Brewbound 2025 Beyond Beer Company of the Year: Carbliss

Speaker 1 [00:00] Let's meet Brewbound's 2025 Beyond Beer Company of the Year. It's Carblis, the vodka cocktail brand from Wisconsin. Joining me now are founders Adam and Amanda Cranner. Congratulations. Thanks,

Speaker 2 [00:14] Justin.

Speaker 1 [00:15] Adam, this is becoming an annual thing for us. Last year we celebrated Carbliss as one of our rising stars, and this year you're the Beyond Beer Company of the Year, very, very much earned. So congratulations.

Speaker 2 [00:30] Thank you so much. We appreciate it.

Speaker 1 [00:33] So you've really established a foothold in the Midwest, but you also recently opened up the Florida market, which is huge. You're moving into those warmer climates. How many states are you in now?

Speaker 2 [00:47] Uh, well, I would, I would reframe the Midwest to probably more central US when you, when you look at the, the states that we're in, um, and then Florida made 19. Wow.

Speaker 1 [00:59] You're almost halfway there.

Speaker 2 [01:01] Yes, we are almost halfway there, slowly but surely.

Speaker 1 [01:05] And I remember the last time we talked and you have a very I don't know if methodical is the right way to describe it, but you're very focused when you go into a market and you go very deep into that market. So when you're rolling out a place like Florida, which is a major market to move into. Does that strategy change at all or how do you sort of roll out a state that that's, that is that big?

Speaker 2 [01:33] So when we launch any market, uh, our general playbook is the same, um. When we talk about, um, so Florida being big, the playbook is going to be the same. Ultimately, some of the adjustments that we make are more based on independent or chain driven markets and and how that particular market activates, um. We've been, you know, part of, you use the word methodical, quite frankly, that's how we use, that's the word we use. So I think it's a perfect use of the word, um, but we are always adjusting. And so when we think about brand saturation and maturation, we just want to slowly adjust each time that we're launching a distributor, uh, so that the next one gets the best version of us and a better version of us than before. Um. So Florida, we did not launch like the Orlando proper area. We did not launch like the Miami proper area and in the first, I think we just saw our 1st 4 week scan and we're already top 10 in scans. So I mean what that tells us is, you know, we're, although we're slowly evolving, the process works and will be pretty impactful here in the next 6 to 12 months.

Speaker 3 [02:46] And we haven't even really launched any chains, so that's all independent.

Speaker 1 [02:53] So, do you see that rollout in Florida expanding throughout 2026? Is that the plan or is that already taking hold?

Speaker 2 [03:03] Yeah, so for the rest of the state, uh, right now we're not making any concrete plans. Uh, Ultimately, similar to our playbook in the past, the metros, um, we, we try to go places where we can, we can own our own destiny. The metros by way of, of Those markets are a little more challenging, so we'd rather have a built up demand just like the state of Florida. We had a built up demand there. So not locked in for 2026, not saying we're going to do it, not saying we're not going to. We're, we like to listen to the brand and if it tells us to do something, we'll do it. Outside

Speaker 1 [03:34] of Florida, are there any other markets that you're eyeing for 2026 as new additions?

Speaker 3 [03:41] For the remainder of this year, we still have one to go, so state number 20 is going to be Arizona. And then as for 26, uh, we like to be very nimble and um not necessarily set our eyes on anything because we never know how long the license process is going to take. So, uh, we don't want to have a set planning like set in stone and then uh something out of our control changes that, um, but as a hint, we'll probably head towards the East Coast.

Speaker 1 [04:14] Right on. Well, I think there are going to be a lot of excited people on the East Coast when they hear this. So at the NBWA's annual convention in Las Vegas, it, it's amazing to see how the brand has evolved over the last couple of years because you had a very much smaller presence two years ago when we were all in Vegas and then this and even in San Diego the year before, it was a nice booth, but this year you all went big and I'm curious, how have those conversations with wholesalers changed in that time period for you all?

Speaker 2 [04:53] Well, I do want to share part of the presence change, you know, if it was up to me, I'd still probably just have a little 10 by 10 booth, and as you saw, we had a, I think, 20 by 20 spot. 90% of the time it's full, and, and it's, it's almost impossible to have, you know, people are almost turning away. So part of the growth has been to support the conversations and the people that want to be a part of it. So we're very, very thankful for that. Uh, but I think the evolution really comes down like 2021. Um, it was me, Amanda, our EVP Mike, our market manager Amelia. That's our whole team. That was our whole team at the time. And that was our first one and we're literally like, you know, please come, come talk to us, you know, Mike, Mike had awesome. Experience in Bev Elk, and he had, you know, asked people to come by the booth. So to just have this slow progression of most people, if not all in the industry know who we are, and coming to talk about, talk to us out of curiosity, getting the validation from the liquid, um, and then just getting the contacts. It's, it's more, it It is very cool to see, but the progression has been went from begging somebody to just hear us out to uh having to have a 20 by 20 booth of, you know, people just pouring into it. Uh, that's probably the best way to describe that.

