Trendy Beverage Brand, Mela, was Looking for a Financial Partner in Growth
Mela Watermelon Water, founded in 2019, rapidly expanded from a startup to a thriving business in the beverage industry.
Starting with a vision inspired by Southeast Asian juice trends, the concept was ultimately imported to the United States. Later, Dominic Purpura, founder of this iteration of Mela Water, came across the business in San Diego. After seeing its potential, Dominic purchased the rights to the distribution relationships, recipes, and copacker agreements and Mela was born in September 2021.
Before Propeller
Initially, Mela Watermelon Water operated without dedicated finance or accounting support, with the founder prioritizing sales and marketing efforts. Later, a team member with a finance background joined to oversee financial management. The absence of a robust accounting system and controls posed challenges in effectively managing financial operations and scaling the business. In search of outsourced accounting services, they came across outsourced accounting firms who specialized in tech rather than CPG and were ultimately referred to Propeller due to its expertise in the CPG sector.
Although initially unable to afford such services, the $20M team later recognized Propeller’s value and chose to engage.
Propeller Solutions
The onboarding process with Propeller was critical. Mela transitioned from QuickBooks to a more robust platform, which required significant clean-up and implementation. Propeller CFO Dan Sorensen and his team helped Mela navigate this process efficiently, addressing discrepancies and optimizing their systems for better financial management and reporting. Mela’s current CFO already had some financial background but lacked expertise in CPG and wanted a partner to bounce ideas off and provide insights into best practices within the industry. Propeller’s fractional CFO services perfectly complemented his skills, offering strategic guidance, reporting functionality, and a reliable sounding board for financial decisions. Since then, Propeller has been an ongoing partner with Mela as they navigate rapid growth
Results With Propeller
Mela has grown significantly – starting with two employees and have since grown to 17. Mela’s sales have risen from $1.4 million to $5.5 million and are projected to hit $17 to $20 million this year, ending with about 20 employees. The team is also expanding their distribution with major retailers like 7-Eleven, which will bring the premium watermelon beverage to 6,500 stores across CA, TX, FL, VA, NY. Additionally, the brand will be launching in United Supermarkets with 95+ stores across TX in April while also doubling its presence in Target nationwide to 688 total locations, further expanding its retail portfolio.
Success Speaks
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