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