We always try to innovate.
Speaker AWe always try to be at the forefront of a lot of that innovation because there's not a lot of red tape.
Speaker AIt's not like moving a battleship.
Speaker AWe're, we're actually pretty nimble.
Speaker ASo we're able to put liquid in can pretty darn quick.
Speaker AI love to be a disruptor in space.
Speaker AI love to, you know, bring really good products to the consumer and help accelerate that.
Speaker AAnd it was just kind of everything packaged in one.
Speaker BWelcome back to the logistics and leadership podcast.
Speaker BI'm one of your co hosts and founders of Veritas Logistics, Justin Mains.
Speaker BToday we have a guest bringing a unique perspective to growing a CPG brand in the alcohol space.
Speaker BWe haven't had one before.
Speaker BHe has a tough experience.
Speaker B15 years specifically.
Speaker BHe was one of the founders of Yonkers Brewing who grew into a multi state distributor.
Speaker BHe was the first employee at Lover Boy Beverages.
Speaker BYou can find it in nearly every retailer.
Speaker BLooking forward to this one.
Speaker BNick Califano, welcome to the podcast.
Speaker APleasure to join you, bud.
Speaker AExcited to be here.
Speaker BSo Nick, you've done your dabble in CPG for a while.
Speaker BI know you did some consulting for CPG brands as well.
Speaker AExperience.
Speaker BTell us, tell us who you are.
Speaker AYeah, 100%.
Speaker AYeah.
Speaker AAnd thanks for that intro.
Speaker AYou know, after college, started my career as an analyst for a asset for a big asset manager over in New York City working with small mid micro cap stocks.
Speaker ASo really got to open up the hood on a lot of businesses.
Speaker AJust saw how they worked, what worked, what didn't work.
Speaker AGot to talk to a lot of the employees within.
Speaker AJust really kicking the tires.
Speaker AThat's really what set me off.
Speaker AJust thinking about business in general and maybe taking one on myself, doing that for a handful of years.
Speaker AHad an opportunity to start a brewery as you mentioned, Yonkers Brewing Company back in 2012.
Speaker AI'm a Yonkers native just north of New York City.
Speaker AYonkers had and continues to have a lot going for it.
Speaker AThird largest city in New York.
Speaker AA lot of people know about it, whether it be from certain rap artists that come out of there, some movies.
Speaker BAll right, give us for the listeners, give us some examples.
Speaker BWho, who are some OGs from Yonkers.
Speaker AMary J. Blige Deluxe, DMX on all Yonkers names.
Speaker BOh, okay, there we go.
Speaker AAll right.
Speaker ABut yeah, yeah, huge, huge growth area for art music.
Speaker AIt's right on the the Hudson River.
Speaker AIt's 25 minutes north of New York City.
Speaker ABut when what me and my buddy John at the time, found a lot of people were moving out of Yonkers and moving elsewhere.
Speaker AThey weren't moving into it.
Speaker AWe wanted people to come in and see the beauty of it and see what.
Speaker AWhat was happening down there and the opportunity and the potential.
Speaker AAnd at that time, we saw that people traveled for beer.
Speaker AYou know, beer created this local community that people travel to.
Speaker ASo we really want to put our flag in the ground.
Speaker AAnd we ended up getting some property right off the Yonkers Metro north stop, again, 25 minutes north of Grand Central.
Speaker ASuper easy access.
Speaker AAnd.
Speaker AAnd we cultivated a little community for people to come experience it.
Speaker AAnd I'm happy to report we were part of a really beautiful renaissance that happened down there.
Speaker AUm, and over the course of the last 15 years, there's been some amazing stuff happening over there.
Speaker AUm, but in my opinion, the.
Speaker AThe beer industry was changing from 2012 to 2015 to 2018.
Speaker AAt that time, we were one of a very few breweries in not just Westchester county in New York, but New York State in general when we first started in 2012.
Speaker AAnd by 2015, we were one of a few hundred, you know, and it was just boom.
Speaker AAnd it was amazing to see how people just traveled for beer.
Speaker AThey supported their local community.
Speaker AAnd in.
Speaker AIn my eyes, it just got a little too crowded, though, as we started to try to build the business.
Speaker ANow there was a beer brewery on every corner, so everybody wanted to try the local beer.
Speaker ABut from a business standpoint, it's just getting harder and harder to get that shelf presence some over at retail and to get people to.
Speaker AWasn't hard for people to try it, but to stick with it.
Speaker ANot because it wasn't good, but because there were just so many amazing options out there.
Speaker AAnd at that time, also saw that there was a shift of people caring less about where it was being produced, but what was actually in it that we were producing.
Speaker ASo when you turn over beer, there's no nutritional panel.
Speaker APeople were caring about the calorie intake, the how many carbs are in the beer, the sugar content, what are they putting in their body.
Speaker AAnd I saw the market shifting a little bit that way.
Speaker ADidn't really know what to do with that.
