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From Boats to Bevvies with Katie Shields
75 Plays10 months ago
Ever wondered what it takes to bring a food and beverage product to market? I've got just the episode for you! I’m joined by the visionary and brilliant mind behind Tipsy, your go-to for delicious, better-for-you, canned spritzers and wine cocktails. This episode is guaranteed to inspire you to take on the world of entrepreneurship and take up space in a male-dominated industry. Let’s dive in!
We chat:
- Katie’s incredible journey from sales rep to entrepreneurial queen
- Her first entrepreneurial exit and what led her to found her second biz: Tipsy
- The need for clean beverage products & the rise of the conscious consumer
- Branding tips & a BTS scoop at the Tipsy branding process
- Crafting a unique brand in a male-dominated industry
- Navigating the challenges of start-ups
- and more!
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Transcript
Introduction to 'This or More' Podcast
00:00:00
Speaker
Cheers. Yes. Cheers. Hello and welcome back to another episode of This or More, where we dive deep into the world of business with real stories from real founders. I'm your host, Tiffany Napper, and today's episode is guaranteed to leave you feeling inspired and ready to take on the world of entrepreneurship. I'm beyond excited to introduce you to our guest today, Katie Shields, the brilliant mind behind Drink Tipsy, your go-to for delicious,
00:00:28
Speaker
better for you canned spritzers and wine cocktails. Born in Charleston, South Carolina, but crafted for adventure everywhere, Katie saw a gap in the market during the chaos of the pandemic and decided to shake things up a bit, literally. So grab your headphones and get ready to hear Katie's incredible journey from idea to entrepreneurial triumph. We're talking about crafting a unique brand in a male-dominated industry
00:00:52
Speaker
navigating the challenges of startups, building a loyal community, and manifesting success like a true boss. Without further ado,
Katie Shields' Journey from Corporate to Entrepreneurship
00:01:00
Speaker
let's raise a glass to entrepreneurship and welcome Katie Shields to the show.
00:01:05
Speaker
Welcome to This or More, a wild entrepreneurial podcast adventure for bold and brave creatives like you. I'm Tiffany Napper, your host, holistic business coach, corporate music industry dropout, a seasoned five-time multi-six figure entrepreneur, yoga instructor, and your go-to gal for heart-to-heart coffee chats.
00:01:25
Speaker
On this show, we're not just here to share stories. We're here to ignite a fire within you and make you realize that the reality you envision is just the tip of the iceberg. You're wildly capable of achieving that reality and so much more. So my friends, grab your cup of inspiration, settle in, and let's dive into another inspiring episode of This or More.
00:01:48
Speaker
Uh, welcome Katie. I'm so glad you're here. I'm so happy to be here. I'm honored to be here and thank you for having me on your podcast. Absolutely. So we met, oh gosh, I don't even remember when or how we met. I think we met through a mutual client connection who introduced us and then you all hosted, uh, are sponsored, you know, the podcast launch party last July. I think that was,
00:02:13
Speaker
God, feels like it was like three months ago. Time flies. Time flies. So I'm so excited to dive a little deeper. Obviously we've had a chance to hang out a couple of times at different events and I'm excited to just have this like dedicated time to dive in a little deeper to your story and share that story with those listening because it's a pretty cool
00:02:33
Speaker
COVID story, if you will. And, and
The Birth of Drink Tipsy: Inspiration and Naming
00:02:37
Speaker
yeah, so obviously you are the visionary behind the most Instagramable, the most delicious sparkling drink, drink, sparkling spritzer wine. Um, bottoms up, bottoms up. Cheers. Well, let's back it up a little bit and tell me what you were doing before you were the queen of tipsy. Wow. What was I not doing?
00:03:04
Speaker
If you look at my LinkedIn, which you can find me on LinkedIn, Katie Cosgrove Shields, I graduated from Clemson, thought I wanted to go to law school, then really thought hard about the cost and the debt that you incur. And my parents really encouraged me. They were like, go out into the world.
00:03:29
Speaker
you know, make money for a couple years, figure out what you really want to do and be certain about it. So I went into sales. My first job was not glamorous at all. I was selling toilet paper and uniforms, but, you know, it was a grind and it really, um,
00:03:51
Speaker
helped me develop thick skin and learn that, you know, a no is not a no forever. And that's like really when my sales career started and I developed a passion for that space. And eventually I got into medical device sales, worked for Medtronic. I've worked for a company, a startup that was acquired by J and J.
00:04:15
Speaker
um, parlayed that into healthcare software sales with Oracle. So, you know, I was on the like corporate career trajectory, making great money, loving it, feeling really fulfilled. Um, but you know, it became difficult when I
00:04:39
Speaker
became pregnant with my first child. The travel demands were just absolutely insane. And my husband has a pretty grueling schedule as well. He's in medical device sales and
00:04:54
Speaker
I looked at him and I was like, I don't know how I'm going to remain passionate and committed to this if I feel like I can't be a good mother at the same time and be really present for really the most precious years. You don't get those years back.
