Brewbound Rising Star 2024: Carbliss

Speaker 1 [00:05] Our next rising star is Carbless, the 100 calorie, no carb, no sugar, Midwestern canned cocktail brand. Joining me now is co-founder and president, Adam Cranner. Welcome and congratulations, Adam.

Speaker 2 [00:20] Hey, thanks so much for having me, Justin.

Speaker 1 [00:22] Adam, you and your wife, Amanda, developed the idea for Carbli in 2018. You're now closing in on being a 3 million case brand this year if you haven't already crossed that milestone. What is driving the growth for Carbliss?

Speaker 2 [00:39] Uh, yeah, I think we're, we're closer to 5, but the, the growth is more, um, just we're, we go backyard to backyard, we integrate into the community. Uh, the product is different than anything on the market, and, uh, we have the best team and the best distribution network bringing it to the consumer.

Speaker 1 [00:59] What about the brand do you believe is resonating with consumers?

Speaker 2 [01:03] When you look at what's currently on the market, you have the seltzer-esque products that people are generally drinking because of the nutrition panel. Um, so low carb, low sugar, low calorie. All of those products that are out there are generally highly carbonated and not very flavorful. Um, and then on the other end of the spectrum of ready to drink cocktails, you've got, you know, margarita in a can, vodka lemonade in a can, vodka cranberry in a can, and those taste great, and they're full flavor, but they're 250, 300 calories, 25 30 g of carbs and sugar. And really what Carbless did is we combined those two concepts. So, you've got a handcrafted bar-made cocktail, um, like a vodka cranberry, vodka, lemonade, margarita in a can, that's super flavorful, and it has the benefits of the nutrition panel being all zero carbs, zero sugar, 100 calorie, and very lightly carbonated.

Speaker 1 [01:51] You're on the verge of 3 million cases this year. Yeah. So, what are your expectations for the brand in 2025?

Speaker 2 [02:00] We're gonna keep on, keep on the current foot or I shouldn't say foot. Process, um, which is going backyard to backyard. As we build and scale the team, we're able to do that bigger, faster, stronger. Um, currently, in the markets that we've been distributing for more than 1 year, we're the #1 RTD. We're generally the #1 or 2, spirit brand overall. Um, and so, we're gonna keep doing that in more markets and, uh, keep making our way across America.

Speaker 1 [02:28] You've taken a very deliberate approach to distribution. I know that you're going deep in the markets that you're in. I believe you just opened Chicago. How are you balancing the requests for the brand with your own strategy of brand building?

Speaker 2 [02:44] The beautiful part about it is. It's, it's a hard no. Uh, we've got probably about 200 distributors who are like begging for us to turn it on tomorrow. Um, but when we explain them to our, when we explain to them our approach, and when we show them the success that we can become the number one RTD in a very short period of time, they appreciate it. And although they're excited to bring in the brand, when they realize that we can replicate this every single place we go, um, it makes it a lot more palatable to be. To be one of those in the queue waiting for it. We did adjust our script a little bit, um, went heavy into marketing, which is typically not something we would do, but based on how we surrounded the city for so long, it, it made sense to try something a little bit different, but um, The, the movements have happened rather quickly. Um, case sales jumping up, I think, with only a week and a half worth of data. The last time I looked, we were already the number 5 RTD in the city, um, and that was on a 4-week trend. We were 3 or 4, but with only a week's worth of sales data. So, uh, just tremendous potential there. We're excited to be in Chicago. It's our first Mega Metro, and, and that's gonna allow us to prove to future distribution partners that we, we can, uh, continue to take this blueprint anywhere in the nation.

Speaker 1 [04:09] You mentioned taking a different tack to marketing in that market. What are you doing different in Chicago and how do you typically roll out in a market like that?

Speaker 2 [04:19] Well, some of those things are a little, a little more close to the cuff, so I'm not gonna go very, uh, very in-depth, but ultimately, our product is different than anything else on the market. And the way I described it earlier, you have the first two I described in every market that you go to. Carbliss's product is very different, and so it, it is very important to us to get liquid to lips and get people understanding what the product is. So, when we talk about marketing, If you look at us on social media or on a billboard, we're another tall white skinny cam, and if you've tried 20 of them, number 21 isn't going to change your mind on anything. And so we know the product is different, but the consumer is also fatigued with all these new things that are the same thing as what they were having before. So, what we normally do is we do not market until we sell. So we sell, sell, sell boots on the ground. Um, get liquid to lips, continue to activate and grow, and then we start investing in marketing, and it's not making you aware Carbliss is there, it's reminding you because you've already had it and you know how, uh, how much better it is. Now, because we surrounded Chicago for about 1.5, 2 years, we knew we had a lot of pent up demand. So, it was a little bit different where we said, hey, we're here, invested very heavily in multiple marketing channels, billboards, trains, uh, had little LED trucks driving around, had a cardless mascot running around doing Chicago things. And um that is because of us surrounding it. Uh, I'll kind of associate it to to the Barbie movie. When Mattel launched that, everybody knew what Barbie was. So they just had to let you know that they're coming out with a movie and give you enough to get excited about it. Well, if I show everybody this can and say, hey, the new best RTD is coming to the market, you're like, yeah, heard that story 25 times already. There's nothing new. The way I convince you is getting you to try the product, and then, as soon as that happens, you know that it is drastically different, and we've usually got a buyer for life.

