In this ongoing series, we're sharing tips, advice, and insights from real entrepreneurs who are out there doing business battle on a daily basis. (Responses have been edited and condensed for clarity.)
Karl Ziegler is the co-founder and CEO of Roseade Spritzer which launched in 2021. “I wear a lot of hats, but in a nutshell, I oversee sales, manufacturing, marketing and finance,” Ziegler told Entrepreneur. Read on to get his advice for entrepreneurs in the alcohol space and learn how his company became a rising star in the explosive Ready To Drink category.
Give us the elevator pitch for your business.
Roseade is a rosé wine and lemonade drink made in California with all-natural ingredients. It's 8% ABV and is introducing wine to Gen Z in a fun and delicious way. Led by Lenny the Lemon, our smiling lemon logo, we are taking the industry by storm.
Credit: Roseade
What inspired you to start?
Honestly, I was tired of working for people who didn't move fast enough or who made poor branding decisions. It was enough to launch “entry closes” – products that I knew were destined to fail and would have to be sold (usually by me) at a significant discount to get them off the ground. I'm not sure I had an “aha” moment, but I definitely knew I wanted to do my own thing at some point. I always had it in the back of my head, “You'll know it when you see it.”
How is it different from other canned alcoholic beverages?
The Roseade Spritzer is unique from other canned ready-to-drink beverages in several ways. The most obvious difference is in the flavor profile. There are many sugar sweet RTDs on the market and the Roseade Spritzer is different. It's more tart than sweet with really nice bright acidity. It's refreshing and consumers like being able to drink several times in one sitting without tiring the palate. We were one of the first wine-based spritzers to hit the market in 2021 since the heyday of wine coolers in the 80s. We are now one of the category leaders. What also sets us apart is that we are made from 100% all-natural ingredients with premium rosé wine, real sugar and real fruit juice. Customers are always pleasantly surprised to hear that we are naturally low in calories, sugar and gluten free.
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What are the biggest challenges in this industry?
The RTD sector of the wine and spirits industry is hyper-competitive right now as it is the fastest growing worldwide. Standing out in the crowd is the hardest aspect, especially as a startup when you're not funded like we were until this spring's successful raise. This is what makes us so proud of the success we have had to date.
Please explain the logo, how it came about and how important it is to the brand.
Lenny the Lemon was created by our co-founder Lee Smallman and our graphic designer Jack Meirs. Lee started following my Instagram account in 2018, and that's where I first saw the logo. As soon as I saw that cheeky little smile and those dope sunglasses I was intrigued, not even knowing what the product was. As soon as I found out it was a rosé wine and lemonade sprinkler in Australia, I immediately DM-ed Lee and made a phone call and we got together. Consumers are immediately drawn to our brand and want to learn more about it. Our brand is what grabs them and the taste is what keeps them. We are starting to invest in line extensions and telling the brand story – promoting Lenny the Lemon is key.
Can you talk about the death of your co-founder Lee and the emotional toll it took on you and the business?
It's never easy to talk about it. When Lee and I decided to move forward together and import Roseade cans to the US market in 2020, we talked almost every day for hours. We discussed many details of the company and how we would run it together – him in Oz and me here in California. During this time, we became extremely close friends, like brothers indeed. Lee had completed a dozen or so successful productions in Australia. Lee was always on point, not missing a single detail. However, when we tried to produce the Roseade Spritzer in CA for the first time, mistakes were made and we ended up losing the entire production run of 50,000 cans. It was at this time that Lee discovered he had a cancerous brain tumor. To say I was devastated would be an understatement. I just lost my self-funded production and now I was going to lose my business partner and friend. I thought we were done as a company. I think a lot of people would probably have turned away at this point. In my case, I dug deep and decided that I would fight to keep the brand until I was completely out of options. I knew consumers loved the brand and wanting to keep Lee's legacy alive fueled me through some very difficult times. Lee fought the good fight and lived about 18 months after diagnosis, 12 longer than doctors gave him. Fortunately, we were finally able to meet in person in October 2022, about a year before he died.
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What keeps you energized and motivated?
I've always been a fairly motivated individual professionally, but honoring Lee's memory by making the brand successful is a major motivator. My wife and son always inspire me to achieve greatness so that I can make them proud. Now, of course, I want to be successful, make our investors money in this venture and hopefully in other ventures in the future.
What advice would you give to entrepreneurs looking for funding?
Being a career sales and marketing professional in the wine and spirits industry, I had the knowledge of how to grow a brand. What I didn't have before starting Roseade USA was any fundraising experience. We were able to raise a small amount from friends and family prior to the launch and invested approximately the same amount through our wine and spirits company, Concurrent Wine & Spirits. When we lost the first conservation contest, which was self-funded by lines of credit, we had to raise money to survive. We were basically constantly trying to raise from April 2022 until we closed our last round on May 15, 2024. My wife and third co-founder, Victoria Ash, was extremely important in helping us find our way through the maze of VC- ve, family, office, angel investors, etc. Without Victoria spending her nights and weekends networking and doing LinkedIn research to identify potential strategies and investors, we would never have made it.
What is your advice on how to prepare for a pitch?
Oh, the desk… the bane of my existence for the past 2 years. I swear we've had 500 different versions of the deck since 2022. Everyone thinks they have the secret recipe for a successful pitch deck. Take their recommendations with a grain of salt. No one knows your brand better than you. You need to be comfortable with the deck material and understand it inside and out. Less is more! This took us forever to figure out. Main line information is all that is needed in advance. Make sure you have professional help with the design, it makes a big difference to the first impression. Know your numbers and remember that you are the expert in your brand and category. Be confident but not cocky and show them a path to success. Have a clearly defined opening and closing date for funding rounds and stick to it. It can help create a sense of urgency in potential investors. If we could go back in time, we would have raised a lot more money in the beginning, before we got out. After you've been in the market for a few years, you better be successful in sales, otherwise you're going to have a tough time.
What is something that many aspiring business owners think they need that they really don't?
This may sound crazy, but I don't think you should spend too much time on a business plan before you get started. Create a framework that you can use to stay on track and then be nimble enough to adapt on the fly. As Mike Tyson said, “Everybody has a plan until they get punched in the mouth.” I think the ability to think on your feet, react to changing market conditions and use your gut instincts are much more valuable to your business than a comprehensive plan that took 12 months to prepare. Don't stray too far from your lane when starting a new venture. I had years of industry experience before starting my two companies, so while there were new challenges, I have a core understanding of what we're trying to do. Realize that failures and mistakes are how you improve and do better next time.
What is your ultimate goal with this brand?
By the end of the first six months of 2024, we have already exceeded our sales from the previous FY and are on track to achieve our revenue target for the year. We are very excited to release our first line extension in August, Pineapple Roseade! We opened two new states this year – Idaho and Arizona – and both have exceeded expectations. As I always say about Roseade, it's simply a better day drink!