00:05:13
Speaker
And we now have two children, ages almost five and then my oldest is seven. So during my
Branding and Packaging Challenges
00:05:22
Speaker
maternity leave, I developed, well, before maternity leave and my very last corporate job, I developed a concept, a non-toxic nail salon. It was actually one of the first in the country called Milk Bar.
00:05:41
Speaker
was doing great with that, knew that I wanted to franchise it or have more multiple corporate locations and I thought I was going to be able to do both at least like for a couple years and I quickly learned like that was my first brick and mortar
00:06:01
Speaker
You just learned so much with your first business and especially with the brick and mortar and something that's really customer facing and.
00:06:12
Speaker
both customer centric and employee centric, which all brick and mortars are, but like a salon and beauty concept is you really get to know people. These people are in there regularly. They really build a connection with the people and the business. So it just was not possible to balance both. And it was really hard to walk away from the comfort and
00:06:42
Speaker
like, you know, even like the income and the status of that corporate job. But I knew that in order to serve my customers, serve my employees and the community that we were based in, that I needed to do that. And it all worked out because we franchised, we got acquired in 2020, which was a great success. And then that led me to Tipsy. So
00:07:12
Speaker
Okay. So good answer to a short question. No, it was perfect. We want to hear all of that. And it's so fascinating. I love when I meet fellow entrepreneurs who have a corporate background, because that's me as well. I was in corporate for 10 years. And so now I've officially been an entrepreneur for longer than I was in corporate. But, um, you know, I was 31, I guess I was 31 when I started becoming, when I started my first business and I was an entrepreneur.
00:07:39
Speaker
And I'm so grateful for the lessons I learned in corporate world and especially the things I learned that I never wanted to do or experience again, right? Yes. The good and the bad. It's all learning lessons. So I love that story for you that you were in sales. Okay. Then you went from non-toxic nail salon, which you sold. Congrats. Kudos. Thank you.
00:07:59
Speaker
And then
Building Community and Retail Success
00:08:00
Speaker
Tipsy, take us through the brainchild moment. What was happening? Where were you? Paint me the picture. It really is a combination of events that had a domino effect. So a lot of spelled boat drinks. I'll put it that way. So it's something I've been thinking about. We're in Charleston. We're on the boat all the time. And I am
00:08:27
Speaker
very holistic and health forward. Like I eat clean. I use, obviously I had a non-toxic beauty concept. All of my skincare routine is clean. And I started thinking about alcohol and researching like just all the additives.
00:08:47
Speaker
that are not even disclosed, much like the cosmetics industry and skincare industry. Um, honestly, it's quite the racket that consumers are getting, you know, more strategic about like reading ingredients and studying labels. And I saw a gap in the marketplace, just like I saw with milk bar, which is now called free code, by the way.
00:09:12
Speaker
Um, and I started researching, you know, the hidden ingredients and alcohol, like what is giving me a headache? What's flaring up my allergies? Like what am I doing wrong here? I shouldn't drink two glasses of wine and feel poorly the next day. And so, you know, there's,
00:09:34
Speaker
Of course, in the US, we don't have the same rules as other countries. And, you know, there's just so like added sulfides, added preservatives, all kinds of food dyes, especially in wine, preservatives and toxins that don't even have to be disclosed.
00:09:55
Speaker
And I take issue with that. I think you should know what you're eating and drinking and where it comes from, even down to like the original source and the origin. And we were making a lot about drinks during COVID. Um, really this was pre-COVID and my prior business partner and I,
00:10:15
Speaker
had talked about this idea. And it was just kind of like an idea. COVID had, we're on the boat all the time. Everyone was, what else was there to do? And my husband was like, this is so over the top. You're bringing organic wine,
00:10:34
Speaker
club soda or mineral water, juices, fresh fruit, like find something in a can. We don't have the space for this. And I went about searching for like a wine, but I'd primarily drink wine, tequila or vodka if I'm drinking alcohol.
00:10:54
Speaker
And I just couldn't find anything. And the stuff I did find that was high quality, it tasted really great. But like, it was like a one drink type deal, like nine grams of sugar, way too sweet, way too syrupy. I knew I wanted something that was like a porch pounder, like a boat soda, like I can kick back and like drink these, you know, all day long. So that's really where the idea came from.
00:11:23
Speaker
My husband, Kurt, came up with the name. We were actually driving over the bridge over the Ravenel. I do remember this. And he said the name. We had been trying, like we had thought of like a hundred different names. And he was like, what about Timsey Spritzer's? And we were both like,
00:11:43
Speaker
Oh my gosh, that happens. Yeah, I know. And he always reminds me that he thought of the names, so I had to give him credit. That was in 2020.
Managing a Beverage Startup
00:12:01
Speaker
We officially launched in 2021. There were a lot of expensive mistakes, which I can talk about because I don't want to see other people make the same mistakes. Okay, we'll dive into that.
