This transcript is auto-generated and may contain spelling and grammatical errors
Tyler Jorgenson (00:00)
Welcome out to Biz Ninja Entrepreneur Radio and we are continuing on this really cool feature where we’re some people that are making big waves in the alcohol space. It wasn’t an industry I knew a lot of and I’ve kind of gotten to know more people in the industry recently and really excited to have Charlie Grace on the show to talk about what they’re doing with a new brand called NightOwl. So welcome out to the show, Charlie.
Charlie Grace (00:27)
Thanks Tyler, thanks for having me. Excited to talk more about Nite Owl.
Tyler Jorgenson (00:29)
So yeah, absolutely. We’re gonna do a little bit of jumping back and forth through time here. And so right off the bat, I’m just curious, like when was the moment you first realized that you were an entrepreneur?
Charlie Grace (00:41)
I think it’s since I was younger, coming out of college, know, and venturing into some, you know, hospitality ventures. You know, my family, my father was a restaurateur and my brothers are entrepreneurs and myself, you know, I always was looking for creative ways to build businesses. And, and one of my first ventures out of college was, was a bar in New York City.
Tyler Jorgenson (01:05)
That’s no joke, man. You’re swinging for the fences right out going for the hard stuff, man. That’s awesome.
Charlie Grace (01:11)
It’s been a fun learning experience for sure.
Tyler Jorgenson (01:14)
I’m sure. And so you’ve created NightOwl and if you want to check it out, you can go to www .drinknightowl .com and it’s a ready to drink martini. But what made you choose that and what makes NightOwl unique?
Charlie Grace (01:27)
Yeah, so I think, you know, first and foremost, if you look at, you know, the overall alcohol space, it’s obviously super competitive, lot of oversaturation, particularly in RTDs. And then, you know, had a major moment, call it during COVID. And you’re seeing that momentum just in the numbers and continued growth of RTDs in general. And I think, you where we wanted to focus was at the premium cocktail side that’s more inefficient to make.
you know, both on premise and for the consumer at home. you the initial idea was really, hey, how can we make a bar quality, a bartender quality or cocktail quality espresso martini, ready to drink format. And I think a big differentiator of the Nite Owl brand is we have a tequila skew as well.
Tyler Jorgenson (02:15)
Yeah, which isn’t common, right? So, you know, usually your average martini is going to be vodka based. And so what made you decide to do that?
Charlie Grace (02:24)
Yeah, just like, you know, the continued growth of tequila, the younger consumers, you know, are drinking more and more tequila. And, you know, I thought the differentiation of a tequila one that A, I think is delicious, but it complements well vodka. And so we wanted to have call it a offering for consumers. And, you know, I think the growth of the espresso martini in general, and it being kind of the fourth most cocktail.
popular cocktail in the world, think it’s here to stay and we want to bring a solution for both high volume venues or bars to the consumer at home that doesn’t have all the ingredients or time to make it.
Tyler Jorgenson (03:05)
So that makes sense. So you went from, had your own bar, and what made you want to get into the space of actually owning your own?
Charlie Grace (03:15)
Great question. think, you know, again, I wasn’t just looking to start, you know, an alcohol brand. I have a co -founder in the business who kind of came in at from a strategic angle where he owned a big co -packer in the Northeast for beverage. So he kind of helped on all streamlining the production operations to start this. But, you know, to be frank, I think I saw the inefficiencies of making this cocktail in crowded bars and
Tyler Jorgenson (03:42)
yeah.
Charlie Grace (03:44)
in high volume places, whether it’s a venue, a music festival or a hotel mini bar. We can be a solution, I think, first and foremost. And so I think we’re solving a problem. And I wasn’t just going to…
Tyler Jorgenson (03:58)
So talk me through that. Let’s assume that the average listener doesn’t know what goes into behind the bar when they order an espresso martini, right? So talk me through what an average bar has to do and then what they have to do if they are just gonna use nightowl instead.
Charlie Grace (04:16)
Yeah, so I think, you know, first is you got to have the staff, right? And it takes time to make these. And I always say espresso martinis are contagious. You know, when one person orders one, typically the whole group does. And so, you know, the bartenders making four or five, six of these at one time, they’ve got to be getting a the coffee or espresso. They’ve then got to mix that with the spirit. And, you know, every bartender makes it differently. And so I think, you know, where we were
how we approach this is let’s make a really good, consistent base level espresso martini that’s coffee forward, not too sweet. And if the bartender wanted to add, call it a liqueur or shot of Bailey’s or Kahlua, it’s great. But in terms of how consumers drink it or how a bartender serves it, means whether A, out of the can, which we like the size of our vessel at 200 milliliters, it’s a full espresso, 12 and a half ABV.
full cocktail, should say, full strength cocktail. they can drink it, consumers can drink it cold out of the can. They could shake it up and pour it in a martini glass and be fancy and garnish it with three beans like you normally would see. Or I think a lot of people drink it over ice, kind on the rocks. So a lot of flexibility to drinking night out.