Speaker ABut then, as luck would have it, I was introduced.
Speaker AI had a friend in common with Kyle Cook, who is on the show Summer House.
Speaker AHe was on the show.
Speaker AHe was doing some amazing things there.
Speaker AHe had this amazing platform and totally separately wanted to do something in the CPG space, specifically in tea and specifically in Better for you.
Speaker ABecause at the time there's really just one alcohol tea brand out there.
Speaker AYou probably know what it, what it is, what it was.
Speaker AAnd historically it's, it's not necessarily the best thing for you from a sugar standpoint.
Speaker AAnd it was amazing because, you know, tea's the second most widely consumed beverage outside of water in the world.
Speaker AIt's usually associated with better for you qualities or its nutritional value.
Speaker AYet the only alcoholic tea out there was the total opposite.
Speaker ASo we kind of want to turn it on its head.
Speaker AHad the platform from Kyle.
Speaker AMy background being in Bev Alk, it's not very easy to get into Bev Alk.
Speaker ASo having some experience there really gave us an upper hand on how to approach certain markets.
Speaker AIn 2018, we launched Lover Boy.
Speaker AOfficially, we were able to put it on the show.
Speaker AWe were able to do some amazing things.
Speaker AAgain, plant our flag in the ground and then just have it take off from there.
Speaker BThat's amazing.
Speaker BAnd it sounds like you met some awesome people that were able to make some introductions.
Speaker BYou hit it off with Kyle.
Speaker BI'm assuming he uses a reality show, Summer House on Bravo as a launching pad for this idea he has to make a healthy alcoholic based tea.
Speaker AYep.
Speaker BHe brings the idea to you.
Speaker BYou guys are spitballing.
Speaker BI'm assuming what made you want to commit and invest in this, this business plan to disrupt the beverage industry with a healthy alcoholic tea?
Speaker AYeah, well, I think you said the word.
Speaker AIt's.
Speaker AIt's about disrupting markets.
Speaker AI mean, I think that's exciting, especially being, you know, put your entrepreneurial hat on, you look for disruptors in the market.
Speaker AAnd Kyle's idea on what he wanted to do and bring to market was definitely a disruptor in the space.
Speaker AOne coming at it from not a alcohol background and set in his ways.
Speaker ASo he, he looked at things a little differently.
Speaker AI had some of the alcohol background, so I always pushed, he always pulled.
Speaker ASo it was a, it was a good yin and yang of this is how things are done and then trying to flip it on its head a little bit.
Speaker ASo it allowed us to approach the market a little differently.
Speaker ABut again, seeing where having my finger on the pulse of where the alcohol space was going.
Speaker AAnd again, there's so many breweries popping up and you know, at, at the time, you know, 2012, 2015, craft beer was the only growing market in, in the alcohols, I.
Speaker AIn especially the, you know, in alcohol.
Speaker ABut outside of wine and wine and spirits, it wasn't macro beer, it was craft beer that was growing.
Speaker AAnd towards 2017, 20, 18, 16, 17, 18.
Speaker AIt started to slow just because there was again so many brands out there.
Speaker ASo many people were doing incredible things, but there was so many, so much option for the consumer.
Speaker AIt was just hard for one brand to really break through.
Speaker AAnd I lived through that and I saw the opportunity with the platform, the marketing opportunity there, but not only the marketing opportunity, bringing using that platform for an amazing product that was trying to be a disruptor.
Speaker AAnd altogether it allowed a very small brand to accelerate to the large stage and play with the big boys and not have to spend hand over fist to do it.
Speaker ASo it was a bit of a cheat code.
Speaker AWe discovered that early on.
Speaker ABut you know me, I, I love to be a disruptor in the space.
Speaker AI love to, you know, bring really good products to the consumer and help accelerate that.
Speaker AAnd it was just kind of everything packaged in one.
Speaker ASo I, I said, yeah, I want to, I want to move in this direction and go towards the better for you alcohol space, you know, White Claw truly paved the way.
Speaker AWe followed their tails there.
Speaker ABut we were the first alcoholic tea truly outside of Twisted.
Speaker ASo we were able to really be a leader in that area.
Speaker BIt sounds like it.
Speaker BAnd I notice you all pop up more and more.
Speaker BI've primarily worked with CPG brands.
Speaker BSo as I see these brands grow, I typically would try them and then, you know, pursue a potential partnership with them.
Speaker BBut those brands, to get to that point, even on the shelf of a retailer, those things don't happen overnight.
Speaker BThey grown.
Speaker BA CPG brand, you know, non alcoholic may, even if it's a snack food company, is one of the hardest things you can do as an entrepreneur, 100%.
Speaker BThen you add in, you know, all the red tape that comes with scaling, you know, a CBG brand with alcohol and they're completely different challenges.
Speaker BSo I read with lover boy that Kyle wanted out within 10 months before the next season of Summerhouse came on.
Speaker BYou joined First Employee.
Speaker BTell us about that 10 month stretch.
