Business of Drinks 40: New Innovations in No- and Low-Alcohol Wines With Surely and Arlow CEO Brandon Joldersma - Business of Drinks
In this episode, we're joined by Brandon Joldersma, CEO of Surely and Arlow, two exciting players in the non-alcoholic and low-alcohol wine space.
Brandon brings a wealth of experience from the beverage industry, having worked in restaurants, hard cider, and whiskey before taking the reins at Surely. We discuss Surely's origin story, its growth strategies, and its transition from direct-to-consumer to national retail on the path to racking up $20 million in sales over the past three years.
Then we dive into the recent launch of Arlow, a groundbreaking low-alcohol brand, offering wines at 6.5% ABV. Low-alcohol wines are an area of anticipated growth for the wine category in the coming years, with volumes predicted to grow at a CAGR of +14% between now and 2027, according to IWSR. Arlow is leveraging a first-mover advantage to build sales and brand recognition for its growing audience of affluent, health-conscious Millennial consumers.
Some key takeaways:
• The non-alcoholic and low-alcohol wine market is growing rapidly, driven by consumers seeking to moderate their alcohol consumption.
• Creating a new category (like truly low-alcohol wine) can provide a first-mover advantage, but also requires significant consumer education.
• Transitioning from direct-to-consumer (DTC) to retail distribution can significantly boost revenue, but requires careful planning and execution.
• Product development in the non-alcoholic wine space is especially challenging, requiring innovative approaches to replicate the taste and experience of traditional wine.
• Transparency in ingredient labeling and a focus on health and wellness can be key differentiators in the market.
• The target demographic for non-alcoholic and low-alcohol wines tends to be affluent millennials who are health-conscious but still enjoy drinking occasionally.
• Influencer marketing and in-person tastings ("liquid to lips") are crucial strategies for building brand awareness and trust.
• Securing national retail accounts can provide substantial growth opportunities, but these partnerships take time and strategic pitching.
• Also, one KEY MISTAKE not to make when launching a drinks brand.
Stay tuned for our next episode dropping on Oct. 30.
LINKS:
On Last Call, we discuss: Is the bev-alc slump part of a cyclical slowdown? See what Time magazine had to say, way back in 1986!
https://time.com/archive/6706878/blithe-spirits-for-the-sober-set/
And join the debate on LinkedIn: https://www.linkedin.com/posts/erica-duecy-4a35844_ready-for-a-mind-blowing-moment-would-activity-7234563401622900737-hR8Y
For the latest updates, follow us:
Business of Drinks
LinkedIn: https://www.linkedin.com/company/business-of-drinks/
Instagram: https://www.instagram.com/bizofdrinks/
Erica Duecy, co-host:
Erica Duecy is founder and co-host of Business of Drinks, and one of the drinks industry’s most accomplished digital and content strategists. She runs consultancy and advisory arm of Business of Drinks, and has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies.
https://www.instagram.com/ericaduecy/
https://www.linkedin.com/in/erica-duecy-4a35844/
Scott Rosenbaum, co-host:
Scott Rosenbaum is co-host of Business of Drinks, and a veteran strategist and analyst with deep experience building drinks portfolios. He currently serves as North America Search Manager at Distill Ventures. He was formerly the Vice President of T. Edward Wines & Spirits, a New York-based importer and distributor.
https://www.linkedin.com/in/scott-m-rosenbaum/
Caroline Lamb, contributor:
Caroline is a producer and on-air contributor at Business of Drinks and a key account sales and marketing specialist at AHD Vintners.
https://www.linkedin.com/in/caroline-bork-lamb/
If you like what you heard, help us spread the word! Follow Business of Drinks wherever you’re listening, and rate and review our episodes.