00:12:14
Speaker
But yeah, here we are. I can't believe it's 2024. Wow. I know. And you started off with how many flavors did you start off with? And how many do you have now? Sure. So we started off with just two flavors. Very basic. What, what we did was look at the market and look at what people drink in the juice section. Like you see orange juice, grapefruit juice, pomegranate juice,
00:12:38
Speaker
you know, maybe like obviously great juice and apple juice. And that was really the reasoning behind the flavor profiles. The launch was really like a pilot launch, if you will. Small order run. There were some mistakes made, like where we had to switch co-packers, you know, when you're doing especially a canned product, really most of the products you see on the market, whether in the food,
00:13:07
Speaker
space, beverage space are made by a third party. So with that comes risk, learning their processes. And now we have four SKUs and we've made enhancements to every single one. We're always looking to improve the
00:13:28
Speaker
wrong ingredients and nutritional profiles. So we're always a work in progress. I'm a perfectionist. And I think, you know, you don't want to change things too much and veer from like your core focus by, for example,
00:13:47
Speaker
grapefruit when we added elderflower and added that botanical, we saw cells for that flavor almost double the growth rate doubled. So that was very clear to me that the consumer is looking for more complex and exciting ingredient profiles. And what you see in the alcohol business,
00:14:14
Speaker
off-premise, which is like retail chains, like that's what we call off-prem. Those trends follow the on-prem trends of like what bartenders are making in restaurants and bars, like what's on the menus. So I would have never known that in the beginning though.
00:14:36
Speaker
Interesting. Yeah. I mean, everything's got a journey. I think about that with fashion a lot as well. Like we know that something can be on a Friesian runway and then two years later it finds its way to H&M, right? So that kind of makes sense. Okay. Well, branding is my jam. I have a PR branding background and obviously you all are nailing it. So let's talk a little bit about that as well. Tell to me about what was your experience like? Cause this was your first physical product, right? So
00:15:04
Speaker
building a brand from scratch takes a vision. Obviously it takes a lot of work. What would you say was like your process, maybe your favorite part of the experience, maybe the part that you learned the most. Yes. So I, um, you know, with milk bar, when I owned my salon, we did have like,
00:15:23
Speaker
a couple in-house lotions, sugar scrubs, and obviously what sold well was because of what was in the product. The sugar scrub has been rebranded, but it's still the same ingredients as they were when I developed the recipe. Packaging is so important. Packaging is what sells the product. Unless you are AB in Bev, which is Anheuser-Busch, or
00:15:52
Speaker
Coca-Cola, you're not going to have the ad spend, the marketing dollars that these big brands do where they, where it's a household name. So your packaging has to stand out. And one thing that I noticed, especially with alcohol, and you'll notice this now as well, if you don't know this already.
00:16:13
Speaker
When you look at, you know, like let's say truly or white claw, all of the cans look the same. And there's just very discreet differences between the different flavor profiles. If that works, I hate it. It's like, I want stuff to look different and pretty like we wanted to have packaging
00:16:41
Speaker
that reflected not just the flavor profile, but also was easy to decipher. If you are at a party and you open up a cooler, the worst thing, especially if you've just gotten your nails done, is to dig through all that ice to find your favorite flavor. You should be able to identify that immediately from the can.
00:17:05
Speaker
Also, the can colors are inspired by Rainbow Row. We all know Charleston's very inspiring. And that also leaves room for a couple more colors. Just saying. Spoiler alert. Spoiler alert.
00:17:23
Speaker
And also, I think two things really, I wanted the logo to be big enough and obvious that if somebody took a picture from far away, that it was identifiable. And it happens all the time. People send me a photo and be like, oh my gosh, I saw so-and-so drinking this tipsy, or is that tipsy? And you zoom in and you can tell that it is.
00:17:52
Speaker
You want your logo to be front and center and draw the consumer in. And then so many brands do their logo horizontally. I wanted ours to be vertical, so it stood out more. So a lot of thought went into the packaging. Even up to the color, this is not a white, it's a cream, so it's not quite as
00:18:20
Speaker
You know, yeah, I know. I mean, I really, I could geek out about branding till the cows come home. And, um, and we already know, especially women, um, and I'm imagining most of your customer demographic is female, but we are visually driven, right? And.
00:18:39
Speaker
They make the joke that women pick their wine bottle by how cute the wine bottle is, but it's not really a joke. When you look at the amount of money we're spending through, right? So yeah, so thinking that through is so smart. I think the other thing I really admire about what y'all have been building and doing is the community component, right? We know community building is so important for our brand in this day and age. So talk to
Achieving Success and Learning from Mistakes
00:19:02
Speaker
me a little bit about what your strategy was there and where you think you've really excelled. Absolutely.
00:19:09
Speaker
The majority of our demographic is female, although it's worth noting all of our investors are, the initial interest came from a man. It's actually five different couples. So it's women as well. But what happens, you know, the female may bring this home, at least like with a lot of my friends, the experience has been they bring it home and then
00:19:38
Speaker
the husband or brother or whomever tries it and they're like, whoa, this is really good. And that's just been, I guess, a reflection of our community, right? Like people are, I have people I know that are like,
00:19:59
Speaker
Tipsy is always in my fridge. I always have it available in my fridge. I can speak for myself. There's key items that I always have in my pantry and in my fridge.
