In this ongoing series, we share advice, suggestions, and insights from real entrepreneurs who fight the battles of business every day. (Answers have been edited and condensed for clarity.)
Karl Ziegler is co-founder and CEO Rose Spritzer which launched in 2021. “I wear a lot of hats, but in short, I oversee sales, production, marketing, and finance,” Ziegler told Entrepreneur. Read on to get his advice for entrepreneurs in the alcohol industry and find out how his company became a rising star in the growing ready-to-drink category.
Tell us briefly about your organization.
Roseade is a rosé wine and lemonade drink that is made in California with all natural ingredients. It has 8% ABV and introduces 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.
Source: Roseade
What inspired you to start out your small business?
Honestly, I used to be drained of working for individuals who didn’t move fast enough or made bad brand decisions. I used to be drained of introducing “pre-sales”—products that I knew were doomed to fail and would have to be sold (often by me) at steep discounts to get rid of. I’m unsure I had one “aha” moment, but I definitely knew at some point that I desired to do my very own thing. It was at all times in the back of my mind: “You’ll know it when you see it.”
How is it different from other canned alcoholic beverages?
Roseade Spritzer stands out from other canned ready-to-drink beverages in a few ways. The most noticeable difference is the flavor profile. There are a lot of sweet, sugary RTDs on the market, and Roseade Spritzer is different. It’s more tart than sweet, with a very nice, vivid acidity. It’s refreshing, and consumers like with the ability to have a few in one go without feeling the palate fatigue. 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’re now one of the leaders in the category. What sets us apart is that we’re made from 100% natural ingredients with the highest quality rosé wine, real sugar, and real fruit juice. Consumers are at all times pleasantly surprised to listen to that we’re naturally low in calories, in addition to sugar and gluten free.
What are the biggest challenges in this industry?
The RTD sector in wine and spirits is currently hyper-competitive because it is the fastest growing across the board. Standing out from the crowd is the most difficult aspect, especially as a startup when you are underfunded like we were until our successful fundraising in the spring. This is what makes us so proud of the success we have had so far.
Please explain what a logo is, the way it was created and how vital it is to the brand.
Lenny the Lemon was created by our co-founder Lee Smallman and our graphic designer Jack Meirs. Lee began following my Instagram account in 2018 and that’s where I first saw the logo. As soon as I saw that cheeky smile and those cool sunglasses, I used to be intrigued, even without knowing what the product was. Once I spotted it was a rosé wine and a lemonade spritzer in Australia, I immediately DMed Lee and arrange a phone call and we began working together. Consumers are immediately drawn to our branding and need to learn more about it. Our branding draws them in and the taste is what keeps them. We’re starting to take a position in line extensions and brand storytelling – promoting Lenny the Lemon is key.
Can you talk about the death of your co-founder Lee and the emotional impact it had on you and the company?
It’s never an easy thing to speak about. When Lee and I made a decision to maneuver forward and import Roseade cans to the US market in 2020, we spoke almost every day for hours. We discussed many details about the company and how we might run it together – he in Oz and I here in California. During that point, we became incredibly close friends, like brothers. Lee accomplished several successful production runs in Australia. Lee was at all times on top of things, never missing a single detail. However, when we first tried to provide the Roseade Spritzer in California, mistakes were made and we ultimately lost the entire production run of 50,000 cans. It was around this time that Lee learned he had a cancerous brain tumor. To say I used to be devastated is an understatement. I had just lost a production run that I had personally funded, and now I used to be about to lose my business partner and friend. I believed we were done as a company. I think a lot of people probably would have quit at that time. In my case, I dug deep and decided I might fight to maintain the brand going until I ran out of options. I knew consumers loved the brand, and the desire to maintain Lee’s legacy alive fueled me through the tough times. Lee fought and lived for about 18 months after his diagnosis, 12 months longer than his doctors had given him. Thankfully, in October 2022, about a yr before his death, we were finally in a position to meet in person.
What gives you energy and motivation?
I have at all times been a pretty motivated person professionally, but honoring Lee’s memory by making the brand successful is a key motivator. My wife and son at all times encourage me to attain greatness so I can make them glad. Now, of course, I need to succeed so that our investors make money from this enterprise and hopefully other ventures in the future.
What advice would you give to entrepreneurs in search of financing?
As a skilled wine and spirits marketer and salesperson, I had a solid understanding of the right way to grow a brand. What I didn’t have before starting Roseade USA was any experience raising funds. We managed to lift a small amount from friends and family before we launched and invested about the same amount through our wine and spirits company, Concurrent Wine & Spirits. Once we lost our first round of cans that were funded through lines of credit, we had to lift money to survive. We mainly kept trying to lift money from April 2022 until we closed our last round on May 15, 2024. My wife and third co-founder, Victoria Ash, played a huge role in helping us navigate the maze of VCs, family offices, angel investors, etc. If it weren’t for Victoria spending her nights and weekends networking and doing research on LinkedIn to discover strategies and potential investors, we might never have done it.
What advice are you able to give about preparing for a presentation?
Oh, the pitch deck… the bane of my existence for the past 2 years. I swear we’ve had 500 different versions of the pitch deck since 2022. Everyone thinks they have the secret sauce to a successful pitch deck. Take their recommendations with a grain of salt. No one knows your brand higher than you. You have to be comfortable with the material in your pitch deck and understand it inside and out. Less is more! It took us ceaselessly to figure this out. All you would like is top-notch information at the start. Make sure you have skilled help with the design, it makes a huge difference in first impressions. Know your numbers and don’t forget that you simply are an expert in your brand and category. Be confident but not cocky and show them the path to success. Set a clear date for when you open and close your funding rounds and follow it. This will help create a sense of urgency in potential investors. If we could go back in time, we might have raised a lot extra money early on, before we launched. After a few years of being on the market, you must have some sales success, otherwise you have a difficult road ahead of you.
What do many aspiring business owners think they need but actually don’t?
It may sound crazy, but I don’t think you could spend a ton of time on a marketing strategy before you begin. Create a framework that you could use to remain on track, and then be nimble enough to regulate on the fly. As Mike Tyson said, “Everyone has a plan until they get punched in the face.” I think the ability to think on the fly, reply to changing market conditions, and use your intuition is much more helpful to your small business than a comprehensive plan that took 12 months to place together. Don’t stray too far from your path when you begin a latest enterprise. I had years of experience in the industry before launching my two firms, so while there have been latest challenges, I have a basic understanding of what we’re attempting to do. Understand that failures and mistakes are the strategy to improve, and do higher 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 previous fiscal yr sales and are on track to satisfy our revenue goal for the yr. We are very excited to launch our first line extension, Pineapple Roseade, in August! This yr, we opened in two latest states—Idaho and Arizona—and each exceeded our expectations. As I at all times say about Roseade, it’s simply a higher daytime drink!