Speaker 1 [06:21] When you look at your channel strategy, are you more focused on grocery, convenience, or the on-premise? And what, what is the on-premise play if there is one?

Speaker 2 [06:33] Uh, on-premise is, is definitely a focus for us. Um, I mean, ultimately, we, we try to use our product to help, help make our, our partners more money because RTDs are a sore point for, for on-premise, uh, because they'd rather make more margin in a, in a mixed cocktail. But let's be frank, if, if I ask you at the bar to make me a car carbohydrate-free, sugar-free vodka cranberry, you can't do that. So we're able to play on the strengths of the on-premise with their, you know, cocktail expertise and give that consumer a full flavor option. And even we we sell in pretty much every, every channel, which, which makes it very helpful for the brand to be able to move quickly.

Speaker 1 [07:17] As you look forward with this brand and the opportunity that you see, what are the biggest opportunities in the next 3 to 5 years?

Speaker 2 [07:26] Really, um, our, our, I'm, I'm gonna go to challenge that opportunity. Our, our biggest challenge as we've grown has never been getting sales or finding team members. We're very blessed to have, um, awesome people who are always selling. Um, our biggest challenge has been cash. And so now that we've proven this methodology in literally every market type, urban, suburban, metro, mega metro, rural, um, we've proven it in every one. So now we've, we've been able to slowly build up where we have, uh, the financial capacity to be able to scale faster. And so we're doing a little test 25, and as long as that works well, we'll probably be able to move quicker 26, 27.

Speaker 1 [08:08] As you're building that cash reserve, are you also looking for investors to bring into the brand? No,

Speaker 2 [08:14] my wife and I own a very large majority of the, the company and the the lack of wanting to raise money, um, was one of the reasons we started to grow methodically and then realized how successful it was. That's been kind of the, the, um, I'll call it. Mental constraint is now seeing this process work over and over and over is not ruining it and then trying to run too fast. Um, but ultimately we want the brand to be around for 30 years and not 3, so it, it, you know, we try to think about it through that lens. But, um, I don't like being told what to do. It's part of the reason why I own my own business. So, um, you know, if somebody gives me tens of millions of dollars, they're going to want to tell me what to do, and I know I'm not going to want to listen, so we're, we're going to keep it to ourselves.

Speaker 1 [08:56] Are the strategics beating down your door already then?

Speaker 2 [08:59] It's probably been about 2 years of a lot of, um, I mean, when you look at the, the weighted distribution, we're, we're a top 5 brand in dollars and we're sold to 15% of the United States population, um, yeah, yeah, there's, there's definitely interest.

Speaker 1 [09:14] It sounds as though you're pretty happy to build this thing on your own then, and ride the wave as long as you can to build that 30-year company.

Speaker 2 [09:24] The, the beautiful part about what we've done is when I, I look at a lot of what our competition does is they go national very fast, and then there's no lever lever to pull, right? So, you keep watching the data and how we're getting these 100, 200, 300% growth turns. We still have 85% of the nation to sell to. And when you have one great year and you're in all the industry regs for 6 to 8 months, and then next year, what are you doing to grow? It's got to be all, you know, current geographic growth. Um, and so, the beautiful part, uh, Justin, is we have built a very solid, profitable business, um, that can stand on its own. In the 13 states we're in now, if we stopped growing, it would be a business that many people would be salivating to have, um, so we can do whatever we need and want to when the time is right.

Speaker 1 [10:18] You're in 13 states now. Are you looking to add to that map in 2025?

Speaker 2 [10:23] Yes, we'll be adding some, not sharing those quite yet.

Speaker 1 [10:25] As far as looking ahead to 2025, then what about the brand are you most excited about? Whether that's a new market, new product, existing product, what's exciting you about 2025?

Speaker 2 [10:38] I mean, this is gonna be probably a not super fun answer, but. I'm very confident that 25 is not going to be any different than 24, 23, 22, or 21, and that's what excites me. Um. It's, it's, I, I spent a lot of time in the market, but it's selfish. Like this liquid is something I created 56 years ago, and seeing the reaction on people's faces. When they get to try it and they go, oh my God, like I, I thought this should have existed. I, I didn't believe it ever would exist. Um, that's fulfilling. And so, going into 25, I'm going to do that in more states, more people, uh, and that's, that's what continually fills my cup, and we get to add more people to the team. We've never had anybody quit, which hopefully tells you a little bit about the culture when we're growing this fast, um, and getting more people on our team who love their jobs and love waking up and doing what they're doing. That's, that's what excites me the most.

Speaker 1 [11:33] Awesome. Well, good luck in 2025 and congratulations, Adam.

Speaker 2 [11:38] Awesome. Thank you, Justin.