00:20:12
Speaker
Those are like my classics, my favorites. And that's what we're trying to develop. Like we want that like solid fan base side. We know we can rely on for recurring revenue. Um, you know, a majority of our sales, if we look at our data, obviously we're always focused on capturing new retailers, new clientele, but
00:20:36
Speaker
We want to look at the retailers that are really performing and are, you know, feel like a connection with our brand and really make sure that we're like massaging those relationships and understanding like how to work best with them and within their community as well. Yeah. So.
00:20:57
Speaker
And I really think we reach across all ages. We don't want to be pigeonholed into like one age group. Having healthy choices is for everyone, right? Of all demographics, obviously with alcohol 21 and up, please.
00:21:16
Speaker
You know, we want to reach and that's really like goes into like where our price point is. That was another mistake made early on also because our runs were so small. So we had to charge a certain amount, like even break even 96% of wine bottles sold in this country are below $15 a bottle. And you know, we want to appeal to the average consumer.
00:21:46
Speaker
Um, I'll never forget Harris teeter is one of our big retailers are owned by Kroger and one of the employees, um, one of the cashiers that I know just from like being in that store and. You know, working with them when we got our price below $15 for a four pack. Um, and a four pack equals over a bottle of wine, as far as alcohol content, she walked up to me so excited and she was like,
00:22:15
Speaker
I feel like I can afford this now on the regular with like, I'm feeling guilty about it. That like everyone should have access to a premium product that they really love and still feels like a treat. Yeah.
00:22:30
Speaker
for sure, for sure.
Reflections on Corporate Lessons and Entrepreneurship
00:22:32
Speaker
Anything else you feel like you've done really well, like from a marketing perspective, like what was your, do you feel like, do you feel like Instagram is how you've opened some doors? Do you feel like your sales background is how you were able to get, for example, in Harris Teeter, you know, what was, what was some of those things that kind of feel like you really like, dang, we did that right. And then we'll talk about the things that we feel like we could have done better. Absolutely. I'm happy to talk about both because I think
00:22:57
Speaker
transparency is really important. The things we've done right, we did in the very beginning, did all of our own tastings. Most of the accounts have met me personally. Most of the sales teams with our distributors say, know me. If they don't know me, they got my cell phone number. I make myself very accessible.
00:23:27
Speaker
Some of that comes from the corporate background. Like when I was in medical device sales, like, you know, if you're not answering the phone or answering those emails, your competitor will, and somebody is always there to take your spot and take your business. Right. So I'm at the mindset, like I want to be available as a resource and you know, I carried a bag for 10 years, so I understand.
00:23:54
Speaker
going out there pounding the pavement, like we really rely heavily on our distribution channels. Without them, we can't do it. I mean, alcohol is a three tier system. That is not changing. You know, direct to consumer, there is a play there. But most people, the majority are buying their alcohol in person.
00:24:21
Speaker
Um, so that's one thing we've been really great at. Um, and we're at this point where we're with the right distribution partners. And that was certainly a journey to get there, um, and learn how to work best with them. Instagram is definitely attributed to our success, but it is not as important as it was like with my salon or with like a very
00:24:48
Speaker
um, heavily focused direct to consumer brands. Like we had our best sales month, um, last year when engagement was really low. So I don't see a direct correlation. I do think it's an important component because that's how you're communicating with distributor teams, customers, et cetera. But yeah,
00:25:15
Speaker
It's not something that we focus on deeply like every single day. Sure. Yeah. It's more along the lines of like, if someone sees this on the storefront and they want to know more and they look you up on Instagram, we want that to reflect exactly the energy, the aesthetics, the, you know, tell that story. Totally. It's got to be cohesive. And we have done a good job of that. My marketing director still runs our Instagram.
00:25:41
Speaker
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00:27:32
Speaker
Okay, so let's talk about all the hats that you wear as a founder of a beverage startup, if you will. And then how have you learned maybe even to prioritize and manage all of those hats? It has been really hard. When I started my prior business, I was able, because when you have a brick and mortar,
00:27:59
Speaker
especially service-based once you've made the initial investment, you're just trying to hit that ROI and it's a bit more straightforward. Beverage and CPG is completely different. You
00:28:17
Speaker
have a huge capital investment upfront. These are big order runs. And then you're trying to figure out how do I sell through all this inventory? And then how do I manage compliance, regulatory tastings, events? Like there's only up until last June, it was just me. And then some 1099 help from some wonderful people
00:28:46
Speaker
some of which at some points I think they were just like, we feel bad for you. So we're going to come help you. And I've been lucky to have like really good loyal contractors that like, they care about me, they care about the brand. They feel, you know, an allegiance to the brand and that's really important. Um, I also in turn make them feel valued.
00:29:12
Speaker
And, you know, it's got to be a symbiotic relationship, but I mean, wearing all the hats, like up until June, I was still working six days a week. It was exceptionally difficult. I think I mentioned to you, my husband and I flip houses. So we move every two to two and a half years. I'm doing a lot of the project management for that. So,
00:29:41
Speaker
It's a lot to balance. Yeah, it's a lot. Let's do first your biggest win and then let's talk about some of the lessons. But if you had to reflect from 2020, I guess till now, what do you think is your biggest win with tipsy so far?