Speaker BWhat did that look like and how did you all make it happen?
Speaker AYeah, a lot, A lot of moving pieces.
Speaker AObviously, you know, putting a brand together.
Speaker AKyle had some liquid in can as samples when, when I joined, we honed in on the flavor process.
Speaker AWorked with a very small flavor house.
Speaker AI mean, very small.
Speaker ALike a guy in Brooklyn.
Speaker BOh, real quick, Nick, are these, are these, you know, conversations that you're initiating through your previous experience with Yonkers or are you all just googling, asking, you know, for referrals?
Speaker BWhat did that look like?
Speaker AYeah, all of the above.
Speaker AYou Know, going back to Yonkers, I. I really was headed the operations piece, you know, from supply chain and.
Speaker AAnd all that.
Speaker ASo my background, really.
Speaker ASales background originally, but then brought that to the operational piece.
Speaker ARight.
Speaker AFinancials, operations, supply chain, distribution, really wearing every hat you could.
Speaker ARight.
Speaker ASo it.
Speaker AIn creating Lover Boy, it was, yeah, taking what we.
Speaker AWhat I had learned from the craft beer side, but then learning about all the different challenges.
Speaker AThe government really didn't know what to do with this new beverage and the white claws of the trulies.
Speaker AIt's.
Speaker AIt's not a malt base, it's a sugar.
Speaker AIt's a fermented sugar cane.
Speaker AThe government didn't really know what to do with it, so they taxed it like a beer.
Speaker ALike malt, though it wasn't malt because it wasn't a wine and it wasn't a spirit.
Speaker ASo it, it sat in this weird category.
Speaker ASo learning all the nuances on how the government was looking at it, how it was being regulated, who it can be distributed through, because you have both liquor and wine and then beer distributors with different licensing, they're able to distribute different products where it could be sold, how it needed to be produced, the regulatory bodies that oversaw that, whether it was the TTB or fd.
Speaker ASo, yeah, a lot of challenges.
Speaker ASo taking some of my past learnings, but then there's a lot of calling.
Speaker AThere wasn't a lot to Google because nobody knew what it was.
Speaker AIt was calling up a lot of the regulatory bodies directly to figure out, how are they looking at this?
Speaker AWhat do we need to do?
Speaker AAnd funny enough, in most cases, they said, they shrugged their shoulder and said, you know, we're still trying to figure it out too.
Speaker ASo.
Speaker ASo it was a lot of, you know, you don't want to say it.
Speaker AIt was like ask forgiveness, not permission on a few things.
Speaker ANot doing anything wrong, but just trying to move the needle and making sure that we were able to hit certain timelines.
Speaker AThe, the big opportunity with the platform was.
Speaker AAnd they're on season 10 right now, which is amazing.
Speaker ASo we started, I think it was season four.
Speaker ASo we've had really six seasons of this opportunity.
Speaker AKyle's going to kill me if I got those numbers wrong, but I think that's.
Speaker AThat's where it was.
Speaker AThey film during the summer, obviously.
Speaker AShow's called Summer House, but it doesn't air until the following spring.
Speaker ASo February, March and April.
Speaker ASo it's a tremendous marketing opportunity.
Speaker ASo if we have any innovation, we try to, you know, streamline it, get Product ready for summer, knowing that the whole world is going to see it next spring.
Speaker AAnd then that's when we try to time a huge launch.
Speaker ASo really we started in 2018 and in three months we, we made full, full court press on trying to get liquid and can the right way, getting it to the summer house to be on the show in the summer of 2018 to then truly officially launch the spring of 2019, correlating to the show airing.
Speaker ASo then, you know, working into your world, it wasn't just getting the right distributors and partners from summer to the following spring, it was figuring out logistics.
Speaker AWhere are we going to produce it, where are we going to warehouse it, which distributors are we using, trying to figure out the lanes and so on and so forth.
Speaker ASo it was really, you know, it was us two at the beginning and then we, we built a really strong team of five, really three, then four, then five within the next five, six months to then properly launch in the spring of 2019 and just have our, all our ducks in a row.
Speaker BSo was there any point?
Speaker BBecause it sounds like you all gave yourself a deadline.
Speaker BI mean, you, you all had this incredible platform to, to promote this new brand is a disruptor to an audience who ate it, ate it up.
Speaker BYou know, I imagine it was flying off the shelves when, when it was first launched, but you all gave yourself a deadline then.
Speaker BIt sounds like you, you had to pretty much reverse engineer from the start to meet that deadline, you know, so the big launch could, could happen the way you wanted to happen.
Speaker BWere there any challenges?
Speaker BWere there any, you know, any moments during that time where you want to throw in the towel?
Speaker BIt's like, yeah, I don't, I don't foresee this working.
Speaker AYeah, a few times.
Speaker AI mean, as you're working backwards, like you said, you have a deadline and then you try to work backwards.
Speaker AI had, you know, quite a bit of years in, in the alcohol space, but the majority of product was going into keg.
