Brewbound 2023 Rising Stars: Stateside Vodka

Speaker 1 [00:12] We are here with another one of our rising stars and someone who is making a big impact in the spirits-based RTD space. We are talking to Clement Pappas from Stateside Vodka, all about Surfside. Welcome, Clement.

Speaker 2 [00:26] Thanks, Zoe. Great to be here.

Speaker 1 [00:28] Uh, really excited to talk about stateside and particularly what you're doing with Surfside, which is your, uh, vodka-based hard tea and lemonade brand. Um, we have talked about it on the podcast before about how Jess was seeing it everywhere in New Jersey this summer, and it's been kind of taking off, uh, this year in the RTD space. Um. What I think the best way for us to start off is when you guys launched Surfside, what were your expectations for and how did the reality compare to those expectations?

Speaker 2 [01:04] Yeah, so definitely, um, you know, we, we thought it was a good idea. That's why we did it. But, um, definitely took off a lot faster, I think, than we expected. And we actually launched the original flavor, um, last summer in 2022. And We just, um, couldn't keep up with production. So, um, it was just one of those things where every month we put in orders for double last month and it wasn't enough and we kinda never found out where it was. So, um, this year, we, we thought we were well ahead of it and we, we did a better job, but, um, you know, still, still went, you know, way faster than what we expected.

Speaker 1 [01:40] Why do you think it resonated so much with consumers? Cause this is a pretty, it's starting to get, to be a pretty crowded market. So what made Surfside stand out?

Speaker 2 [01:49] Yeah, and I think, you know, we, we can talk through, there's obviously hundreds of brands out there, but I, I do think we have a pretty unique offering, um, in terms of tea and lemonade, and I think that's a, you know, classic, classic beverage category, but one where there really hasn't been a major brand with a, with a vodka base. And I think it's a product that, you know, is, is a natural for a vodka base. And so I think we were able to execute. Against that. And then I have to give a shout out to my partner Matt Quigley. So Matt is really the creative brains in our operation, and he did all the graphic design, um, came up with the branding, and I think, you know, the branding just really fits well with, with the product and has really, you know, that, that sort of retro surfer, um, vibe has really resonated with a lot of consumers.

Speaker 1 [02:37] So stateside, you guys are pretty well known as a spirits brand within kind of the Philadelphia area, but now is when you're getting more national attention with this RTD. We've seen kind of a trend with particularly spirits-based RTDs where it's the more like nationally known. Or spirits brands like uh Jack Daniel's, for instance, that are getting the most traction. You guys are somehow still making strides in that space, being smaller than one of those brands. What, how are you competing against some of that more large existing brand recognition?

Speaker 2 [03:13] Yeah, no, it's, it's really interesting, and I think the industry is still evolving, so we, we don't know, um, we probably won't know for a few years how things really shake out. But I, I do think those line extensions from a national brand, whether it's, um, a classic spirits brand or a non-alk brand, we're seeing a lot of non-alk brands now play in the AC space. Um, I think it's a double-edged sword. I mean, I think you get instant awareness and recognition and in some cases distribution. But at the same point, I think where we've seen the biggest hits in the category come in, whether it's a White Claw or a High Noon or, you know, you could go way back to a to a Twisted Tea, um, those are all brands that were new to the space and meant something specific and different to the consumer. So, again, I mean, I think it's a double-edged sword. It's harder to build a new brand, but in some ways there's advantages to being something totally fresh and different.

Speaker 1 [04:09] So how many states can you get a Surfside RTD in right now?

Speaker 2 [04:14] Um, about 16. So we, we started the year at 8, and, um, yeah, we're, we're going pretty quickly.

Speaker 1 [04:21] Yeah, that's really fast. Do you see yourselves becoming available nationwide?

Speaker 2 [04:26] Yeah, that, that's our goal, um, and, you know, we just see a real opportunity, particularly in this RTD space that, um, we, we think there's a window of time that we can build into national brand.

Speaker 1 [04:38] How, I mean, that's a really big growth trajectory. I mean, like, basically more than doubling now with the amount of states that you're in, so. What, how have you been able to keep up with demand? Are there any strategies that you've had to put in place to make sure you can get customers what they're looking for?

