Swig, a beverage chain originating in Utah and known for its customizable 'dirty sodas,' is experiencing significant growth outside its home state, according to Andrew K. Smith, managing director and co-founder of Savory Fund, a private equity firm focused on restaurants [1]. Smith reported that Swig locations outside Utah are performing approximately 40% to 50% better than those within the state [1]. The chain currently operates in 23 states and expects to reach about 200 locations by the end of the year, with further expansion planned for the following year [1].
Swig's popularity has been fueled by social media, pop culture, and exposure from Hulu’s 'The Secret Lives of Mormon Wives,' which helped introduce the concept of dirty soda—a fountain drink mixed with flavored syrups, cream, and other add-ins—to a broader audience [1]. Smith emphasized that Swig's growth predates the show's influence but acknowledged its role in broadening the appeal and mystique of dirty soda [1].
Savory Fund, which manages over $750 million in assets, has invested in Swig as part of a broader strategy to capitalize on changing consumer beverage habits, likening Swig’s rise to the 'Starbucksification' of soda, teas, and lemonades [1]. Smith noted that the fund's investment approach focuses on supporting exceptional founders and building enduring brands, rather than chasing fleeting trends [1].
Smith also commented on consumer behavior across Savory Fund’s portfolio, observing that while spending has not stopped, customers are increasingly scrutinizing whether the food, service, and overall experience justify the price [1]. He stressed the importance of perceived value, stating, 'You've got to make sure that your value on the plate is the same as the dollars that they're giving' [1].
CONCLUSION
Swig's rapid expansion and strong performance outside Utah highlight a growing national appetite for customizable beverage experiences. Backed by Savory Fund, the chain is positioned for continued growth as it taps into shifting consumer preferences and the premiumization of soft drinks. The market response appears positive, with no signs of consumer spending slowdown in this segment.