Speaker AWe don't do keg here.
Speaker ASo we were working on, you know, different containers were specifically in six packs when we launched.
Speaker ASo you had a six pack can, six pack wrap, you have your tray, you have your corrugated, you have all the different pieces that make the unit.
Speaker AAnd we didn't have all those units on the craft side.
Speaker ASo, you know, working through and trying to put all our ducks in a row.
Speaker ASometimes you miss a little piece in that supply chain and you're like, oh, this is a pivotal piece in, you know, in our bomb when we're trying to build something.
Speaker AYeah, we have the liquid, we have the can, we have the top, we have the six pack wrap.
Speaker AAnd then, oh, we forgot the tray.
Speaker AWe forgot to order the tray or we have the tray.
Speaker AOh shit, we forgot to.
Speaker AWe, we actually wanted printed trays and made make sure that lover boy scattered all over so everybody knew what it was.
Speaker ASo you're moving forward, then it's two steps back and you know, you're bouncing back and forth and there were just a lot of times where cams were delayed or corrugated was delayed and you're working with, you know, five, six, ten different vendors trying to get them to work on your timeline and nobody's working on your timeline, so just trying to manage it all.
Speaker AAnd there were plenty of times where just felt like we were dead.
Speaker ANot that we were giving up, but that we were dead.
Speaker AThere was no option and no way that this was going to be going to market when we wanted it to.
Speaker ABut somehow, some way you have the hard conversations.
Speaker AYeah, you're on the brink of tears trying to have a convo and somebody you know is like, oh, I'm gonna, I'm gonna move some stuff around to try to make this work for you.
Speaker AIn this industry, everything is five to eight week timeline.
Speaker ARight.
Speaker AThere's a lead time of five to eight to 12 weeks in everything that we do.
Speaker AI think that was the hardest part to realize is, okay, we want cans, we, we need cans in two weeks.
Speaker AThey're like, that's a 12 week process.
Speaker AYou're not getting cans in two weeks.
Speaker AThen you're learning about which vendors have the ability to, you gotta befriend them, you may need to send them something.
Speaker ABut there is some variability in their, in their timeline and the lead times.
Speaker AAnd you, you learn that the hard way and ha.
Speaker AHaving the, the deep convos of please, please, please, please, please try to move me up.
Speaker AAnd you know, somehow, some way, it, it tends to work out.
Speaker BOh, relationships matter.
Speaker BAnd it's, it seems to be a common theme with these conversations where, you know, entrepreneurs or, you know, integral pieces to, to companies, they feel like they're dead in the water.
Speaker BAnd you know, call it God's grace, lock, whatever you want to call it, they find a way out of it.
Speaker BThey find a way through the adversity.
Speaker BAnd it sounds like you all, you know, kind of fit that mold as well.
Speaker BBut you all are unique.
Speaker BWhere you started in three states, you moved to, you know, 40 plus states, 150, you know, distributors, you all, you know, explode because of the platform the audience watching, you know, Summer House, it's not like, you know, we have our three states.
Speaker BThis is our, you know, supply chain will be to build it in three states.
Speaker BHow did it, I mean how did you attack meeting demand, national demand?
Speaker BFor everyone watching the show that's wanting to try this, this new beverage to building out the supply chain network across the U.S. those things are, can't wrap my head around it because I haven't done it.
Speaker BBut like give us more insight there.
Speaker AIt was really hard forecasting.
Speaker AForecasting is still difficult for us just because the demand and things change and we always try to be innovative and we launch new SKUs all the time and you never really know how they're going to work because we have so many partners.
Speaker ALike you said, we're in 44 states, over 150 distributor partners.
Speaker AIt's hard to just get true insight into what everybody's going to take with every new innovation you get.
Speaker ABut when we first started we just really had no clue how the brand was going to take.
Speaker AWe, we had an idea and we were very optimistic.
Speaker ABut we put product out there in the market.
Speaker AIt went gangbusters like we were hoping it would and we couldn't keep up with demand.
Speaker AWe had a partner, CO packing partner out in the Midwest who's been great.
Speaker AWe actually still use them to this day.
Speaker ASo our first CO packing partner is still one of our main partners right now.
Speaker ABut they couldn't keep up with the demand we were seeing and we had no time to move product from their facility to a fulfillment facility.
Speaker AWe actually had trucks picking, backing up to their door, putting it on a truck and heading out to our distributors.
Speaker AWe couldn't keep up with it and we actually left a ton of money on the door because you know, a lot of times you have to sign, you have to decide what kind of co packer you're going to go with or you have to grow into certain co packers.
Speaker ASo you're not going to get the biggest one in the United States to sign on the dotted line before you ever launch.
Speaker AYou're going to say, yeah, I heard this story before, you're the best brand out there, blah, blah, blah.
Speaker AUntil you're doing X amount of volume, we're not taking you on.
Speaker ASo we signed with CO packer who could do ample amount of volume but just couldn't scale and keep up with how we were launching.