00:29:55
Speaker
So our biggest win was getting planagrammed for Whole Foods nationally. Um, a phased rollout. It was something we did not expect. I got like a mass email communication and I was like, we're probably not on this list. This has to be a mistake. And then, you know, I deciphered all the information, digested it, talked to our brand manager at R and DC. And she was like,
00:30:23
Speaker
Holy shit. Like she's like, I can't believe this. Like this does not happen. And obviously that was an amazing win. Um, we're still trying to figure out how to execute that right now. We're only with whole foods in North Carolina, Georgia and South Carolina, not because of whole foods, but because we've got to find distribution in the other markets and
00:30:51
Speaker
You know, being with a distributor, like once you sign those agreements in many States, it's a franchise agreement and you're locked in and you've got to make sure it's like a marriage. Like you've got to date first, like have some conversations, not just like go into it because it seems like it's a good fit on paper.
00:31:15
Speaker
Right. And that's like really our biggest challenge right now and distribution, um, has changed a lot. You know, it used to be more friendly to the small players, um, really since COVID it is hard for smaller and emerging brands to get on with big distributors. And you have to be with the big distributor if you're doing a national rollout. Yeah.
00:31:41
Speaker
I had a friend who had a brewery back in New Orleans, Louisiana, and I remember he was, I don't remember the exact details, but what I do remember is learning through
00:31:52
Speaker
that, that, that friendship that I was like, wow, it is so much more complicated than I thought. And I remember him talking to me about shelf space and shelf location and getting an eye level and, you know, moving up the, the, from the ground up. And I was like, no, I've never thought about it. But now when I go into the grocery store and I see the smaller brands at the top and at the bottom, and then the teams we know and recognize,
00:32:14
Speaker
like the Kellogg's of cereal boxes or whatever, right? Right there at eye level. So I can only imagine how hard it is. I know it's not easy.
00:32:23
Speaker
It's not. And there are ways around it. I mean, having really awesome displays. So we've gone through four iterations now of displays and we finally got it right. Like when we launched our displays were too big, they were too heavy. The retailers couldn't move them around to like mop and sweep.
00:32:48
Speaker
Now they take up literally like one square foot. They don't go past like average eye high, eye level. There's a lot of science that goes into all of it. And, you know, every little thing matters when it comes to how your item is displayed and where it is in the store. I would say at least
00:33:16
Speaker
a few times a week, we get DMS or emails like, are y'all not carried at this? You know, it's on your store finder, but I couldn't find it and it's because it got moved or the inventory's up high and they haven't filled in from back stock. So yeah, you know, the merchandising piece is also a challenge. Yeah. It's high touch.
00:33:42
Speaker
Yeah, for sure. Yeah. You can't just be like, Oh, I got a distributor. My job is done. It's like, no, it's more complicated than that. That's when you're just getting the work started. So talk to me about what you, what you would say were maybe like two or three of your biggest lessons you've learned on this journey. Sure. So one thing I wish we had done from the very beginning is connect with
00:34:10
Speaker
And we learned this very quickly and it's easy to pivot when you're a small brand and a small team is to look at who the co-packers and distributors are using because who manufactures your product and who distributes your product determines your success.
00:34:29
Speaker
You can be the hardest working, best sales person, most connected person, famous person in the world. If you have bad product that spoils or has some type of defect, people aren't going to rebuy it. They're not going to give second chances. And if you have a bad distributor, that's not
00:34:54
Speaker
getting your product in the right retailers, that's problematic. So one thing we learned very quickly was that the co-packers vet the distributors ask for referrals. If they won't get them to you, that's not a good sign.
00:35:11
Speaker
Go find the references yourself because maybe it is a timing issue or, you know, a non-disclosure. But what I, what I do, I look at who they're following on social media, who's following them. I want unbiased references and I'm always respectful of people's time. If I'm talking to another brand owner, um, I always say like, can I just have 15 minutes, please? Here's what I would like to ask you.
00:35:40
Speaker
I will keep everything in confidence, boom, boom, boom, boom, boom. Cause I get a lot of emails that are like, Hey, I'm thinking about starting a beverage business and they don't even have the name or like alcohol base. And like, there's nothing more annoying to me than ambiguity, like, and not being respectful of people's time. So.
00:36:02
Speaker
Do your due diligence, then, is what I'm hearing. Yes. Do your due diligence. And that crosses over into every single market. Obviously, I'm a business coach. I hear from a lot of people who have had bad experiences with a business coach, and I always say to people, you can find all of my clients. If you go through my Instagram account, you can go onto my website. You can find a list of all my clients. Message them. Leave me out of it. I love that.
00:36:27
Speaker
Yeah. Um, because that's where you're going to really, you know, hear what you need to hear or, you know, either way, what you're going to hear, what you need to hear, but yeah, do your due diligence. I think it's so easy in this day and age for us to just think we can just Google it. We can just find it on the internet. Totally. And that's just not true. It said the human connection matters and it matters. Yeah. Arguably even more. Cause there's a lot of fluff out there.
