SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate

Page created by Esther Matthews
 
CONTINUE READING
SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate
BINMAG.COM $9.95

   SPA GIRL COCKTAILS
   The Founder, The CEO and The
 Rainmaker - How Three Women Are
  Shaking Up The Liquor Business

+ VODKA • MEZCAL • RUM • CRAFT BREWERS • SAKE • WINE BUZZ • THE FIND • AND MORE
SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate
S P A G I R L C O C K TA I L S
The Founder, The CEO And The Rainmaker - How Three
     Women Are Shaking Up The Liquor Business
                                    Written by Allison Levine

Ready-To-Drink (RTD) cocktails first saw          percent increase. According to a Mintel report
success in the 1990s and 2000s with sweet,        in November 2019, “one in five drinkers is
easy-drinking drinks. The revival of RTDs has     reducing their alcohol consumption, however,
introduced craft, super premium products that     RTDs were the only alcohol segment to
use natural ingredients to produce low-calorie    experience an increase in consumption over a
and low ABV drinks that fit consumers’ health-    2018 measure” and the ready-to-drink spirit-
focused lifestyle.                                based cocktail category grew by 40.7 percent in
                                                  2018. According to DISCUS, spirits-based pre-
The popularity of RTDs is reflected in the        mixed cocktails grew 7.5 percent to $351 million
numbers. In 2018, the mixed drinks category       in the U.S. in 2019. And Nielsen reported that
(ready-to-drink, malt beverages and pre-mixed     the RTD prepared cocktails category grew 83
cocktails) was the most buoyant segment           percent to $105.37 million in the off premise for
within the U.S. alcohol segment with a 6.1        the 52 weeks ending in December 28, 2019.
18 BIN 2020
SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate
Riding on this trend is Spa Girl             Spa Girl Cocktails was producing less         After meeting Karen, Alisa made the
Cocktails, a woman-owned, woman-led,         than 700 cases per year. Alisa bought         jump from “lipstick to liquor”. Coming
award-winning, better-for-you vodka          100 bottles and sent them to high-            from the beauty industry where the barrier
cocktail company. Spa Girl Cocktails         end executives, including 50 female           to entry was low but the competition
was founded by Karen Haines, an              executives, and took bottles to cocktail      high, she was not intimidated by the
entertainer, interior decorator, and cook.   parties. She put Spa Girl Cocktails in        liquor business. Alisa explained, “I chose
Always entertaining, she would create        blind tastings against other RTDS. The        to enter the beverage alcohol industry
different drinks to share with her guests,   response was incredibly positive. What        not only because I was completely
including the healthy, gluten free, vegan                                                  wowed by Spa Girl Cocktails when first
cocktails that would become Spa Girl                                                       introduced, but because I believe women
Cocktails.                                                                                 are underserved consumers across the
                                                                                           total alcoholic beverage industry—
With a great product in her hands,                                                         even though they account for nearly
Karen looked to grow the business.                                                         half of the category’s total consumer
Enter Alisa Marie Beyer. A noted serial                                                    base. Spa Girl Cocktails is an emerging
entrepreneur, Alisa worked in the                                                          brand with a product technology that
beauty business for years. Described as                                                    represents the future, not the past, of the
a “turn-around CEO”, she has worked                                                        alcoholic beverage industry. It’s time for
with both large and emerging beauty                                                        women to make their mark in premium
brands creating iconic, award-winning                                                      spirits.”
products, while building a power team of
women around her.                                                                          Alisa took over as CEO of Spa Girl
                                                                                           Cocktails in July 2019 and built a women-
While Alisa did not know the liquor                                                        led executive team which includes
business, she had always wanted to do                                                      Robin McGee, former CEO of Osmosis