Speaker AWe ended up hitting a, you know, after the initial burst we ended up finding additional partners to, to help us keep up with it.
Speaker ABut that Initial run, they just couldn't produce enough.
Speaker AAnd we couldn't believe what was happening.
Speaker AWe never could have have foreseen that happening right off the bat, but it was awesome.
Speaker ATrucks were backing up and we're sending product out and then we were waiting 30 days for more product to be made and then waiting 30 days for more product to be made, and it just couldn't happen fast enough.
Speaker AYou know, then Covid hit and then Covid is what?
Speaker AYou know, I hate to say it, but it was actually really good for the brand.
Speaker AIt, it leveled the playing field in a really big way where you have all these macro brands.
Speaker AYou have White Claw, which is Marc Anthony brands, Truly was, which is Boston Beer, Twisted Tea, which is also Boston Beer.
Speaker AA lot of people don't know, but you have all these brands that have national distribution.
Speaker AA lot of dollars to spend to get liquid tulips.
Speaker ABut Covid happened and it leveled the playing field.
Speaker AThey couldn't spend their marketing dollars, but we had product on shelf and we had a direct connect to our consumer through the show which was airing and our social media platform.
Speaker ASo we were able to push our consumers to the retail shelves.
Speaker AAnd we had more followers than all these other big names could ever imagine.
Speaker ASo we actually had a leg up in, in Covid.
Speaker AWhat kind of killed us was a lot of the supply chain stuff.
Speaker AWe couldn't get cans, you know, can production stopped domestically.
Speaker AThey couldn't keep up with supply.
Speaker AWe had to import like everybody else from Shanghai, Dubai, Mexico, I mean, you name it, we imported aluminum from there.
Speaker AAgain, a hindrance for us because we didn't necessarily have the, the resources to compete with a lot of the bigger guys on, on the global scale.
Speaker ABut we did it.
Speaker AWe worked our way in it.
Speaker AWe got cans we needed at some point, just like everybody else.
Speaker AOur tankers were, you know, waiting outside the LA port for weeks and weeks and weeks just like everybody else.
Speaker ABut we ended up getting them.
Speaker AWe ended up supplying all the POs that we had.
Speaker ABut Covid allowed us to leapfrog all the other brands.
Speaker ALeaps and bounds, especially the ones that were starting around.
Speaker AWe.
Speaker AWe were.
Speaker AThey got hit by Covid.
Speaker AWe really didn't.
Speaker AAnd then we were able to compete with the big guys because again, it leveled the playing field on a national scale.
Speaker ASo we had consumers going to retail asking for the product.
Speaker AWe had buyers going to distributors asking for the product.
Speaker AThey then distributors calling us asking to carry it.
Speaker ASo we did it ass backwards and we were blessed to be able to do it that way.
Speaker ABut we did it ass backwards, and that's just what allowed us to accelerate really quickly.
Speaker BSo, yeah, very unique way of scaling, you know, an alcoholic beverage brand, CPG brand.
Speaker BI know you all have gotten into a lot of other SKUs, you know, the martinis, the spritzers, THC, which is, you know, I feel like THC now is similar to the category that you all were presenting to, you know, legislation about how.
Speaker AWhat.
Speaker BWhat is this?
Speaker BLike, how do we categorize this?
Speaker BLet's talk about that.
Speaker BWhat do you.
Speaker BLike, you all are launching new SKUs.
Speaker BThere's fads with these CPG brands that.
Speaker BThat often fizzle out.
Speaker BHow do you all stay relevant on shelves, consumers buying it?
Speaker BHow do you continue to develop yourself and reinvent yourself with things like the thc, you know, product that you have now?
Speaker AYeah, it's a great question.
Speaker AI mean, we always try to innovate.
Speaker AWe always try to be at the forefront of a lot of that innovation.
Speaker ALuckily, I keep pointing to the show, but it's really Kyle, his wife Amanda, uh, Carl, who's also part of Team Lover Boy, who's doing some really cool stuff outside of that too, on the non al side.
Speaker ABut they have their finger on the pull.
Speaker AI mean, they're cultural phenomenons.
Speaker AYou know, Bravo 10 years ago wasn't Bravo.
Speaker AToday, Bravo's paving the way in a lot of what's happening culturally.
Speaker ALike I said, they.
Speaker AThey film in the.
Speaker AIn the summer and it airs in the spring.
Speaker AAnd that cadence happens with a lot of their shows, whether it be the fall following summer.
Speaker ABut it's always film and then follows.
Speaker ASo they tend to be a bit of ahead of the curve of what's happening out there culturally.
Speaker AAnd because we're not big, because there's not a lot of red tape, it's not like moving a battleship.
Speaker AWe're.
Speaker AWe're actually pretty nimble.
Speaker ASo we're able to put liquid in can pretty darn quick and do things a lot quicker than other brands tried to.
Speaker AWe were the first espresso martini in a can.