Speaker 3 [06:13] I would add that on top of a lot of distributor conversations, we had individuals that were in the same place we were back in 2021 coming up and asking for tips and advice and some mentorship and Uh, just kind of looking up to us and that was a really cool reflection, um, just on that progress and And how we can give back to others that are where we were not long ago.

Speaker 1 [06:45] Well, speaking of evolutions, I'm, I'm curious to hear how your channel strategy has evolved as the business has grown.

Speaker 2 [06:55] Yeah, so, um, I think we may have talked about this the last time, um, from a channel strategy. It's Probably less brand, more distributor, and so, you know, we believe if we can give the distributor uh tools to to grow their business, it's going to be our, our best way to get execution, um, and obviously it has to work for the brand. So, if you look at our, our spirits brand, um, one thing that you'll see is that even though we don't have a C store, um, So in 25 they changed and allowed, you know, spirits to be in 192s and 16 ounces. We didn't go that route. Our route was actually to go into the malt, and if I remember, you're you're from the great state of Iowa, so we're testing our malt 192s in Iowa, and that is in the CS store. So for us that is going to expand in 2025. This is 25, we're going to expand those in 206. We're not concrete on all those states, but ultimately, like when we think about that piece, we're we're trying to gain the presence in as many places as possible and not, not limit the brand in some of the states that, that don't allow spirits to sell everywhere.

Speaker 1 [08:16] It's funny, you, you've got a great memory because I am in Iowa and I was in HV over the weekend and I was just Sometimes I head over to the liquor aisle and, uh, or their little uh liquor store portion of the store and I was checking out the singles and there were several carbless cans in the single serve cold box and it, it's very cool to see and it's also, you've done a great job with the cans too because they're very distinct.

Speaker 2 [08:47] There's been brands before us that went spirits into malt. And, and the consumer felt like they were lied to. So a lot of the intentionality behind that was to focus on who we think that consumer is going to be generally in the single serve convenience store market, as well as trying to make it very clear that it was a different product. So if you look on the side, it's malt, so it's not gluten free because it can't be. It could be gluten removed, and then The, you know, we call out the malt beverage and so we're trying to be very transparent in that it is a different product so that uh the consumers who want that type of beverage at that price point, great, but we're not alienating anybody who thinks it's, it's the spirit base.

Speaker 1 [09:31] I don't blame you. Uh, we've covered enough of those cases to, to know that that's a smart move. So, as far as the on-premise goes, how have you made headways into bars and restaurants?

Speaker 2 [09:46] So, uh, just because we're talking about the 192s, I'll, I'll share that the 192s are not a play at all in the on-premise. It is, is strictly meant to be a convenience store package, um, but I'll I'll let Amanda expand on it a little bit more. To put it succinctly, the on-premise strategy has not changed. The only thing we really see is our total volume change based on some of the larger chains that we brought in just from a volume perspective.

Speaker 3 [10:15] It's always been our number one priority, um, especially in a new market, and that will continue to be the case, putting a lot of support into those accounts so uh we can get liquid ellipse for first-time consumers.

Speaker 2 [10:33] We actually we've we've added our Focus on it by uh in some of our markets, we've added specific people that that's all they do, all 12 months. Um, and that was probably a recent ad within the last year and a half.

Speaker 1 [10:46] There's something that I've seen you preach on LinkedIn and I, I can't remember it off the top of my head, but it's in the comment section and it's dollars per Do you know what I'm talking about?

Speaker 2 [10:59] Yeah, Dollar per sales point. So, um, the, the biggest thing is entrepreneurs when you first start out and you get like an order from a distributor, we, we think that's a win, um, but I think we all know or we've experienced it. If it sits on the shelf and doesn't move, it's not a win. Like everybody kind of loses. Um, so the dollar per sales point is our VP strategic account says, is, are we paying the rent, right? So if we're not paying our rent on the shelf, the The retailer is not going to want to keep us there and so it's, it's really the dollars that are velocity. And so when you look at, so I'll use Florida as an example, we're number 10 in dollars. But our distribution is relatively low because it's new, but our dollars per sales point already puts us at number 6, so that means like. Nationally, we're #4 in Circana. I think we're number 2 or 3 in dollar per sales point. So it's just saying somebody might be bigger than us because they're in a lot of places. I think high noon definitely and then maybe Cutwater beat us in $1 per sales point, which generally correlates to the more market share we grow, we become the leader very quick.

Speaker 1 [12:08] That's an awesome metric to be doing that well in, so that's got to be a fantastic selling point to both. your wholesalers and your retailers.

