34: How Surfside Became the Fastest-Growing RTD — With Clement Pappas - Business of Drinks

Ready for a meteoric growth story?! Today we talk with Clement Pappas, co-founder and CEO of Stateside Brands, the maker of Surfside Iced Tea + Vodka, and Stateside Vodka and Stateside Vodka Sodas.  For listeners who are not on the East Coast, this brand is suddenly everywhere. Last year, the Surfside line alone grew by 1 million cases to 1.3 million cases. And they’ve already surpassed that amount this year — by mid summer!  In fact, year-to-date Surfside is the No. 1 fastest-growing spirits RTD brand in the U.S. with top velocity rates and dollar share gains (via BWC data). This story illustrates the transformative effects an RTD line extension can have for an alcohol brand. In this case, the core brand was Stateside Vodka, which launched in 2015 as a local Philly alternative to Tito’s Vodka. During the pandemic, Clem and team identified that consumers were hitting seltzer fatigue and looking for alternatives — i.e. an emerging white space for premium, vodka-based hard teas and lemonades. Stateside was an early mover, building up a strong core market in Philadelphia, and expanding throughout the mid-Atlantic before exploding onto the national stage.  They leaned into label transparency — positioning their products at the 100 calorie per can level with 2 grams of sugar and 3 grams of carbs. And they developed fun and cheeky marketing, positioning the brand as a “0 bubbles” alternative to hard seltzer. And it turns out that these things resonate with younger consumers!  Key Takeaways -What led Stateside to identify an innovative new white space in RTDs -The thought process that went into developing two hit RTD lines — carbonated and non-carbonated -How Surfside landed on its simple, effective branding and messaging strategy -The extensive flavor and formulation process that yielded a line of crisp, sessionable — and craveable — RTDs -How Stateside leveraged Covid restrictions to double its volumes -Local partnerships (baseball teams!) that drove early brand awareness and growth -How Stateside partnered with NJ distributor Fedway to build out the distribution and marketing plan that enabled exponential growth -How Stateside quickly scaled its sales and marketing machine  -The brand’s most successful accounts (think stadiums and golf clubs!) -The demographic that’s consuming the most Stateside products -How Surfside’s on-premise sales strategy is driving high velocity  -How the brand is fueling growth from an investment perspective Stay tuned for our next episode dropping on Aug. 7.  Episode Links: Caroline + Scott’s Last Call playlist: ​​https://open.spotify.com/playlist/2AB1nSC0OVoy6LNa5VizT1?si=25659372344e43de For the latest updates, follow us: 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 sales representative at Great Lakes Wine & Spirits.  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. Thank you!

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