Speaker AYou now have a lot of macro brands trying to do it.
Speaker AYou have a lot of craft brands trying to do it, but we were the first to put it in a can.
Speaker AWe have a canned Cosmo.
Speaker AI think we were the first to do that.
Speaker ACanned sangrias.
Speaker AWe're doing some non alks too.
Speaker AWe're not the first to do non alk, but one of the first non alk teas, which differentiates itself from an actual just tea that doesn't have alcohol.
Speaker AYou know, that takes some explaining, but it's an opportunity to participate in a moment, a drinking occasion without drinking.
Speaker AAnd you're not drinking a spin drift, right?
Speaker AYou're drinking a Lover Boy.
Speaker ASo it still allows you to participate.
Speaker ABut so yeah, we, we participate in a lot of these different categories, try to be first movers in a lot of them.
Speaker AAgain, taking advantage of our size, the being able to act in a, in a nimble way, bringing products to market and taking risks that some of the bigger brands, you know, it's a huge investment for a really big brand to put something new out.
Speaker AAnd it's not necessarily that big of a risk for us because we have a direct to consumer channel we could, we could test and learn there before we bring to retail.
Speaker ASo a lot of opportunity for us to be, you know, first movers and innovators in this space.
Speaker BThat's a great point.
Speaker BAnd some I, you know, didn't really think about is you all can, you know, with your audience and with your, you know, flexibility, y' all can kind of pilot things and see if it's going to catch fire or if it's not worth, you know, rolling out to consumers.
Speaker BSo that's unique in and of itself.
Speaker BBut you know, when you think about it and you don't have to, there's no obviously right or wrong answer.
Speaker BBut what are, what are the three things, you know, that you would credit the leadership team at Lover Boy for the success?
Speaker BAnd I wouldn't say overnight, but you made it through Covid and actually thrived through Covid.
Speaker BYou haven't been around too long.
Speaker BWhat are a few things that you believe your team did that separated yourself from the competition?
Speaker AI think first and foremost is you have to put out a good product.
Speaker ASo it's not putting out shit.
Speaker AIt's making sure that the product you put out, you stand behind and you truly believe in it.
Speaker AYou could always look to make it better and improve on it, but not just putting product out for the sake of putting product out, it's putting good product out.
Speaker ATwo is being able to identify ahead of everyone else culturally what our consumer might be looking for and what voids there might be in the market.
Speaker ASo it's good product, what that product actually needs to be to be able to fill a void in the market and then mentioned it before.
Speaker AHaving a direct connect to the consumer, engaging with the consumer and actually listening to them is huge because we may not have the most followers.
Speaker AKyle, Amanda, Carl may not have the most followers compared to other quote Unquote celebrities out there or celebrity brands out there.
Speaker ABut they have the most engagement I could tell you.
Speaker AThey actually engage with the fans, they care with the fans.
Speaker AThey'll do meet and greets all the time.
Speaker A4 hour long meet and greets with 800 people coming through and the 800th person is treated like the first person.
Speaker AIt's actually exhausting to watch.
Speaker ABut I think that care, that care for your consumer really does bring it full circle.
Speaker AAnd it's not just a get rich money scheme.
Speaker AIt's a quality of connection, quality of product.
Speaker AAnd then putting those two together and knowing what that product should be, I think creates that secret sauce.
Speaker BWell, I'm curious about this as well.
Speaker BYou sin had this, you know, magic puzzle put together.
Speaker BBut what, what is the culture like at Loverboy?
Speaker BBecause it sounds like you are very flexible, you know, very about your, you know, in consumer, you want to invest time and energy into, you know, listen to their feedback because you're making products for them.
Speaker BWhat does that say about your culture and can you give us some insight there?
Speaker AYeah, yeah.
Speaker AI mean we're six years in, which is scary, but it's still very much a startup mentality.
Speaker AMaking sure that we're constantly grinding to put the best product out to making sure we're working hard to again engage and connect with the consumer.
Speaker AAlways trying to innovate.
Speaker AThere's always something happening.
Speaker AAnd we're small so we're 15 employees and again we're a national brand.
Speaker AWe have tremendous amount of distribution partners.
Speaker AWe have at any given time 16 to 20 SKUs.
Speaker AThat where we're managing via DTC and retail.
Speaker AAnd then that doesn't take our actual merch channel into consideration which has a ton other SKUs.
Speaker ASo, so everybody's working their butt off.
Speaker AI want to say it's work hard, play hard.
Speaker AIt's a lot of work.
Speaker ANot as much play as we would like at times.
Speaker ABut you know, we're, we're constantly working to, to get there, but everybody's just working, putting a hundred percent in all the time to make sure that we're just always trying to stay that one step ahead.
Speaker BAbsolutely.
Speaker BAnd I, I would consider, you know, our company a startup too.
Speaker BYou never want to lose that startup feel because I think you lose a lot of that, you know, passion and accountability within the culture.