Tyler Jorgenson (05:32)
Yeah, it’s interesting. I’ve actually seen that contagious nature of it. And I once saw it at a bar that they actually would have to go get the espresso from the next door restaurant each time. And so they’d come back, they’d finish it and then someone like, I want one of those. And you’d see the bartender visibly take a deep breath, sigh, go order it again. And it was very inefficient. yeah, interesting. It solves a real problem in that industry.
But it also is your go -to -market strategy and your goal to really just be in all the bars. Are you trying to sell directly to end consumers? What’s your makeup there?
Charlie Grace (06:11)
Yeah, and I think, you know, when we initially launched, in full transparency, took us about almost two years to get the liquid right. And that’s just the nature of combining coffee, alcohol, two, you know, call it tough, tough ingredients to mix together and getting the right formulation. that was first and foremost. And then with our go -to -market strategy, obviously we wanted to build a brand and a presence. You know, we think the name obviously alludes to
Tyler Jorgenson (06:27)
Yeah.
Charlie Grace (06:39)
what an espresso martini is. It’s a little pick me up, whether it’s pre -going out or even at brunch. But for most people, it’s sometimes a post -dinner cocktail and it will keep you up as a night owl. So creating that brand was obviously very important for us. And then lastly, going into market with alcohol, obviously there’s a three -care system. You need to have an actual distributor.
and sell the product to the distributor before it ever gets to the consumer. So it’s not necessarily easy to get the product in the hands of the consumer. But we approached it first and foremost, self distributing with a group called Park Street, got the product out there in New York, New Jersey and Florida. And we were able to sell online at first and then our first call it from there, we went kind of more liquor stores off premise.
Tyler Jorgenson (07:29)
nice.
Charlie Grace (07:35)
you know, that was kind of our first angle and now we’re really focused on premise. So, know, bars, restaurants, hotels, mini bars, know, big venues, et cetera.
Tyler Jorgenson (07:45)
So you said it took you two years to get the formulation and figure all that out. You know, you’ve been in the industry, but not in this side of things. What was the most surprising part of that experience?
Charlie Grace (07:57)
I think just how every consumer has a different call it taste profile and really just working hard to find the best call it base layer that’s not too sweet, not too bitter, not too high in sugar, that pours really nicely. And I think that’s a key thing for us is with our 200 milliliter can, we’re able to nitro each can. So when you shake it up and pour it out, it has that nice foam head. And so it was just a lot of trial, a lot of…
formulation and really coming to a liquid that we were really confident in.
Tyler Jorgenson (08:34)
That’s cool. then, you know, you’ve, you got started, you had a really good partner getting into some distributors and getting started. What, as you look forward, what are some big things you want to see happen in the brand over the next year or so?
Charlie Grace (08:48)
Yeah, great question. mean, think, you know, we’ve continued to grow. We’ve been in market since April of 2023. So, you know, we’re, we’re pushing along. And I think the next big step for us is, the on -premise really, you know, honing in on the, you know, bars, restaurants, venues, strategic call it partnerships, whether it’s, you know, hotel groups or music venues or arenas, you know, airlines potentially, et cetera, and really, you know, focusing to drive
call it brand awareness and consumer trial.
Tyler Jorgenson (09:22)
Yeah, that’s, you know, running a brand is really cool, especially as you start to, you know, get the brand on. I was looking on your Instagram, you got like a cool sweatshirt. I don’t even know if that’s something you actually sell, but you start to see the brand become something bigger than just, just a product, right? And, you know, it’s one of the things that’s rewarding about building a product is seeing your team grow and see things like that. As you’ve been growing the business,
you know, what are some things that you’ve had to also grow and learn to be able to handle the new challenges that came your way?
Charlie Grace (09:57)
Yeah, I mean, think first and foremost, you got to build a great team. You know, you’ve got to have people in the market. First of all, you have to have a marketing strategy, which then translates into how do you sell. And I think you got to really surround yourself with with key call it employees that, you know, have been in the business, understand alcohol and some of the nuances to every, you know, there’s a lot of different laws and states.
and different ABVs, whether you can be sold in a grocery store, in a gas station, or just liquor store, et cetera. Some states are control states where they control all the alcohol to underlying retailers. So it’s complex. And I think you’ve got to surround yourself with smart people that have been in this space and understand the alcohol industry.
Tyler Jorgenson (10:46)
Yeah, that’s for sure. So learning to lead a team and hire well has been probably one of the bigger things outside of just developing the product that you have to figure out.
Charlie Grace (10:56)
100%. And we were fortunate to bring on a key employee late last year that’s really kind of streamlined our distribution strategy, our sales strategy, and kind of been a really, call it, key partner to get us to where we are today. And now we’re focused on going deep in the current states we’re distributing.
Tyler Jorgenson (11:20)
So you’ve got a list of current states, but do you have a like a dream location you’re hoping to get into next?