00:36:54
Speaker
And, you know, across all industries and all, you know, channels and media. And, you know, you've got to like cut through the BS and figure out like how to make your business work. And it's not always easy. I mean, we've co-packed in Las Vegas, we've co-packed in New York.
00:37:19
Speaker
We've co-packed in Tennessee. I found also that it's so important and critical. Another lesson is to be present and be there. I'm at every order run.
00:37:33
Speaker
The one run that I was not at was a disaster and you know, people are going to be on their best behavior when you're present. And unfortunately that's just human nature. It's not how I operate. I mean, but you know, there's a lot more accountability when you're present and you're observing what's happening. Yeah. No one is going to care about your product more than you period. The end. Yep.
00:38:03
Speaker
You know, absolutely. I remember, so I used to have a handbag line. I don't know if you know that about me, but for five years and my manufacturer was in New Jersey. And I'll never forget. I was always there. I was always present. And if I wasn't present, they would send me videos and photos right from the, you know, assembly line. Like here's our first one. Does it look good? Okay. Yeah. Keep going. And there was one particular run and we were in the height of our busy season because I, I put most of my revenue was made off of
00:38:32
Speaker
creating NFL regulated NFL approved handbags. So I was the first on the market with NFL. So what was the name of this company? Flying Fox. Okay. And, um, and so anyway, the four, it was like the height of the season. It was like thousands of bags, just turning them out, you know, just needing to get them in our hands to restock all of our stockists. And I was at a town and the head of
00:38:57
Speaker
manufacturing facility, my lead designer was also going to be out of town. He was like, no worries, because the second girl in command who I loved and adored, you know, was going to be in control. And I was like, okay, no problem. And it was the only run of handbags I ever had that were flawed. And we started getting emails of a strap breaking in this one particular spot over and over again at this one particular closure
00:39:22
Speaker
leather strap breaking, breaking, breaking. And I was like, Oh my gosh, that was the most stressful time of my life. We lost so much money and just so much time, like customer service centric and be like, don't worry, we're going to send you a new one. We're going to send you a new one. We're going to send you a new one. And I remember looking back and being like the one time. Yeah, it's, it's crazy how, you know, people think that manufacturing is so automated and
00:39:51
Speaker
you know, so controlled and it's not like, and I think that's a good thing. I mean, we need the human element and we need the human touch. Like we can't have everything be controlled by AI and robots.
00:40:08
Speaker
machines. But you know, with that being said, there's also room for human error. And honestly, sometimes not just error, because a lot of error is just an honest mistake. But there's also gross negligence. And I'm very thankful that we have several attorneys that are investors. And we've got a chief administrative officer now, who was our first seed investor.
00:40:38
Speaker
And we still have outside counsel that represents us when necessary, but it's definitely brought a different level of sophistication to how we look at contracts, how we negotiate contracts, how we deal with our vendors. And, you know, unfortunately, that's just a part of doing business. Yeah. If it was cookie cutter, easy, and everyone knew exactly how to do it. We say this all the time.
00:41:07
Speaker
everyone would just have these like ridiculously successful businesses.
00:41:12
Speaker
It's not that simple. Yeah, but we're easy. Everyone would do it. You do it. I think everyone wants an alcohol brand. At least every celebrity does. Everyone. Yeah. Oh my God. Yes. In the end in Nashville, they all want a bar and they're all getting one on Broadway. Yes. I've been in, been in those bars many a times. Yeah. So what would you say since you and I both have had the corporate experience and the entrepreneurial experience and you've had it in multiple facets like me,
00:41:38
Speaker
What do you think is your, you know, what is your, what do you love most about being an entrepreneur? I mean, I do love the freedom and knowing that much of my success rides on my input, you know, and of course there's chances that, you know, it's not going to work out or we may not hit our targets when we want to, but
00:42:07
Speaker
I'm a big believer in, you know, not having a scarcity mindset, but a mindset of abundance, because when you have that mindset, it's a lot easier to start your day and focus on the positives and like have the mindset of
00:42:29
Speaker
here's what we're doing right. Here's like all of our wins. We have a weekly drill down internally. We have a monthly drill down. We've got a fractional COO now, which has been an absolute game changer. He is amazing. Um, and that's what we really focus on. And that's what I love.
00:42:51
Speaker
Um, do I miss like the stability of my corporate career sometimes? Absolutely. I mean, I cleaned out a lot of my 401k funding this business and you know, that was a buildup of 10 years of really hard work. So, you know, when people say like, Oh, you're so lucky or
00:43:15
Speaker
You know, you're crushing it, which it's meant to be a compliment, but sometimes I like cringe internally because I'm like, this is not luck.
00:43:25
Speaker
Right. This is manufactured success. And, you know, just cause you're seeing us on the shelves everywhere, they're not seeing, you know, what's going on behind the scenes, like the struggle it takes for a business. It's this capital intensive. It takes quite some time to get profitable. And truthfully, I still do not pay myself. And that is a choice. Um, it's a fiscally responsible choice.
00:43:54
Speaker
And thankfully I can, you know, I'm in a financial situation where I can afford to do that because my significant other was hearing a lot of that burden. And, you know, it's, it's, and it's also a big reason why my investors believe in and invested in the company. They saw the data, they see the opportunity and they see how much I've put in myself.
