With backyards, pool parties and terraces quickly becoming the social distancing ‘place to be’ apex, outdoor entertaining is taking on a whole new importance. Novel spirits brand, Onda, just might be tapping into the zeitgeist of our times with their newly released canned sparkling tequila. It could quickly turn out to be the drink of summer 2020.
If you find this surprising, the statistics tell an interesting story of a new convergence in the beverage industry. Sitting at the intersection of four of the fastest-growing categories in the alcohol industry, Onda taps into the key trends of FMBs/seltzers together accounting for 10.3% of beer sales; the dramatic spike in canned cocktails sales during COVID-19; tequila as the fastest-growing spirits segment in the U.S. (which is up more than 75% nationally); and e-commerce: DTC sales at an all-time high, according to Nielsen, with online alcohol sales gaining +441% and +387% for the first two weeks of April.
Why now? With a distinctive ‘90’s surf style, hot orange branding that reflects a summer as a “state of mind” attitude, the Onda co-founders including Kelli Adams, Chief Creative Officer, and actress and entrepreneur Shay Mitchell, Chief Brand Office, Noah Gray, CEO, and Max Dworin COO, came up with the idea this past year after observing many of their friends were drinking hard seltzers made with mystery alcohol and cheap ingredients.
As Adams explained, the team’s “favorite drink is tequila soda, and we wanted to create a premium, pre-mixed, ready-to-drink option that’s light and refreshing enough for all-day occasions, like beach hangs, pool parties and backyard BBQs.”
The obsession led to a shared a joint vision to elevate the ready-to-drink alcohol space with a new take on their favorite drink.” They also “wanted a product that was meant for a healthier, balanced lifestyle.”
While there are other canned tequilas out there, the main differentiator between Onda and its competitors, according to Adams and Mitchell, is “its emphasis on using only high-quality ingredients including real legit juice whereas other canned beverages on the market use a mystery alcohol base that tends to be a neutral malt liquor.”
The visual identiy was also a major factor in the developement process as Adams and Mitchell worked together to create a visual identity largely inspired by the surf style of the 90s reimagined for the 2020s. To heighten the nostolgia, they also subliminally added the elements of “fashion and brands that have long united Pacific Coast travelers, chasing sun and waves, from LA to Puerto Escondido.”
This also had to translate into a product formulation that would appeal to a highly health conscious women’s market. The end result is a sparkling tequila with a 5% ABV, 100 calories, and zero sugars and carbs. After all, how many of us ask about calories, carbs and sugars before we indulge? I know I do.
But launching a new brand is never simple. Things became more complex just as the brand was about to debut. The founders originally wanted to focus on retail, with in-person tastings and parties to celebrate summer 2020, but COVID-19 forced the company to pivot to a digital-first strategy.
It’s a move that paid off. Months later on July 1st, with just two flavors and a “Double Trouble” lime and grapefruit pack, Onda completely sold out and just restocked. With the economy now slowly reopening, in addition to D2C, Onda has also added a select retail presence in New York City.
When asked what helped Adams get through the challenges especially in the male dominated beverage industry, she revelaed that “when we started Onda, I noticed there were not many women leaders in the alcohol industry to look up to, so it felt really supportive to have another female co-founder by my side. With Shay, since our aesthetics and creative vision for Onda are very similar, it’s been easy to collaborate on everything from packaging to apparel.”
Finally, if your about about to embark on your own entrepreneurial journey, Adams advised, “Even in a highly competitive space like the alcohol industry, we’ve been so fortunate to receive mentorship, friendship, and support from other entrepreneurs that we’ve met. What I’ve learned through this process is that the surest way to succeed is by building a community around yourself (and not to overly focus on competition).” Cheers to that.