Business of Drinks Business of Drinks

In this episode, we talk about one woman’s quest to bring non-alcoholic adult beverages to the masses. Our guest is Emily Heintz, founder of Sèchey. Sèchey is a retailer focused on alcohol-free and functional drinks — and also low dose THC products – that launched in 2021. Sèchey has a bricks-and-mortar shop in Charleston, South Carolina, an ecommerce platform that ships nationwide, and a curated collection of products within Target stores nationwide. 

Emily has a fascinating story. After the retail veteran launched Sèchey, she found fundraising efforts to be challenging. Sadly, that’s all too familiar a scenario for female founders: According to Pitchbook data, in 2023, women-founded startups received 2% or less of venture capital (VC) funding in the United States and Europe. This number has remained unchanged for over a decade.

But Emily didn’t throw up her hands and quit. Instead, she found an innovative way to build her retail brand nationally by partnering with the mass retailer Target. Sèchey now has a curated collection of its products nationwide, in some 2,000 Target stores. The brands carried there include Surely, Starla, and De Soi wines, non alcoholic cocktails from Ghia, Edna’s, and Mingle, and functional beverages from Kin Euphorics among others, along with Sèchey’s own branded line of dealcoholized wines. If you’re interested in what’s happening in the non-alcoholic beverage space, you won’t want to miss this episode.

We cover a lot of ground. A few of the key takeaways:


How Sèchey landed a curated product collection within Target stores nationwide


What Boisson’s closure means for the emerging non-alcohol product landscape


Understanding the regulatory challenges faced by non-alcoholic brands


How retail pop-ups helped Sèchey build brand awareness


Why product tastings are so crucial for driving bottle sales


The shifting distribution landscape for non-alcoholic and THC beverages


Why Sèchey is modeling itself after Sephora


Customer data — who’s buying non-alcoholic and functional beverages


How Sèchey developed its own in-house brand of dealcoholized wines


What e-commerce looks like in the non-alc beverage space


How to pitch Sèchey if you’re a non-alc or THC brand



Stay tuned for our next episode dropping on May 15. 

About Erica Duecy, host:

Erica Duecy is founder of Business of Drinks, and one of the drinks industry’s most accomplished digital and content strategists. She has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. She also has led digital editorial teams at Architectural Digest and Saveur magazines. Her content, podcast, and video programs have won more than 40 digital and editorial awards. She is a WSET Advanced-certified wine and spirits communicator, and author of the cocktail book Storied Sips (Random House), about the real-life stories behind the world’s most famous cocktails. 

 

To learn more about Erica Duecy:

https://www.instagram.com/ericaduecy/

https://www.linkedin.com/in/erica-duecy-4a35844/

https://twitter.com/ericaduecy

And if you like what you heard, help us spread the word! Follow Business of Drinks, and rate and review our episodes on any platform where you’re listening. It helps us find new listeners.

Thank you

Today we’re talking about digital-first distribution solutions. Erica hops on with Cheryl Durzy, founder and CEO of LibDib, to discuss the on-demand distribution platform.

The name is short for Liberation Distribution, and that should give you a sense of Cheryl’s approach. Cheryl launched LibDib in 2016 out of her own frustration as a supplier navigating the byzantine distribution landscape. LibDib is now a distribution solution for some 1,200 wine, spirits, and non-alcoholic drinks brands in 15 states, and it has a CBD wholesale platform as well, called CBDib. On the main platform, there are about 10,000 buyers, from restaurants and bars to mom-and-pop retailers and chains like Costco, Total Wine, and Whole Foods.

Since 2018, LibDib has partnered with distribution giant RNDC on LibDib’s technology platform. Later, in 2021, the two companies created LibDib@RNDC, a sales division that offers a distribution model for wine and spirits products in RNDC markets. The division works with both established and new brands, and can help them "graduate” to RNDC.

LibDib has made distribution more accessible by allowing any supplier to open an account for free, and to sell any quantity of product from 1 bottle to several pallets at a time to on- and off-premise accounts. 

But LibDib differs from traditional distributors in that it doesn’t have a sales team out pounding the pavement — suppliers manage those relationships. Nor is it keeping inventory on hand — orders are fulfilled upon demand, and then travel through LibDib’s warehouses to respect “at rest” laws where required.

In this conversation, we get into the nitty gritty of how the platform works, and how to sign up and work with LibDib whether you’re a domestic or international brand. We cover the markups you’ll find on the platforms, and the levels of service available, as well as some important information about: 


How to “go live” in a new market


Avoiding pitfalls as a new brand


Understanding state-by-state compliance


How LibDib differs from traditional distributors


Understanding “at rest” requirements


When it’s a good idea to contract a portfolio manager


How to work with LibDib as an international brand


Products that are in high demand (would you believe drink pouches?)



And more! 

Stay tuned for our next episode dropping on May 1. 

