruptions caused by extreme weather, KEY was able to navigate these hurdles thanks to its unique value proposition and rapid scaling.

The beverage startup space, however, has never been more welcoming. “The industry’s maturity now means there’s a strong playbook and expert network to lean on,” Back explained. “Investors and retailers embraced us, and our unique proposition is energizing the category. We’re just getting started.”

KEY’s mission goes beyond simply selling a product—it aims to unlock human potential. The brand believes that everyone has innate abilities that can be harnessed to achieve their best. With a commitment to being zero sugar, all-natural, and affordable, KEY is positioning itself as a key player in reducing global sugar consumption and ultra-processed products. The brand also aims to make cutting-edge ingredient innovation accessible to a wider audience, championing inclusivity and creating a diverse community beyond the typical extreme sports or solo achievements.

Looking ahead to 2025, KEY is ready to scale its efforts even further. “With our 2024 launch behind us, 2025 is all about scaling brand awareness and expanding retail distribution,” Thawani said. The company plans to engage in bold, experiential marketing, with street activations in New York and immersive event sampling designed to bring the brand to life. In addition, KEY will partner with influencers and educators to amplify its message and reach new audiences.

Later in the year, KEY will kick off its next fundraising round, and the team is eager to connect with potential investors. “Exciting things are ahead for KEY in 2025,” said Thawani. “Stay tuned.”