Charlie Grace (11:25)
I think we’ve been focused up and down the East Coast, being a New York City based brand. The Northeast is really important to us. And then as you go farther down the East Coast, obviously Florida, Tennessee, Georgia, et cetera, and kind of growing our footprint there and really focusing on those markets without expanding too quick. Just to be in, let’s just say Nevada, to be in Vegas, to be in Vegas, we want to make sure we go deep in the markets we’re in today.
Prove out the product and then look to expand
Tyler Jorgenson (11:55)
Sure. That makes sense. Yeah, absolutely. If you could have one celebrity endorsement, right? One person that steps in tomorrow is like, this is the face of the brand. If you, you know, let’s say you had an unlimited check to sign someone like that, who would it be?
Charlie Grace (12:13)
Great question. We’ve talked a lot about that and it’s hard to just pinpoint one name and we’ve had conversations. I think the key thing with that is making sure it’s really call it organic. Meaning that the person that, you know, let’s just say is your call it brand ambassador or partner, whether it’s a celebrity and influencer, athlete, et cetera, you know, really believes in the brand wants to, to organically market the brand.
and they want to live and breathe it and be in front of, it, whether it’s key retailers, distributors or consumers, you’ve got to find someone that’s going to buy into it. The last thing we want to do is just bring someone on that’s purely marketing channels and maybe post about it on social media, but that doesn’t necessarily get buy -in from the consumer.
Tyler Jorgenson (13:04)
Yeah, way to, I agree with all of that, but I’m gonna follow up. who are the, so I’m sure everyone on your team’s got a couple of different people. And I’m not saying this has to be the spokesperson, but like, who would you be super pumped with if you saw a tag you guys on a post tomorrow? You know what I mean?
Charlie Grace (13:24)
man, well, I think that this whole, call it influencer world, I think that there’s a lot of, you know, big figures that are coming out these days. And so if you’re able to get one of the big players there, which we all know, you know, whether it’s, I’m trying to think of the exact person, but I guess, you know, we’ve even had conversations with actors and athletes and, you know, athletes and stuff to promote alcohol and actors.
Tyler Jorgenson (13:44)
Yeah.
Sure.
Sure.
Charlie Grace (13:54)
they’re so busy and so you need someone that’s kind of organically market it in their channel so I would lean towards call it more of an influencer.
Tyler Jorgenson (14:01)
Yeah, absolutely. Have you had any of those moments already where you’ve seen, you know, somewhere where you didn’t place the product, but it was like you saw it pop up and what was that like?
Charlie Grace (14:13)
Yeah, no, it’s definitely rewarding to see it organically out in the wild, call it. And I think one thing we did smart when we launched is a lot of gifting. Call it VIP gifting to PR, influencers, celebrities, retailers, national accounts. And I think that’s a key strategy to get the product in people’s hands. Whether I’m gifting it to someone like yourself or a big celebrity.
Tyler Jorgenson (14:19)
Yeah, for sure.
Charlie Grace (14:42)
Them just seeing it, feeling the brand, hopefully trying it, knowing that it exists is key.
Tyler Jorgenson (14:49)
Absolutely. Yeah, it’s, you know, it’s fascinating. I’ve owned products in like, you know, apparel, accessories, know, nutrition, stuff like that. Never done anything in this space. And so, but it’s really neat when you see, you see a product or you see something you created somewhere where you didn’t place it, right? Where it like found its way, like you said, in the wild. And it is, it’s really cool. It’s like, it’s very validating. When was the, you know, you started with, took you two years to develop a product.
You had some good relationships, but what was that first moment where you’re like, okay, we’re moving from idea into this might actually work. Was it an initial contract or a landing of a specific deal? What was that first moment where you’re like, I think we got something.
Charlie Grace (15:35)
Yeah, we’ve had like kind of two pivotal moments called one when we launched fortunate to be connected to one of the biggest retailers in New Jersey called Bottle King. And they were excited about the brand and they really got behind it. They had about 15 stores, you know, probably the biggest call it, you know, alcohol focused retailer in the state. So their buy -in initially was huge. And I think the other call it key moment was, you know, earlier this year in January, we,
We went to the WSWA, which is the big wholesalers conference, and it was in Vegas this past year. And we were fortunate to win, call it the RTD brand. And so we were able to compete on stage in Vegas against all other alcohol brands from tequila to wine, beer, non -alcohol, et cetera, present the brand in front of an audience of all the key decision makers. And I think that was huge for us. And then.
You know, I think the awards, I mean, I we’ve won over 10 awards on the liquid and, you know, all the best in class, double golds to golds to Platinum’s, you all those different awards, they matter. And I think having that validation that know that we have a great liquid, you know, continues to propel us, you know, in the market. You know, we’re confident to put this up against any espresso martini.
Tyler Jorgenson (16:49)
yeah.
That’s really cool. