Thursday, November 21, 2024

Pluboard Interview: Tipsy Lady “open to Africa partnerships”

African-American entrepreneur Toni Gilliard speaks about the growth of her business and the prospects of going global, including to Africa.

Tipsy Lady, a fast-growing brand in the ready-to-drink (RTD) spirits market, is setting its sights on further expansion, including going global with potential partnerships with distributors in Africa.

Following two strategic partnerships last October, founder and CEO of the U.S. based company, Toni Gilliard outlines the company’s next steps: nationwide U.S. distribution and international growth.

“We anticipate significant growth in the ready-to-drink spirits market as consumers worldwide seek direct engagement with culturally curated brands,” says Gilliard.

In 2019, Gilliard, drawing inspiration from her Caribbean heritage, took a cherished family recipe for Rum Punch – a classic Caribbean drink – and turned it into a business venture. Years of perfecting the recipe, coupled with encouragement from family members to share it with the world, planted the seed for Tipsy Lady.

Gilliard describes feeling a powerful ancestral connection and hearing a whisper urging her to build a legacy during a trip to Barbados.

“On that journey, it was very clear to me that I should be doing something different with my life, particularly for the next phase of my life. It was a spirit-led message. It was a not planned trip,” she told Pluboard.

“I would say, it was gifted to me by my ancestors and spirit for me to figure out how to formulate the Rum Punch in particular, and how to commercialize it into something. It’s like a family reunion for me. My family would tell me for years that I needed to ‘put it in a bottle’ because they enjoyed it so much. So, that’s pretty much how the business started with me tapping into my culture and digging a little deeper and commercializing what I had been making for nearly two decades, bringing it the masses.”

She created organic cocktails and island-inspired flavours like Rum Punch, Sunrise Mango Mimosa, and Mojito, offerings that are available online and in select states across the U.S.

Toni Gilliard, founder and CEO of Tipsy Lady. Credit: Afrotech

Blind tasting

Within its first year, Tipsy Lady’s Rum Punch won gold at the San Francisco World Spirits Competition, standing out after a blind tasting of over 1500 competitors. This early recognition and press mention fuelled distribution deals in eight U.S. states within two years.

Tipsy Lady later raised $100,000 funding from investors through Mainvest, a platform that allows people to invest as little as $100 in businesses. Last October, the company secured distribution deals with Sam’s Club and Total Wine and More stores in Myrtle Beach, South Carolina.

In a market brimming with ready-to-drink options, Tipsy Lady Cocktails prioritizes authenticity and quality, setting itself apart with real Jamaican rum and organic ingredients.

Gilliard aims to disrupt the beverage industry in ways that go beyond delicious cocktails, as Tipsy Lady champions cultural celebration and empowerment.

“Our mission is to inspire women founders and to celebrate and elevate Caribbean culture by developing high-quality Caribbean-inspired cocktails, wines and spirits with stereotype-free branding,” the website states.

Gilliard said one of the things she does differently is word of mouth.

“I do a lot of liquid-to-lips campaigns and what that means is that I try to get the product in the mouths of the consumers or potential consumers. I do a lot of sponsorship in kind and give out free products in markets that I would like to see our brand or markets that I have recently started doing business with like New York,” she says.

Expanding within and outside the U.S.

Tipsy Lady plans to expand its national presence and even go international, including to Africa. It is working to deal with challenges that include distribution, sales and funding to scale. The goal is to achieve at least a $100 million valuation in five years.

“Some of the challenges so far are getting national distributors to do business with us. It is not an easy affair; alcohol is super regulated. So, you literally must go state by state, unless a national distributor comes to you and says, hey we want to do business with you,” Gilliard says.

The company is in conversations with a Trinidad and Tobago firm that services at least 16 markets.

“The five-year cardinal goal for us is, of course, national distribution, as well as international distribution. In the Caribbean, Latin America, the UK and Africa, since you brought it up, whoever is ready to do business with us and see a perfect fit,” she says.

While she did not initially consider African expansion, the company is open to such partnerships, nonetheless.

Excited about the growth, we’ve looked at the Caribbean, of course, Canada and the United Kingdom (UK). But if Africa is ready to do business with us, we welcome that opportunity,” she says.

She said if there are distributors in Africa or wholesalers, who are interested in “bringing us on, we welcome the opportunity to expand to that region.”

Read the full interview below:

As a rising star in the Ready-To-Drink (RTD) premium spirits market, can you briefly tell us about yourself and your motivation for starting a business in this industry?

My name is Toni Gilliard. I am the CEO and founder of Tipsy Lady Corporation. I founded the brand in 2019. I am of Caribbean and Gullah Geechie descent. I live in Charleston, South Carolina, however raised in New York City, in a predominantly Caribbean and Latin community, in Midtown Manhattan. My roots as far as exposure to Caribbean culture comes from my grandmother, who married someone from Barbados, although my paternal side is Bermudan (my grandmother). I didn’t get to spend a lot of time with that side, but I was always connected to the Caribbean community, connected to the roots and the culture. In December 2018, I returned to Barbados after not having been there in 20 years. I studied abroad and attended the Law School there at University of the West Indies (UWI). On that journey, it was very clear to me that I should be doing something different with my life, particularly for the next phase of my life. It was a spirit-led message. It was a not planned trip. I would say, it was gifted to me by my ancestors and spirit for me to figure out how to formulate the Rum Punch in particular, and how to commercialize it into something. It’s like a family reunion for me. My family would tell me for years that I needed to “put it in a bottle” because they enjoyed it so much. So, that’s pretty much how the business started with me tapping into my culture and digging a little deeper and commercializing what I had been making for nearly two decades, bringing it the masses.

How has the journey been so far you and your team at Tipsy Lady Cocktails?

The journey has been amazing. In less than two years expanded distribution in eight states. The first distribution deal was three months after launching online, which was great in South Carolina. It has also gained momentum with a lot of organic press mentions, like Travel Noire, the Today Show, Essence Magazine, and Black Enterprise to name a few, which was a big deal. Sales increased because of it and also made space for the momentum in competing in pitch competitions with Angel investors to raise money to scale. It also attracted other investors who were interested in injecting capital. So, it’s been a great journey so far and I am looking forward to what the years will look like as we continue to gain a presence at a national level.

What are the success stories and challenges you’ve encountered in this business so far?

So far, the success I’m super proud of is that I entered the San Francisco World Spirits Competition in my first year of business with just the Rum Punch and we actually won the Gold Medal. It’s a blind tasting of over 1500 brands that have entered the competition. In blind tasting, they don’t see the packaging, they don’t know the name and we won the gold medal on flavour. So, that was a great success. We recently got the Sam’s Club contract for our local market here in South Carolina for Myrtle Beach.

We are also sold in Total Wine and More throughout the state and in select stores in Florida as well.

You asked about the challenges. Some of the challenges so far are getting national distributors to do business with us. It is not an easy affair; alcohol is super regulated. So, you literally must go state by state, unless a national distributor comes to you and says, hey we want to do business with you. Everyone wants to have their products on the shelve and in restaurants at the national level. So, that has been challenging, you literally have to go state by state to get licensing and I kind of still do it by myself. So that would be the huge challenge. Next, get more retail accounts, more buyers so that will give us more capital to expand and grow. Those are the main challenges; distribution, sales and funding to scale.

As the founder/CEO, are there things you are doing differently that have resulted in the remarkable accomplishments by your brand?

One of the things I do differently, is word of mouth, I do a lot of liquid-to-lips campaigns and what that means is that I try to get the product in the mouths of the consumers or potential consumers. I do a lot of sponsorship in kind and give out free products in markets that I would like to see our brand or markets that I have recently started doing business with like New York. So, there are events like (Angela Yee’s annual community day at the Brooklyn Barclays, the taste of Black Spirits in New York, and Charleston Wine and Food (CHSWF). This definitely has helped brand. The other thing that I do differently are Caribbean themed events. These are aimed at those who have been to the Caribbean. They feel a sense of nostalgia or those who have yet to go get excited about it. I think those are a few things that set me apart from others and making these accomplishments continue.

Can you tell us how your background in Law has helped you in tackling some of the challenges in the business?

Yes, the background alone is helpful, it helps me with reading and understanding contracts. Even when I was formulating, knowing how to draft my own non-disclosure agreements was essential to protect my intellectual property rights, trademarks as well as the negotiation skills that I possess as an attorney.  I am able to leverage those skills.

Can you share with us the qualities that set Tipsy Lady Cocktails apart from other brands in the market?