Speaker BSo.
Speaker BI love what you're saying.
Speaker BI, you know, looking at the brand in general, I would have no IDEA you had 15 people.
Speaker BI mean you clearly don't operate like you have 15 people.
Speaker BIt's that tenfold, but extremely impressive.
Speaker BWhat's next?
Speaker BWhat's next for lover boy?
Speaker AYeah, I mean, the interesting about our brand is we've been able to grow pretty wide quickly because of the show, the platform, our ability to engage with consumers, not just locally, but nationally.
Speaker AI always say, you know, the, the big thing with craft beer being in that space.
Speaker AYou needed a brewery because people needed to come touch the tanks, engage with the brand, to fall in love with it and then they become a, you know, customer for life.
Speaker AWe don't need a brewery, we don't need people to come touch the tanks because of the show.
Speaker AWe're able to engage with our consumer where they are.
Speaker AThey don't necessarily need to come to us.
Speaker AAnd I think again, that's one of our secret weapons.
Speaker AAnd how we've been able to grow so quickly is we've been able to create a loyalty no matter where our consumer is.
Speaker AWe haven't even attacked outside the U.S. you know, we have a huge customer base in Canada and Australia and Europe, England, everywhere, you know, so we have engraved engagement that crosses state lines.
Speaker ABut we've been able to grow quickly.
Speaker AOur challenge has always been the resource to then go deep in all of these markets and you know, craft news always a mile deep in, an inch wide, yet a stake your flag in the ground, build your brewery, you know, engage with your consumer and start to grow from there.
Speaker AAgain, we were able to kind of break down those barriers because of the platform and our engagement.
Speaker ABut now our challenge is making sure we're going deep in all the markets because every distribution partner that we have has 120 different brands with four to six different SKUs per brand.
Speaker ASo no matter how popular you are, no matter how much the consumer loves you, you still need to, you can't forget about your distributor.
Speaker AThey're, they're your customer.
Speaker AIn, in our world, it's a three tier system.
Speaker AWe sell to a distributor who then sells to retail, who then sells to our consumer.
Speaker AWe can't go direct to retail.
Speaker AWe, we have a partner in that distributor.
Speaker AWe can't lose sight of that.
Speaker AAnd we have to make sure that we support them.
Speaker AThat way they support us.
Speaker AAnd to be honest, that's been our biggest challenge, is making sure that we're able to support them the way they need.
Speaker ABecause you have a bigger brand that has 20 sales reps in a, in a territory, they're doing a lot of the heavy lifting.
Speaker AThey're going to get more support from the distributor because the, that's just the way it works.
Speaker ARight.
Speaker ASo we need to be able to show a little more love and go a little more deep in each of these markets that we're in.
Speaker ATo actually answer your question, what's next for us is just making sure that we're, we're going deep in these markets and we're bringing lover boy to all the, all our consumers actually want it.
Speaker ABecause we're in a ton of states where we're still getting DMS from our customers and they're like, when are you coming to so and so state?
Speaker AWe're like, oh, we've been there for two years, you know, but we're in a lot of big name retail stores, the chains, but not everybody does their shopping at the big chain.
Speaker AA lot of them go to their mom and pop.
Speaker AAnd that's really where we need to close.
Speaker AThe gap is the, are the, the, the real local spots.
Speaker AThat takes manpower, that takes resources.
Speaker AAnd, you know, that's our next step is making sure that we're, we're bringing our product to where our consumers are shopping.
Speaker ANot just the big names that sound really great, but the mom and pops who's getting really.
Speaker AThe local business.
Speaker BIt sounds like you guys have handled any challenges or problems you face pretty well.
Speaker BSo I imagine you're going to be on shelves in the Mom Pops shops here in the very near future.
Speaker BA couple more things for you, Nick.
Speaker BI know we've, we've covered a lot, but, you know, you all took a different path to scaling a CBG brand.
Speaker BBut there's likely a ton of similarities for the challenges and the successes that you all have faced.
Speaker BWhat advice would you give to just, you know, someone who's building something similar or just in the same space?
Speaker BWhat advice would you give to them when their back's against the wall and they feel like throwing in the towel?
Speaker AYeah.
Speaker AYeah.
Speaker AA lot of times it's just, you know, that one extra day, that one extra step, and then all of a sudden you forget about yesterday and you crying on the floor in the, you know, infant position.
Speaker AAnd then all of a sudden things change.
Speaker AYou know, I always say every day's a roller coaster.
Speaker ASometimes you want to end it all and then an hour later you're like, this is the greatest day ever.
Speaker AAnd it's just wild how it ebbs and flows.
Speaker ABut honestly, my, my biggest recommendation I see cpg.
Speaker ATo me, a widget's a widget.
Speaker AYeah, there, there are differences in, in the regulations and some of the different steps and intermediaries that you have to deal with.
Speaker ABut from a supply chain standpoint, you need really good partners.
Speaker AYou need that framework and foundation that you could grow from.
