Business of Drinks 37: How BeatBox Beverages Scaled to $100 Million in Sales with Co-Founder Justin Fenchel - Business of Drinks
Today, we’re talking with Justin Fenchel, a co-founder and the CEO of BeatBox Beverages. For those unfamiliar with the brand, it’s an 11% ABV, wine-based RTD party punch in flavors like Blue Razzberry, Pink Lemonade, and Fruit Punch.
Sound like fun? Well, fun — and fun flavors — are its main selling points, and this brand is on fire, especially with Millennial and Gen Z audiences. BeatBox did more than $100 Million in sales last year, and is on track to double that again this year.
The brand first made headlines in 2014 for getting one of the biggest investments on Shark Tank’s history, with a $1 Million dollar investment from Mark Cuban. But lest you think it was smooth sailing from there on, that wasn’t the case.
BeatBox toiled away for years, with sales flatlining as the brand tweaked its product and systems in real time, changing formats (moving from 5L bag-in-box to single serve) and distributor networks ( moving from liquor/wine to beer distributors). With dedication, the team kept pushing, until it landed on the winning formula that unlocked exponential growth.
Now, a decade after that first Shark Tank appearance, BeatBox is running on a few years of +100% sales growth. Justin shares his hard-won insights on how to persevere despite product-market fit issues and funding challenges. And then, how to support hockey-stick growth from strategic, operational, and human resources standpoints.
We discuss:
The market whitespace BeatBox identified and built its product on
Landing on fun and flavor as key differentiators
Early audience growth insights
Building a brand — and company culture — with staying power
How to leverage media appearances (like Shark Tank) to attract investment and retail placements
Maintaining adaptability in challenging times
Keys to building strong relationships with distributors and retailers
Why BeatBox ultimately switched from liquor/wine to beer distribution channels
How to engage consumers authentically through experiences and word of mouth
Marketing strategies to build a community of superfans
How to incorporate sustainable practices into a winning business model
Links:
Episode 33: Fundraising Masterclass with Giuseppe Infusino (with Last Call discussion of Dan Petroski / Massican Wine)
Stay tuned for our next episode dropping on Sept. 18.
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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/
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