Well, in the beginning of launching we were a higher alcohol by volume (12% ABV). When we launched, most of the competitors were at 4-5% ABV, or under 7%.  Everything we formulate is 12% ABV.  We also have a smaller can size (6.8oz) then you typically would see on the market. Most have taller sleek cans. The most important thing is our niche of doing things that are only Caribbean inspired and authenticity in taste.  It does not taste like it came from a can. It doesn’t mean that we’re staying within the box. We are open to at some point to expanding our portfolio to include other flavours that are not necessarily Caribbean in nature. But what set us apart is we do have a niche market, which it is definitely Caribbean inspired. All of the ingredients are organic certified, as well as all natural ingredients. So, it’s important to me what goes in those cans.

You have previously expressed the resolve and determination of your team to position Tipsy Lady Cocktails as a global brand. Are there strategic plans to make such aspiration realizable?

Yes, some of the plans are in motion for the global reach. We started with the Caribbean when we first launched, we were in conversations with Trinidad and Tobago and that company services at least 16 markets.

In a recent press statement distributed by Blacknews.com, you said your team is eager to collaborate with national retail partners to enhance the brand’s presence, e-commerce website, and overall customer journey. Can you throw more light on this?

Yes, so for the markets and states that we’re in, we’re looking to have product placement for those retail markets, such as New York, New Jersey, Pennsylvania, South Carolina, North Carolina and more recently Georgia. The states and markets that we currently have a presence, we want retailers to make purchases, go on our website and click the distributor retail button and let us know your interests. We would love to get product in consumers hands and on your retail shelves. We welcome doing business with the smaller and midsize distributors. And as far as the national distributors are concerned, we just want them to give us a try. We understand (that canned spirits are popular and over saturated and they may have tons of inventory that they can’t sell.  We know our product is good, we know, we have a niche product and we just want to have at least a minimum buy in, just to see what we can do and how we can perform in those markets that we have yet to reach.

The Caribbean and Africans share historical and cultural affinity. Are there plans to extend your brand presence to Africa?

In full transparency, it has not been on the radar but we are open to the conversation as we do possess international licensing to be able to do business internationally. So, if you know of any distributors in Africa or wholesalers, who are interested in bringing us on, we welcome the opportunity to expand to that region. Excited about the growth, we’ve looked at the Caribbean, of course, Canada and the United Kingdom (UK). But if Africa is ready to do business with us, we welcome that opportunity.

Where do you see your brand in the next five years?

The five-year cardinal goal for us is, of course, national distribution, as well as international distribution. In the Caribbean, Latin America, the UK and Africa, since you brought it up, whoever is ready to do business with us and see a perfect fit. Most importantly, I would say, the next goal would be to get at least a 100 million valuation for the company in five years. If not sooner so that we can continue to scale and provide our consumer our product line. So, that is where I would like to see us in the next five years.

As a very busy business owner/CEO, how do you unwind?

Well, I have made it a practice that my mental health is important, so I unwind every Friday. I usually don’t take appointments, I go to the beach, sometimes for a nice walk. Friday is my day, my mental health day. So, I unwind close to the ocean as possible, where there’s stillness and quiet time.

What’s is your philosophy in life?

My philosophy in life is that no man is an island. Although I love island life, no man is an island. We will need people to help us along our journey, just in everyday life, not just business. As I’m developing and scaling the brand and expanding things with Tipsy Lady and now working on a new line of products, I definitely need support and help in getting the word out as well. I also like to rely on the everyday practice of a closed mouth does not get fed and that it is important to share with others what you’re doing without giving up your Intellectual property of course, but sharing and telling people about your business goals and what your needs are. When I was looking for funding for the business, if not for me having the conversation with many that I knew or shared information on social media that we were raising money, I would not have been able to secure over $150,000 last year in order to scale to meet the production demands on the new accounts that we have. So those would be the two philosophies that I have in life. Tell people you know, about what you’re doing, as well as no man is an island, that we need each other in order to grow.

Thank you so much for your time. This is so inspiring, I wish you and your team, the best very in your future endeavours and more resounding successes in your line of business.

I thank you so much for the opportunity, have a great rest of the day. Maybe now, you can go back to bed because it’s so early on your side.  I appreciate you. Okay, feel free to reach out if you have any other questions. Have a great day!

>> Pluboard shares business interviews from around the globe, featuring triumphs and setbacks, to help entrepreneurs learn and grow. We’d love our readers to hear your business story. Reach out through: info@pluboard.com

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