Married duo Camillia and Dave Bailey fell in love with tepache, a beverage made from fermented pineapple, while traveling in Mexico City in 2018. Fast forward to 2022, and the pair launched Crooked Owl Hard Tepache, a 5% ABV version of the beloved beverage that is “naturally probiotic,” shelf stable, gluten free and 100 calories per can.
Available in three flavors – Original Piña, Jalapiña and Pasión – Crooked Owl has expanded from being available solely direct-to-consumer, to now distributed in California, New York and Georgia. Crooked Owl was also a finalist in the 2023 Brewbound Live Pitch Slam (replay available here, with Crooked Owl’s pitch starting at the 13-minute mark).
The latest Insider-exclusive A Round With features a Q&A with Camillia to get an update on the company since the Pitch Slam in December, and what it’s like working in a segment that is still finding its place in bev-alc.
Here are highlights from the Q&A:
In a world of endless choice, what white space does hard tepache fill for consumers?
Camillia: Call us cynics, but we always try to remind ourselves that the consumer owes us nothing. In order to earn their share of mind and share of wallet, we have to offer a product that delivers true value. Not only have we created a category that is just beginning to see growth, but we offer a beverage that is vibrant and truly one of a kind.
When you consider new category entrants, you’ll notice single SKUs with higher ABVs that are heavier on the palate. We deliver an elevated sipping experience at an approachable price point in a format that is easy to share and serve. We are reimagining what the sessionable moment looks like and are showing consumers that they deserve more than the usual suspects.
You’ve noted in the past that tepache has “deep cultural roots” and the importance of making sure the liquid still tastes “true to tradition.” How do you balance doing that while still creating your own unique product?
Camillia: When we first started making tepache back in 2018, we had no plans of building a beverage brand let alone creating our own category within the bev-alc space. As we started elevating the ABV of our traditional recipe, we tried really hard to achieve the same flavor profile and delicate balance of the tepache we were already fermenting – it’s really easy to make hard tepache taste like fruit wine, it’s not so easy to make Hard Tepache taste like tepache.
We spent loads of time thinking about the right mix of flavors to launch to embody the beverage’s regionality and uniqueness while also offering flavors that are sessionable and enjoyable for every palate preference.
Have you had any recent wins that surprised you?
Camillia: Absolutely! We’ve been working on scaling our chain presence for a while and we just launched into all Whole Foods stores in Georgia and are slowly rolling out in SoCal and New York.
Also, we recently participated in a wonderful charity event benefiting the Jeff Michner Foundation at Pig Beach in Queens where we had the opportunity to connect with Samantha Reiner who leads the beverage program at Tacocina, a Union Square Hospitality Group restaurant at Domino Park in Brooklyn. She loved our hard tepache so much that she brought in all 3 SKUs in place of offering a hard seltzer, which is exactly what we’re trying to do – elevate the sessionable moment.
What goes into your decision making when choosing a new market?
Camillia: The first consideration that we make is the low-hanging fruit one – is there a baseline understanding of what tepache is and is there a non-alc player seeing growth there?
The second consideration is whether or not there’s an appetite for newness and discovery in the food-and-beverage space. We do some diligence on what the hospitality scene looks like and what is trending in the market – is there an interest in fermentation? Are bartenders making their own tepache to utilize in cocktails? And finally, we consider things like weather, interest in outdoor activities and health consciousness.
Where do you see Crooked Owl expanding from here?
Camillia: We want the world of Crooked Owl to feel immersive and discoverable, and as the category of hard tepache continues to grow, we want consumers to think of us beyond that. We’re working on new flavors, new experiences, and new markets (Arizona, Colorado, NorCal, Texas … we’re looking at you!) that we can grow with.
You participated in the most recent Brewbound Live Pitch Slam. What was one comment or piece of advice that you took away from that judging?
Camillia: The Brewbound Live Pitch Slam was truly one of the most rewarding experiences that I’ve had to date as a founder. The biggest takeaway that I walked away with, which was a really hard pill to swallow, is that our hard tepache is not going to be for everyone right now. And while we hope that changes in the near future, we have to be comfortable with and confident in the fact that we have a beverage that’s unique. Creating a category is hard work, but it’s what makes it worth it.
What is the biggest challenge your business is facing right now?
Camillia: Being a team of two is really tough, but it allows us to be nimble and move quickly. We are constantly trying to improve our liquid and find new ways to push the envelope of what the beyond beer category can look like. There are larger category players coming onto the scene that will make it more challenging for us from a financial perspective, but I’ve said it before and I’ll say it again now – we might have been the first to market, but we won’t be the last, and all we want to do is be considered the best liquid available to the consumer.
On the flipside, what’s the biggest opportunity you see for Crooked Owl this year?
Camillia: Honestly, it’s the flip side of the same coin. We’re excited to see this category grow and the investment that these big players will make can only help. Rising tides lift all boats, or so I’ve heard. We have some really cool R&D in the pipeline and we’re excited to be able to share more about that work when the time is right. We may be small, but we are mighty!