Speaker 2 [12:19] Transparently, it's my favorite one because it's, to me, that's the consumer metric. It doesn't mean that I had a big load in to a retailer and then, you know, a bunch of people bought it once. It means that a bunch of people keep buying it over and over and again. Uh, so, it is the metric telling us that the distributor is making more money, the retailer is making more money and everybody is winning.

Speaker 1 [12:40] Yeah, you're laying down aces. Trying. Well, uh, I want to get into how you're performing this year and I, I mentioned the, the, the scan data trends that I see, but how are you pacing as far as volume or cases this year?

Speaker 2 [12:59] Well, I think we're going to land. Probably. This time of the year generally gets a little strange for us. We never try to, to force any, you know, end of the year load-ins. We don't want to, um, wad up distributor inventory just to hit a goal. We've

Speaker 3 [13:16] also never had. A location that was warm right now, uh, so that shifts our numbers a little bit, um, and it's a new state, so there's some things to be unexpected, but yeah,

Speaker 2 [13:30] we're. We know we'll land north of 4 million cases, just not, not quite sure where.

Speaker 1 [13:36] Wow, congratulations. That is a fantastic year.

Speaker 2 [13:40] Yeah, no, we're, we're, we're very happy and just going to continue on that next year.

Speaker 1 [13:45] Well, and it's going to be nice to have state number 20 coming on a little later this year too.

Speaker 2 [13:51] Yeah, exactly. To Amanda's point, um. You know, some more well rounded out weather. Uh, it, it was really cool for Florida to see the whole team excited to go. I mean, they're always excited to go launch a market, but I love the whole, you know, distribution network in North Dakota, but I'm telling you, launching, um, launching Florida in October is like eons better than, uh, you know, Southern Canada basically in, uh, in December because that was really cold when we did that.

Speaker 1 [14:21] I, I think we can all understand

Speaker 3 [14:23] that. I was just speaking earlier, like two hours ago, and I reflected on the case volume year over year and in 2020, it's like 2000 cases and it felt so good at the time and it's really fun to look back on 2019.

Speaker 1 [14:41] Yeah, and it's just exponential growth and we get to see it in the numbers, but It's, it's great to see. So when you look back on 2025 and, and you reflect, what are you gonna count as the biggest win of this year for

Speaker 2 [14:58] the brand, um. I, I think personally the, the, the work of the team and the evolution that we've had over the last 4 years, this Florida launch, um, seeing that data, I think that was just a couple of days ago. We, we've been slowly working and trying to perfect and we'll we'll never consider it perfect. We're going to keep trying to make it better for, for us and the distributors and the retailers. To be uh within top 10 scans, uh, within the 4-week data set means like the adoption was very immediate. People picked it up. Um. So, I, I just, I think, I think that's almost the culmination of all the work, the prep, um, to, to be able to see that so quickly, generally doesn't happen that fast to be top 10, um, and it's, it's just going to climb from there and knowing that we're, we're only in part of the market is just in, in, I think an incredible story and testament to the patience and methodical nature of what we do.

Speaker 3 [15:58] And I would add the team has grown quite substantially this year. And uh our culture is top priority, but we have been able to continue to attract so many amazing people to keep that culture strong no matter what state it is that we are going into. So for our HR team and the leadership team that's out there interviewing. And selecting these individuals. They're doing an amazing job and our team continues to grow and it's really fun every time we get back together as a whole group to truly see the size of everybody together.

Speaker 1 [16:39] Well, Amanda, you mentioned that just a few years ago you, you were only 4 people. So how many people are on the team now?

Speaker 3 [16:46] We have about 80 full-time staff and Every week we do orientation, so it's 1 or 2 more each week and I'm probably late. It could be 85 because I can barely keep up with the number myself.

Speaker 1 [17:00] What do you envision is going to be the biggest unlock for Carbliss in 2026?

Speaker 2 [17:07] I would say, I'll be a little facetious, uh, the way we go to market, we're never really looking for the unlock. Um, we're just fine tuning all the time. Um, and I, and I Probably sound like a broken record, but we're just going to keep rinsing and repeating what we've been doing, you know, when we talk about data. Uh, you know, you referenced scan and us being double-digit growth. It makes my day to be compared to some of these amazing brands. They're, they're national brands. They're selling in 50 states. We're sold to like 30, 35% of the nation's population in 19 states and our, our, our dollars are the same or at parity and our growth is the same, which I think just says a lot that goes back to this dollar per sales point and how much, how efficient we are on shelf, and so the most exciting part. The reason we do it and the most exciting part then becomes just sharing the brand with new people and just having people's eyes light up and like this is, this is what I thought, you know, a cocktail in a can should have been from day one and hooking them on the first time. It's just, it is really cool to continue to see and do.