About Erica Duecy, host:

Erica Duecy is host of Business of Drinks, and one of the drinks industry’s most accomplished digital and content strategists. She has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. She also has led digital editorial teams at Architectural Digest and Saveur magazines. Her content, podcast, and video programs have won more than 40 digital and editorial awards. She is a WSET Advanced-certified wine and spirits communicator, and author of the cocktail book Storied Sips (Random House), about the real-life stories behind the world’s most famous cocktails. 

 

To learn more about Erica Duecy:

https://www.instagram.com/ericaduecy/

https://www.linkedin.com/in/erica-duecy-4a35844/

https://twitter.com/ericaduecy

And if you like what you heard, help us spread the word! Follow Business of Drinks, and rate and review our episodes on any platform where you’re listening. It helps us find new listeners. Thank you

At the Business of Drinks, we’ve been talking with many founders lately about their struggles finding funding. So if you’re looking for investment — or just want to know more about how VC investors think — this episode is for you! We talk with Mike Warren, founder and managing partner of Alethia Venture Partners. 

It’s a $50 million fund dedicated to investing in alcohol and non-alcohol drinks brands in their Seed, Series A, and Series B rounds, with investments ranging from $250,000 to $5 million.

This episode dives into what Alethia Venture Partners is looking for as it deploys the first of its 5 planned funds. So far, Alethia has invested in brands like Kové, Maker Wine, Gay Water, Pa’lante Rum, and others.

This episode is a key listen for anyone looking for funding. It gives advice not only into Alethia’s investment strategy, but also insights into the mind of a veteran CPG and drinks brand investor. Get the scoop on:

- The biggest mistakes first-time founders make

- Why investing in pre-revenue brands is a gamble

- How VC investors size up a brand

- What makes a brand attractive to VC investors

- The right stage in a company’s journey to seek VC investment

- How to work with Alethia Venture Partners

- What the fund is looking for in the founders and brands it invests in

Stay tuned for our next episode dropping on April 17. 

About Erica Duecy, host:

Erica Duecy is founder and host of Business of Drinks, and one of the drinks industry’s most accomplished digital and content strategists. She has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. She also has led digital editorial teams at Architectural Digest and Saveur magazines. Her content, podcast, and video programs have won more than 40 digital and editorial awards. She is a WSET Advanced-certified wine and spirits communicator, and author of the cocktail book Storied Sips (Random House), about the real-life stories behind the world’s most famous cocktails. 

 

To learn more about Erica Duecy:

https://www.instagram.com/ericaduecy/

https://www.linkedin.com/in/erica-duecy-4a35844/

https://twitter.com/ericaduecy

And if you like what you heard, help us spread the word! Follow Business of Drinks, and rate and review our episodes on any platform where you’re listening. It really does help us find new listeners. Thank you

JW Wiseman of Curious Elixirs is a bonafide audience whisperer. After working as an early marketing hire at the media startup Thrillist, he went on to found a growth marketing firm. That experience unlocked the key audience expansion strategies he’s employed at his cult-y non-alcoholic RTD brand, Curious Elixirs.

This is a brand you won’t find on store shelves. It’s nearly all DTC subscriptions, with a bit of prestige on-premise placements (like the Blue Note jazz club in NYC). Curious Elixirs was audience-driven from the get-go. JW launched the brand on Kickstarter — not because he needed the money, but rather as a smart tactic to grow community and demand around the product. 

Since launching in 2015, the brand has been laser-focused on its subscription strategy and customer loyalty, and now serves millions of consumers a year.  

The brand’s growth has been driven by word of mouth in sober curious communities, and by really effective targeting on Facebook, Instagram, and TikTok. Yes, social channels are STILL performing very well for Curious Elixirs. So much so that the brand is up 40% in sales year over year.

Want some tips from Curious Elixirs’ wildly successful playbook? In this episode, JW discusses:

- How to grow — and sustain! — a community around your brand

- Strategies for building word-of-mouth referral 

- How to build a successful DTC subscription business in today’s marketp

- Why video — and UGC content specifically — should be the backbone of your social strategy

- Low-cost, IRL customer events and activations

- Why customer loyalty is the No. 1 KPI you should pay attention to

And more! Give a listen.

About Erica Duecy, host:

Erica Duecy is host of Business of Drinks, and one of the drinks industry’s most accomplished digital and content strategists. She has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. She also has led digital editorial teams at Architectural Digest and Saveur magazines. Her content, podcast, and video programs have won more than 40 digital and editorial awards. She is a WSET Advanced-certified wine and spirits communicator, and author of the cocktail book Storied Sips (Random House), about the real-life stories behind the world’s most famous cocktails. 

To learn more about Erica Duecy:

https://www.instagram.com/ericaduecy/

https://www.linkedin.com/in/erica-duecy-4a35844/

Cannabis drinks are showing substantial growth, and even displacing alcohol among younger consumers. 