00:44:25
Speaker
Right. This is not, you know, money that's been handed to us to go start a company. I don't discount anyone that does that. I think that's great. But, you know, I am all in. I have not
00:44:44
Speaker
taken on outside investment and just started this brand. This was a lot of financial risk and a lot of sleepless nights. Yeah. So I think, you know, a lot of people aren't prepared for that. I thought I was, and then really getting in like milk bar. I hit my ROI in 14 months. I was paying myself within 14 months.
00:45:10
Speaker
and paying employees really well and an incredible manager. This is just a different ballgame. I mean, when you're competing with Gallo constellation, AB in Bev, which is Anheuser, I mean, it's no joke. So you've got to like really be ready to roll up your sleeves and have a lot of grit. Do the work and have a lot of grit. I was going to say, what do you think is like,
00:45:35
Speaker
the thing that helps you the most as far as like a personal, a personal attribution, if you will, like, um, I would say, I mean, just perseverance, like there are days, I mean, going back to manufacturing, we had an order run last year where we moved to a new vendor. I won't say for which part of the product, but new vendor, they open up the truck and
00:46:05
Speaker
stuff is spilled everywhere. And with these order runs, your co-packer doesn't cover that. Your freight company does not, if every piece does not fall into place, if your cans are not there, your juice is not good, your wine is not arriving on time, then you're, you're going to have major losses on that order run.
00:46:31
Speaker
And a lot of people I think would like throw in the towel and be like, okay, I'm done. I've had enough, but you know, every good entrepreneur knows sad.
00:46:45
Speaker
It won't, it's not a first and it's not a last either. This happens to big brands as well. Um, it hurts a little more as a small brand, obviously it hurts the pockets, but you've just gotta be okay with pushing through and knowing that like that is not going to break you. And you've also, it's not just the perseverance, but
00:47:13
Speaker
being really financially prepared. Like I think a lot of entrepreneurs get in the position where, you know, all of a sudden they're like bankrupt or they're like having to sell a house or sell all of their possessions. Like I think it's so important to be really realistic and
00:47:38
Speaker
financially savvy with your brand, with your company. And that's why I always caution people when they say like, Oh, I want to go start this. I'm not discouraging anyone from pursuing their dreams, but
00:47:54
Speaker
You have to be so calculated and so prepared because everything that you think could go wrong, like 3X that. Yeah. 100%. And yeah, I mean, I can't echo that enough. If you're listening, like know your numbers and not just know them, but get really comfortable with your numbers.
00:48:20
Speaker
breaks my heart when I see these really successful businesses. And we've seen a lot of it in the last year. I think we're coming off of the COVID, what is the word I'm looking for when you're just riding the wave into the shore, right? We're coming off of where people's money, I guess, was drying up. And I see these really big brands who had wait lists for their products and really look like they were moving and shaking. And then all of a sudden, like that, they're like, we have to close our doors immediately.
00:48:49
Speaker
And I'm like, how did you get to the point where you didn't know that your buffer was running out and run a big time sale or do, you know, do what you can cut, cut some people off your team as hard as that is. But like, when you're in charge of the business, you've got to have an eye on those numbers at any given time. Right. And I know evaluations going from a hundred million to like eight million. Wow.
00:49:16
Speaker
That's a big debt. That's a big tip. We do not like that number. No, nobody wants to hear that, but I think that's, you see that happening when people are really comfortable spending other people's money. And, you know, I am like truly a, we started out self-funded and it was that way up until last year because of certain circumstances and dynamics.
00:49:46
Speaker
We couldn't do a raise until last year. And I'm actually really glad it worked out that way because it forced me to understand literally every aspect of my business. I can do an order run from start to finish, down to the gram of what I need to order. I can do a P&L. I can run my balance sheets. I don't prefer to. I don't like that part of the business.
00:50:11
Speaker
social media, I can handle, I can handle, you've got to be able to, yeah, I'm not saying you have to be an expert in every arena, but like, if you don't intimately understand your business, those are also the people that get taken advantage of because they bring in external resources. Not that that has not happened to us. Like we've certainly had, but I'm able to like see it and pinpoint it very quickly. And, and
00:50:39
Speaker
have a level of accountability. So I'm glad that while the path has been hard, I really understand so much about my business. And I think there's a lot of people that don't, and that's when the business gets away from them.
00:50:58
Speaker
So to piggyback on that, because I think it's a nice dichotomy to talk about with you before we before we wrap up, like, so we're saying yes, know your numbers, know your business inside and out, have perseverance and grit and all of these things. But also, obviously, you've chatted already about like, believing in manifestation and positive mindsets. And so how do you think because and you're also in a very male dominated industry, for sure, large,
00:51:24
Speaker
So how do you think your feminine, your feminine energy and beliefs and what you bring to the table intuitively has served you with the growth of tipsy? Well, I'm a work in progress on my feminine energy. I don't know if you followed Jenna Cavallo, but she started a brand called Agent Nature. It's one of the most successful skin gear lines. Like she's a badass. She's someone I admire.