Speaker 3 [18:15] And I would say just keep finding the most excited distributors, the most exciting, excited people to support the brand, whether it's at the ambassador level or market managers. Um, it's always about the people. So, you just got to keep that excitement high but continue the process.

Speaker 1 [18:34] Well, Amanda, you mentioned some folks coming over to the booth during uh the MBWA annual convention and asking for advice. So, I guess for a company that is sort of where you were back in 2019, what is the best advice that you would give them at this point?

Speaker 3 [18:53] The hardest part is there's different ways to go to market and what is their vision, um. The one I probably like the best is everybody's trying to stack up this statistic of how many states are you in. But truly, before you move to another state, how many accounts are you in, in that current state before you start adding travel and more people and distancing yourself, distancing yourself from your own backyard. Um, so, It's what's the potential around you before you start trying to be able to spiel off however many states you're in, like what truly matters to you. And maybe it's being in 50 states and getting this big hit. Maybe that's what somebody's priority is, but to have a long-term stable business, they have to back that down a little bit.

Speaker 1 [19:49] How long did it take you to sort of figure that out for yourselves?

Speaker 3 [19:54] Uh, well, we had some consultants in the beginning and

Speaker 2 [19:58] be part of, was

Speaker 3 [19:59] it? I'll let you give your advice.

Speaker 2 [20:02] I will share that our vision was to go backyard to backyard at first. And then we had consultants tell us that we were not smart and I mean, we're we're not from Bev Elk, so they're like, they, they never said that, but they're like, no, you don't want to go to Minnesota, Iowa, Illinois, you know, where the people are, go where the people are, go to California, go to Texas, go to Florida, go to New York, and, you know, similar to what Amanda was saying, like, nobody knows who you are, um, and if you don't, if you're, we started out, we were working full-time jobs, we didn't have the ability to travel outside of post 5 or 6 p.m. So, um, The consultants were the ones that convinced us to do that, and they were the ones from the industry, and the advice, my advice, which typically the advice is not to take any advice because nobody, nobody's going to love you like you do, and the challenge with consultants, they can do a really good thing. And, and I don't want to, you know, rain on anybody's parade or business. But when the consultant is still a salesperson for their company, so their job is to collect a PO for a given time period, 30, 60, 90 days. If they sell in a truckload of product and you're hooraying and in 6 months that product has not sold through, And the distributor has 10 pallets left and they're pissed off because it hasn't hasn't moved. The only person's problem it is, is yours as the brand. And so we experienced that probably too many times and that's when we met our now EVP who I think understood the backyard to backyard, but then could put a playbook against it to be able to execute. That, that's really when That was 2021 when when we started that and so it's it's thinking through. It's really easy to get excited about volume when somebody makes promises, but, but really thinking through how does this impact my brand in 234 years if it doesn't work out, because retailers, big box, I'm quoting our VP of strategic accounts again, they don't remember the pallets that sell well. They remember the pallets of stuff that take up shelf space that never move. And so if you get into a big box and it doesn't move, it's a great 6 months. In 2 years, you're still begging for your spot back.

Speaker 3 [22:24] It kind of goes back to that quote, 100 great nos. It's the most important thing you can do. If you're not ready, don't do it because it sounds nice.

Speaker 1 [22:37] Yeah, it's knowing when to move and knowing at what pace to do it.

Speaker 2 [22:44] Well, I'm going to give a quick frame up just and we've we've learned and evolved. I was talking to a company who had a founder in California and one in New York, and they wanted my help with uh distribution. So I said, yep, let's jump on a call, you know, usually we'll do like a 30 minute, got to have an agenda, and after about 10 minutes, I just asked the question, why do you want to go somewhere else. They were only selling in California. And it was to grow, grow the business, right? OK, well, how many accounts are in California? They didn't know, so we googled it. There's 40,000 accounts in California for this type of alcohol base. They were in 500 So if there's 39,500 to go, The harder part is knowing that that growth takes a little bit longer on an account to account base because you're not going to get that huge load in from the distributor. The huge load in from the distributor feels really good, but again, if it sits on a retail shelf and doesn't move. The relationship in 6 months isn't going to look that great. Um, it feels like a really good yes, but 6 months later, it usually isn't if you haven't built the brand accordingly, and that's why we've been so methodical.

Speaker 1 [23:51] Absolutely, and the, the patience just isn't there to, to let it sort of develop either.

Speaker 2 [23:57] Yep,

Speaker 3 [23:58] yeah, that, that's hard for us sometimes too.

Speaker 2 [24:01] There's lots of squirrels that I want to chase. Yes, for sure. That's why I have.

Speaker 1 [24:08] Well, I, I can't thank you enough for all the time. Thank you and congratulations, Adam and Amanda. We're so happy to be able to celebrate Carbless this year.

Speaker 3 [24:18] Thank you for the recognition.

Speaker 2 [24:19] Thank you, Justin. We appreciate the time.