I got the scoop on how this emerging category is shaping up — and the legalities around THC-infused drinks — from Diana Eberlein, president of the Cannabis Beverage Association (CBA), a non-profit trade association established to represent and advocate on behalf of THC and CBD beverage brands. She’s also an expert in THC emulsification, as the VP of Marketing & Business Development at SōRSE Technology, a supplier of CBD, hemp, and terpene emulsions for food, beverage, and topical manufacturers.

Diana walks us through the regulatory landscape of THC drink, as well as the lobbying efforts underway to expand access to these beverages. 

As background: In the U.S., about half of Americans now live in a state where recreational cannabis is legal, and the market for cannabis is growing exponentially. 

So who’s buying cannabis-infused drinks? It’s largely Millennials and Gen Zs, with older consumers mixed in.

We know — from the 2023 Gallup poll — that younger consumers are not onboarding to alcohol like prior generations. And they see alcohol as unhealthy compared to cannabis — particularly Gen Zs. In fact, two in three 18- to 24-year-olds say they are somewhat or very concerned about the impact of drinking on their health, according to a July 2023 CivicScience survey of 5,545 respondents.

Also, we know that marijuana use is displacing alcohol among younger audiences. From 2015 to 2022, the percent of US adults aged 18 to 25 who reported they had used any alcohol in the past month dropped by 8 percentage points to about 50% of those surveyed. Over the same time period, that group’s use of marijuana shot up by 6 percentage points, to about 25% of those surveyed, per the National Survey on Drug Use and Health. 

It appears — looking at the data, and speaking with executives from cannabis drinks companies — that these consumers are not going sober. Rather, declines in alcohol are somewhat proportional to gains in cannabis use.

In this episode, we cover:


The appeal of cannabis-infused beverages for consumers looking to cut back on alcohol.  


The difference between hemp-derived Delta 9 THC drinks and traditional cannabis.


Where THC drinks are legal in states across the country (and where they’re available in bars and restaurants!).


CBA’s 2024 education and lobbying efforts on Capitol Hill.


The emulsion technology behind making fast-acting THC drinks.


Predictions for the future of the cannabis drinks business (spoiler: big things are coming). 



And that’s just the beginning. Give a listen for more. 



About Erica Duecy, host:

Erica Duecy is host of Business of Drinks, and one of the drinks industry’s most accomplished digital and content strategists. She has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. She also has led digital editorial teams at Architectural Digest and Saveur magazines. Her content, podcast, and video programs have won more than 40 digital and editorial awards. She is a WSET Advanced-certified wine and spirits communicator, and author of the cocktail book Storied Sips (Random House), about the real-life stories behind the world’s most famous cocktails. 

 

To learn more about Erica Duecy:

https://www.instagram.com/ericaduecy/

https://www.linkedin.com/in/erica-duecy-4a35844/

Are cannabis drinks on your radar? 

If not, they probably should be. Right now, THC-infused beverages are just a sliver of the $15.8 billion cannabis category, but the segment has grown more than 40% since 2021, and keeps expanding.

As the THC drinks segment grows, those dollars are going to be pulling from other categories — namely alcohol. 

To learn more about this segment, I decided to bring on one of the most influential innovators in the cannabis drinks space, Jake Bullock. He’s co-founder and CEO of Cann. It’s a low-dose THC drinks brand that launched just 4 years ago, in 2019. And if you haven’t heard of it, you might be surprised to learn that it’s already doing some $36 million in sales, selling upwards of 9 million cans a year. 

In this episode, Jake shares:

- How he convinced skeptical dispensaries to take a chance on low-dose canned tonics when most of the competitors were formulated at 2x to 5x the THC dosage.

- How Cann’s positioning as a “better-for-you” alternative to alcohol drove collaborations with celebrities and influencers, growing Cann’s audience quickly.

- Where Cann is directly competing with alcohol in 30+ markets via DTC channels, and on liquor store shelves in Minnesota, Connecticut, and other states. 

- How Cann funded its rapid growth to 9 million cans annually in just 4 years.

- How beer distributors are making up for declines in their portfolios category by replacing open truck space with THC brands.

- Who’s buying Cann (the audience breadth may surprise you!), and how the company reaches potential consumers.

And that’s just the beginning. Give a listen for more.

About Erica Duecy, host:

Erica Duecy is host of Business of Drinks, and one of the drinks industry’s most accomplished digital and content strategists. She has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. She also has led digital editorial teams at Architectural Digest and Saveur magazines. Her content, podcast, and video programs have won more than 40 digital and editorial awards. She is a WSET Advanced-certified wine and spirits communicator, and author of the cocktail book Storied Sips (Random House), about the real-life stories behind the world’s most famous cocktails. 

 

To learn more about Erica Duecy:

https://www.instagram.com/ericaduecy/

https://www.linkedin.com/in/erica-duecy-4a35844/

https://twitter.com/ericaduecy