00:51:52
Speaker
And I've heard her talk a lot about that and really leaning into that feminine energy. And I'm like, I need to like feverishly be taking notes on all of this.
00:52:04
Speaker
I have such an alpha personality. I played sports. I'm highly competitive. I like winning and not at the expense of others. I'm very, very much also like a rising tide lifts all boats. I'm close friends with other wine based brands and spirit RTDs, but
00:52:28
Speaker
At the end of the day, I mean, I do want to win. And sometimes I think, you know, like you said, this is a male dominated industry, which I'm, I'm used to. I mean, when I was in medical device sales, one company, I was the first female sales rep on like the Eastern half of the US. So it's, it's something I feel comfortable with, but I do think
00:52:54
Speaker
Like I'm very direct, I'm very assertive, which is not like a lot of Southern women, and I'm from the South, you can't tell from my accent, and I think it throws some men off, like they're expecting like
00:53:11
Speaker
Yeah, yeah. You're this sweet little southern girl and I can be pretty fiery and you know I have had to learn also how to reel that in like I like draft an email reply and then I'm like let me self set on this for like cool off reread it and make sure that my tone is not being misperceived and
00:53:40
Speaker
You know, it's a balance. Like I definitely think I've leaned into that more since having children though. And I have two little girls and they're like as girly girls, it gets horns, rainbows, all the things. I love it. Okay. Well, tell us what's next for tipsy. What is your next on your horizon? What do we have?
00:54:04
Speaker
What should we be kind of keeping our eye out for? Sure. So when the past couple of years, we've really just been hyper focused on South Carolina and mastering our accounts, our relationships close to home, open Tennessee. They've been a great state for us, obviously Nashville.
00:54:26
Speaker
Um, and I think we maybe met through Sydney and by the way, I think I was thinking about this. I was trying to remember that as well. And so what's on the horizon, we just signed a partnership deal with empire, um, to distribute in North Carolina and Georgia. They are a Berkshire Hathaway company. That was a very strategic moon for us. They're going to be incredible partners.
00:54:53
Speaker
I'm a big Warren Buffett fan, so that was very exciting for me as a brand owner. Then we're launching Colorado. I'm actually going to be out there all next week. Exciting. I'm planogrammed for natural grocers, which is
00:55:14
Speaker
like a Whole Foods, but even a little more crunchy. Like you don't even have to read labels, Sarah, because they hate the amount of paperwork I had to submit just to be considered for them was
00:55:27
Speaker
exhausting, but also quite impressive. So that we've got that in play. And then, you know, we'd love to be in target. We're having very early conversations there. Um, I shouldn't say early. We've been talking to them for quite some time, but our packaging and brand screens target working on fresh market. Um, and we've got some other,
00:55:53
Speaker
retailers and play and states that we're looking to open up. We're going to make one flavor enhancement later this spring. So I can't announce it yet, but I can tell you it's going to be the most exciting one yet.
00:56:10
Speaker
Okay, guys, it is a drink that is extremely popular in Europe. It's something that's just synonymous with our ideas. Okay. And it's something that's missing in the canned RTD space right now.
00:56:26
Speaker
Really nobody doing it. So that's exciting. Um, we're also looking at non-alcohol we get asked So much like I've got a lot of friends who are sober or sober curious Which as much as I joked about dry January like I respect that I think it's absolutely if that's a decision someone's made great for them and we need to be
00:56:53
Speaker
you know, considering that space it's growing. Yeah. Really like more than analysts even expected it to. Yeah. Okay. Okay. So we're all going to go follow tipsy. Um, tell us where we can find you and I'll put it in the show notes as well. Awesome. So I would just encourage your, um, listeners to go to our website, drink tipsy.com.
00:57:20
Speaker
our store locator, it is accurate. There may be a level of give or take a few stores that are not accurately reflected on there. We try to update it every few weeks. I always encourage people, if you can't find it in the store, ask. Yes. Because stuff does get moved around. I think retailers do that on purpose to keep you in there longer. On your toes.
00:57:47
Speaker
Looking around, see what else she puts in the bag. Yeah. And then you're like leaving, you know, Target, for example, you go in for like, you know, a bottle of wine and some espresso and I'm all of a sudden I've got pillows and like, yeah.
00:58:04
Speaker
So yeah, and I encourage people to reach out. I'm very accessible. You can find me on LinkedIn. You can just search for me on Instagram. Find me there under my design handle, which is atlanticodesignco.com. Probably need to change that to my name.
00:58:22
Speaker
Well, thank you, Katie. It was such a fun here. Cheers. Cheers. Got it. Always. And if I ever walk past it in the shelf, I'll do the little positioning for you. Um, but such a fun combo and it's just fun to have the, such a diverse, um, you know, type of, of person on the podcast, like service-based entrepreneur, product-based entrepreneur, and in the beverage world, it's just such a unique, unique thing. So thank you for being so open and sharing so much with us.
00:58:52
Speaker
Absolutely. Thank you so much, Tiffany, and have a great evening. Enjoy the rest of your tipsy. Thank you, I will. I'm going to Galentine, so I'll just take it with me. All right, I'll see you soon.