How does an ready-to-drink (RTD) brand that was built on the beach translate to other seasons? Surfside, Stateside Vodka’s hard iced tea and lemonade canned cocktail brand, is betting big on sports this fall.
Stateside co-founders CEO Clem Pappas and president Matt Quigley joined the Brewbound Podcast to discuss the brand’s meteoric rise, its partnerships across college football and professional hockey and baseball and the newly rechristened Stateside Live!, an entertainment hub at the South Philadelphia Sports Complex where the city’s professional sports teams play.
Year-to-date through mid-September, Surfside’s depletions (sales to retailers) reached nearly 8 million cases, about a 150% increase over last year.
“We budgeted to be up about 100% on the Surfside brand, and so we’re doing a little bit better than that,” Pappas said. “As we’ve gone through the year and started to lap some bigger and bigger comps, the percentages have slowed down, but the case and the dollar gains have continued to increase, so I think overall, we’ve exceeded expectations.”
Surfside rolled out in 2022 and made a bigger splash in 2023 in the brand’s hometown of Philadelphia and at the nearby Jersey Shore. With 100 calories, no carbonation and real iced tea or lemonade blended with premium vodka, Surfside stood out in a sea of hard seltzers.
Strong sales trends and positive feedback in the brand’s early days gave the team the confidence it needed to ignore standard bev-alc practices of “go slow on your expansion” and “one territory at a time,” Pappas said.
”We really felt like we had a tiger by the tail, and we foresaw that this could be one of the next big things,” he continued.
Inspiration struck during rejected sales pitches for Stateside’s vodka soda RTD, which is “extremely popular in our home market,” but failed to gain traction beyond Philadelphia because there was so much competition, Pappas said. Surfside was unlike anything other brands were introducing.
“We felt like, ‘Hey, we got something, and opportunity is not a lengthy visitor, and so let’s go out and push this,’” he said. “It’s been an ambitious strategy, and it’s been difficult at times, and it hasn’t been without its stumbles, but ultimately, I think we made the right decision.
“We’re in a position where everybody’s pouring into this category, it’s the hot category,” Pappas continued. “We’re in that gold rush phase of the life cycle of this category, and I’m glad we went as fast as we did, because we’d probably be boxed out of a lot of places at this point if we hadn’t.”
Prior to the interview, Zoe and Jess break down recent news stories, including the abrupt shutdown of brewpub chain Iron Hill and storied cider maker Martinelli’s pivot to bev-alc.
Listen here or on your preferred podcasting platform.