BeatBox Update: We Hit $18M Revenue In 2021
This is a follow up story for BeatBox Beverages. If you're interested in reading how they got started, published almost 5 years ago, check it out here.
Hi there! My name is Justin Fenchel and I am one of the co-founders/CEO at BeatBox Beverages. What started as a class project at the business school at the University of Texas has now become the fastest-selling Ready To Drink (RTD) alcohol product in the US!
BeatBox is an 11.1% wine-based party punch in eco-friendly, portable Tetra Pak containers. Each box is 16.9oz and tastes much more like a Gatorade and vodka than a wine. We have flavors like Blue Razzberry, Peach Punch, Fruit Punch, Pink Lemonade and more.
We sell to beer distributors across the country, who then sell to retail accounts (think Walmart, 7-11, Circle K, etc).
In our first year of business in 2013, we did $200k in total revenue. Flash forward to today and we will do $18m in revenue in 2021. The growth has been insane. In 2017 we did $1m, in 2018 it was $2m, in 2019 it was $4m, and in 2020 it was $7m. We have gone from a small team to now having over 40 full-time employees and hiring rapidly.
And yet, we are still in less than 6% of all the accounts we could be in in the US! So we have lots of room to grow much further. We want to be at a $100m revenue run rate by end of 2023.
You have to hire great people to get great results. Once we started bringing in people with industry experience things really started to turn for us.
We have been aggressively expanding into new markets in the US with our 500ml Tetra Pak. A key to that growth has been by winning in chain stores. In the alcohol industry, about 75% of the volume is sold through chains vs. mom and pop stores. So you have to be there.
In 2019 about 15% of our business was at chains, but now it’s close to 65%. We are sold in over 2,000 Circle K’s, over 1,000 Kroger and Casey’s stores, another 600 Quik Trips…
It’s growing rapidly as our Nielsen data continues to show as the fastest-selling product in single-serve wine and RTD cocktails.
Additionally, our marketing has gone viral with a collaboration with Doggface208 (the cranberry skateboard guy!) We partnered with him to launch a Cranberry Dreams flavor this year that got picked up by TMZ, Adweek, Forbes, and many more. We are reaching 10s of millions of consumers organically and authentically and that is paying off in a big way.
We made this product because we loved bringing people together and having a good time centered around music. That has stayed true in our marketing and it is why consumers relate so well to our brand and keeps them coming back.
What have been your biggest lessons learned in the last year?
I think the most important lesson we’ve learned in the last year is that you have to hire great people to get great results. Once we started bringing in people with industry experience things really started to turn for us.
It took us a good 7 years to figure out the right combination of product, team, distribution network, and marketing. We almost went out of business probably 5 times...have gone months without salaries, many sleepless nights.
Additionally, you have to go the extra mile to maintain an amazing company culture, which I can proudly say we have built. As a remote company in this new world, you have to find ways to keep everyone connected. As an example, I make sure to have a 1 on 1 with everyone on the sales team at least once a month to make sure that they are heard and that the reasons they wanted to work at BeatBox and what they hoped to get out of the role are still in play.
What’s in the plans for the upcoming year, and the next 5 years?
Next year we plan to be in all 50 states and will be dipping our toes in our first international markets.
We are also launching some really cool innovations with a 6% zero sugar product.
Our goal is to deliver $40m in revenue next year, and $70m in 2023. But we want to be at a $100m run rate by 2023 meaning we will be seeing $8m months. We want to be a $1B brand by 2024!! And more importantly, bring BeatBox to the masses because they want the product, they just need it in way more stores close to them!
It really is a dream come true. Since day 1 we said we want to be the Red Bull of the alcohol industry, and now we have a chance to actually do it. It’s surreal.
We are planning to raise roughly $15m to be able to hire close to 100 people over the next 18 months, and significantly increase our marketing spending. It’s an aggressive plan but we love our team and believe we can do it successfully and get a significant amount more share of the category.
Have you read any good books in the last year?
Our team runs on many components of the Entrepreneurs Operating System (EOS). So we have everyone on our team read Traction. It’s common sense stuff but when used all together it can really change the way your company runs.
Advice for other entrepreneurs who might be struggling to grow their business?
It took us a good 7 years to figure out the right combination of product, team, distribution network, and marketing. We almost went out of business probably 5 times...have gone months without salaries, many sleepless nights.
But what never changed is our belief in our brand and our will to survive. You have to stay alive long enough until you can figure it out. So if you truly believe in your product, vision, company, etc….then don’t give up. Keep fighting until you figure it out. Don’t ever let anyone tell you you can’t do it because you can if you find the right leverage points and never quit.
Are you looking to hire for certain positions right now?
Yes, we are going to be hiring for 50+ positions in the next year. Check out our LinkedIn to see when new jobs are posted!
Where can we go to learn more?
- www.beatboxbeverages.com
- TikTok: @beatboxbeverages
- Instagram: @beatboxbeverages
- Twitter: @beatboxbevs
If you have any questions or comments, drop a comment below!
- 4,818 founder case studies
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- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