Speaker 2 [04:56] Well, I'm, I'm working a lot more hours. Um, but, um, yeah, I mean, that aside, we're, we're building out a team. I think that's, you know, number one is, is having the right people that, um, really can execute and, and, you know, do what we need to do to build the brand. Um, as far as, you know, forecasting specifically, that's probably one of the biggest challenges we face. And, um, in general, what we keep learning is that we're better off forecasting higher and we will sell through the product, um, but it's hard to make it in July or August when the demand is there and if you don't have the, the product on hand. So, uh, we're definitely, whatever we think is too much, then we kind of double that and that's kind of our, our production forecast at this point.

Speaker 1 [05:42] So you guys named a Brewbound Live rising star, but you also got another, another award this year. You were named one of the, the 2023 Entrepreneur of the Year for Greater Philadelphia. Um, and just for anyone who's unfamiliar, that award is judged by someone's entrepre entrepreneurial spirit, purpose, growth, and impact. So based on that, I mean, you've obviously have some really impactful things going on with your strategy to win that award, but how would you define that spirit and purpose?

Speaker 2 [06:14] Yeah, I just, um, I love building things and, you know, whether it's a brand or um a company, it's just, it's, it's really great, um, to be able to build something and put it together and, you know, we're having an absolute blast and, you know, um, the people that work here and the culture we have, we all just have a blast at work. Um, we love going out and seeing other people drink our product. Um, it's just, it's just exciting and it's a lot of fun to be able to build something and put it out in the world and, and enjoy it. So, um, that's kind of what gets me out of bed in the morning and, um, you know, as long as we're having fun, we're gonna keep doing it.

Speaker 1 [06:53] So what can we expect from Stateside or Surfside in 2024?

Speaker 2 [06:59] Yeah, I think, you know, we're gonna continue to expand geographically, um, and we're gonna increase, you know, our marketing and visibility. So I think you'll continue to see us more, um, you know, whether it's billboards, whether it's, um, you know, uh, sports sponsorships, etc. um, we're, we're gonna be out there more in the public eye and hopefully in, in more parts of the country.

Speaker 1 [07:22] I'm not gonna name any names, but we have seen that there are uh some competitors who seem to be dipping their toes into some pretty familiar territory with Surfside. How are you guys planning to keep up with that presumably increased competition?

Speaker 2 [07:39] Yeah, so we're, um, we're flattered. Um, we, we, we'd like to be kind of remain the only ones in this kind of narrow space of, of kind of vodka-based tea and lemonade. Um, but I think once we saw the traction we were getting, we, we knew that, um, others would enter the category, and I'm, I'm sure many more will come. So, you know, um, we're, we're out in front of it. We're trying to maintain our head start and, you know, keep moving as fast as we can. Um, but, you know, the, the biggest thing is just to execute and not, not fumble what we have. We have a great brand. We have great liquid, um, we've got momentum in the trade with our distribution partners and with retailers. So I think as long as we keep doing what we're doing, um, we're, we're gonna do well with the brand we have and, you know, we, we live in a free market economy. There's gonna be competition and, you know, um, bring it on, we'll, we'll, um, you know, we're, we're ready to go.

Speaker 1 [08:31] We're excited to see what comes from you guys next and your continued growth. My final question for you is something that I'm asking all the people that I'm talking to for this award, which is, what is something that you have learned as someone who's a decision-maker in this business that you think is important for fellow industry leaders and people within Bell Elk to know right now?

Speaker 2 [08:53] Yeah, I mean, I could go so many different directions, but I think almost no matter what, um, it, it comes back to having the right people. And, you know, we, we say there's a, there's, it's a little bit of an old adage, but we say, you know, hire slow, fire fast. Um, we, we try to really, you know, do our diligence and make sure we get, you know, the best 8 players that we can on board and, you know, just, you can't do it without, um, without the team and without the people that fit the culture. Uh, that you have, so that's absolutely number one for us.

Speaker 1 [09:26] Well, congrats again, Clement on being a Brewbound rising star.