Speaker AI always say you need backups to your backups, because you never know.
Speaker ALike I said yes for that favor.
Speaker ASometimes your.
Speaker AYour main partner is just stuck and they can't do it, and.
Speaker AAnd you're not cheating on them.
Speaker AIt's just always nice to have somebody else that you might be able to throw business to, might be able to lean on.
Speaker AAnd all of a sudden, you just expanded your network and you create a backup to a backup.
Speaker ABecause we've been in spots where Covid shut this manufacturing spot down on, because this state is.
Speaker AIsn't allowing people to do it.
Speaker ABut luckily we had a partner in this state who's randomly open for business, and that allowed us to keep, you know, the product flowing.
Speaker AYou never want to get locked in with one person because no matter how much you love them now, you never know what's around the bend.
Speaker ASo always backups to your backups and making sure that you're keeping your supply chain open and that you're always just having multiple partners in different spaces.
Speaker ANot to work them against each other, but you need to be in control, and you can't have your business be beholden to somebody else.
Speaker AIt just happens way too much, and.
Speaker AAnd people respect it.
Speaker AAnd it's not about doing something behind somebody's back or keeping it a secret.
Speaker AEverybody knows that we work with multiple vendors and we bounce around and we try to put business all around.
Speaker ASome people specialize in really big runs.
Speaker ASome.
Speaker AThat's not their sweet spot.
Speaker AThey're more in the middle, maybe a little more expensive, but it may make a little more sense to, you know, not overextend and.
Speaker AAnd all that stuff, depending on timing and seasonality and things like that, but just, again, creating a good foundation, making sure that you have backups to the backups, and being in control of your own destiny, not being beholden to, you know, one little spoke in the big wheel.
Speaker BI love it.
Speaker BIt's strong.
Speaker BI agree.
Speaker BI'm actually debating whether or not to tell my wife I need a couple backups when I get home, but not sure if that were good.
Speaker AYeah, yeah, yeah.
Speaker BWell, Nick, I. I won't.
Speaker BI won't credit you for giving me that advice.
Speaker BBut, Nick, last question.
Speaker BYou know, this could be personal or professional, but what do you want Nick Califano's legacy to be?
Speaker AYeah, I mean, that's a deep question and one that's.
Speaker AIt's interesting.
Speaker AYou Gave me a heads up at the beginning of this, but I wish I had a little more time to think about it.
Speaker ABut off the.
Speaker AOff the cup one want to be a good dad, a good hubby.
Speaker AYou know, I think those are really important.
Speaker AAnd I think no matter who you are, what, you know, lifestyle or how it is at home, I think having a really strong supportive base at home allows you to do everything that work needs out of you.
Speaker ABecause if it's a bit turbulent anywhere in your life outside of work, it's gonna.
Speaker AIt's gonna bleed in.
Speaker AAnd I think that goes the same the other way.
Speaker AYou know, if work's turbulent, it's gonna affect the house too.
Speaker AAnd I think it's.
Speaker AIt's important to try to get.
Speaker AJust create a strong base personally.
Speaker AAnd that's really important to me because everything else kind of feeds off of that.
Speaker AWhen it comes to work and what I want my legacy to be, I think it's just knowing that everything I do, people realize that I care about it.
Speaker AAnd it's doing the right thing by the right people.
Speaker AIt's not just doing it for a quick buck.
Speaker AIt's doing it because I actually care about it.
Speaker AI think it's very transparent to people when you're selling something or you're doing something and it doesn't really matter to you.
Speaker AI think transparency is really important.
Speaker AI mean, it's one of the things we pride ourselves over here.
Speaker AFor better or for worse.
Speaker ACompany's pretty transparent.
Speaker ABut I think it's.
Speaker AI want my legacy to be that I've done things that people know I care about, and it's.
Speaker ABecause it.
Speaker AIt just translates in everything that I do, whether that's bev alk or whether it be, you know, something else in a couple of years in the.
Speaker ANot in alcohol.
Speaker ABut I love connecting the dots between really good products and consumer.
Speaker AAnd I love working with brands that I truly care about because I think it just brings out the best in me.
Speaker ASo I don't.
Speaker AI don't know if that's much of a legacy, but I think it's just making sure that I'm.
Speaker AI'm always doing something that I. I'm truly passionate about because I think it's important for people to see that I'm not full of.
Speaker BYeah, absolutely.
Speaker BI think your legacy is already being built with, you know, the impact you've made in Yonkers, you know, what you're doing today and what you continue to do.
Speaker BSo there's no doubt in my mind it's going to be strong, whatever it is.
Speaker BBut, Nick, I appreciate your time.
Speaker BI truly do.
Speaker BYou share a lot.
Speaker BI learned a lot.
Speaker BSo thank you for that.
Speaker BAnd I know our audience will enjoy it as well.
Speaker ANo, I appreciate it, Justin.
Speaker AThanks for the time.
Speaker AAnd thanks for thinking of me.