something in the industry. Growing                                                         Skincare, who heads up sales. Founder
                                                                  Alisa Marie Beyer, CEO
up, she would listen to stories about                                                      Karen Haines stayed on to lead product
her great, great grandmother, Estella                                                      development. As CEO, Alisa led an
Houston Fogelman, who bottled her            was not to like about a pop-and-pour          acquisition of the company in October
own booze on her farm in Pennsdale,          RTD vodka martini that is gluten free,        2019. In addition, she has secured and
Pennsylvania in the late 1800s.              vegan, and made with organic cane             signed an exclusive national contract
                                             sugar and comes in at 48 calories and is      with the top distribution partner in the
In early 2019, Alisa met Karen Haines at     33 proof? “People want healthy, but they      United States, Southern Glazer's Wine
an event in Hollywood, California. She       also don’t want to drink a lot to get a       and Spirits (SGWS). And in January
tasted Spa Girl Cocktails and thought,       buzz,” explained Alisa.                       2020, they closed a seed funding round
“ooh, that is amazing.” At the time,                                                       of $2.5M.
SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate
Spa Girl Cocktails was capitalizing on        such as that on-premise business was not a   it best, “pivot don’t panic.” They decided
the growing RTD market and poised             viable growth area for at least 18 months.   to concentrate and grow national chain
to become a powerhouse brand within           As for off-premise, they would have to       retail stores. They shut down three
24 months. They were also about to            change how they sold every bottle or         states that they did not see as viable
close on a Series A for $5 million but        can at grocery stores as they could not      markets because they could not go into
then Covid-19 hit in March 2020.              go to the store to track inventory. They     the market and train and instead focused
While on-premise businesses closed,           could also not do demos or tastings or       resources on California and Nevada.
there was a surge in off-premise sales.       host any consumer tastings which would       Using technology innovation, they
Customers began looking for easy ways         affect brand building. Knowing that retail   launched SpaGirlCocktails.com to drive
enjoy cocktails in their own homes and        stores expected brands to perform at         sales, tell the story of the brand and build
ready-to-drink (RTD) cocktails were the       higher levels, they recognized that their    a community and increased business
answer.                                       time and ability to grow a new brand was     by 20% in the first month. Spa Girl
                                              limited. In addition, the supply chain was   Cocktails also established a relationship
While many other brands have struggled        disrupted, and retail stores were more       with a big distributor in South America
to adapt to life during Covid-19 and have     interested in focusing on known brands       who has an order for 5,000 more cases
seen numbers drop, Spa Girl Cocktails         over new brands. And there would be no       being shipped out in October.
has expanded. Why? They did not               opportunities to set up in-person meetings
hesitate or hibernate when Covid hit.         or trainings with sales representatives or   Since October 1, 2019, through July 2020,
Instead, they acted immediately. After a      buyers. Communication channels would         amid COVID-19, Spa Girl Cocktails has
cash flow analysis, they froze business for   only be digital so online presence was       gained traction and results. Spa Girl
a few days while they identified the top      more important. And the final reality was    Cocktails is available in 354 retail and
realities and roadblocks and then began       that the supply chain from China was at      grocery stores in California and Nevada,
looking longer term.                          risk.                                        including 11 nationally recognized
                                                                                           chains - Whole Foods, Ralphs, Vons,
Spa Girl Cocktails set sales targets and      Recognizing the realities, Spa Girl          Pavilions, Albertsons, Bristol Farms, Lazy
knew where they were going. And then          Cocktails  determined    actions    to       Acres, Safeway, and Total Wine & More.
they looked at the realities and roadblocks   overcome the problems. Alisa explained       Spa Girl Cocktails has seen quarter-over-
20 BIN 2020
SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate
quarter growth of 40 percent in authorized   Handcrafted in southern California with       flavors or ingredients. What you smell
PODs, and a 34 percent growth in newly       plant-based ingredients, all formulas are     on the nose is what you taste on the lips.
active PODS, as well as a 48 percent         vegan, gluten free, low calorie, low sugar,   And unlike other RTD cocktails that
growth in new authorized SKUs. The           and low carb, and have no artificial          are lower proof, at 33 proof, Spa Girl
brand continues to sell-through at retail    flavors, colors, or sweeteners. The corn is   Cocktail gives you a nice buzz without
jumping from an average of 2.2. cases sold   sourced from a family-owned farm in the       more calories.
per POD per month 1A 2020 to 6.2 cases       Midwest and is distilled in Mira Loma,
sold per POD per month.                      California. This corn is naturally sweeter,   Spa Girl Cocktails, available in 750 ML
                                             resulting in a sweeter vodka which means      bottles or 200 ML cans, can be enjoyed
Spa Girl Cocktails ran a promotion with      they do not need to add as much sugar         right out of the can or blended into a
Morning Brew and sold over 534 bottles       (which would be more calories).               delicious cocktail. Simply add seltzer or
in just 6 hours. And in April 2020, Spa                                                    club sold for a light and refreshing drink.
Girl Cocktails launched on WineGlobe.        Spa Girl Cocktails appeals to a large         It is the perfect cocktail for someone who
com for a 30-day promotion. They             consumer base that is seeking new             wants to enjoy a drink or two and feel
became the #1 new product sold within        products and offerings that reflect the       good.
24 hours and became the #1 reviewed          clean and healthy lifestyle they lead.
product on the site within first seven       “When I worked in beauty, I learned           And there is more to come. Spa Girl is
days of being live. Spa Girl Cocktails       very, very quickly that status-quo is         soon releasing a pop and pour Sparkling
sold 306 bottles in 30 days, selling 611%    actually the death knell for a brand.         Vodka Cocktail, a carbonated version
more units than other top spirits such as    Beauty consumers were among the               with new flavors, including pineapple,
Johnnie Walker, Tequila Patron, Captain      first to demand clean products: clean         strawberry and pure (unflavored and
Morgan, Angels Envy and Ketel One.           ingredients, clean formulas, eco-certified    lower calorie). And Spa Girl has
And they maintained the #1 selling ‘sold     packaging, cruelty-free…yet in alcohol,       partnered with Bacardi to create the Spa
out product’ of 21 new products for first    few brands are talking about clean            Girl Spritzer which will launch for the
2 weeks.                                     or better-for-you products. Women             holidays. This enjoyable cocktail is made
                                             today count calories, worry about sugar       with Spa Girl Cocktails Vodka (any
While sales have continued to increase,      content and want to know the origin of        flavor), St. Germain Elderflower Liqueur
Spa Girl Cocktails has also realigned        ingredients, and they need an alcohol         and Fever Tree Club Soda or Prosecco.
everything to digital and has seen           beverage that reflects this need,”            Spa Girl is also planning a first-of-its-
increased press coverage. The brand has      expressed Alisa.                              kind "popscicles with buzz for grown-ups"
been featured in leading business and                                                      for summer 2021.
consumer publications including Forbes,      Spa Girl Cocktails is now the #1 selling
Inc., Essence, Cosmopolitan, InTouch         vodka martini cocktail in the premium         Spa Girl Cocktails’ message is “drink
Weekly, New Beauty Magazine, San             prepared cocktail market, according to        clean, live happy” and nothing will stop
Diego Magazine, and San Diego Business       Nielsen (Nielsen RMS, California x            this brand from succeeding.
Journal. Spa Girl Cocktails was also         AOC, YTD though 7/4/20). Their vodka
named the top 3 canned cocktail of 2020      martini cocktails come in three signature
by Good Housekeeping.                        flavors: peach, pear, and cucumber. The
                                             flavors are derived from a natural process
Spa Girl Cocktails is the right brand and    and is integrated with organic raw sugar
the right product with the right message     cane and spa water. Those are the only
for today’s market.                          ingredients. There are no artificial

22 BIN 2020
SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate SPA GIRL COCKTAILS The Founder, The CEO and The Rainmaker - How Three Women Are Shaking Up The Liquor Business - Please The Palate
You can also read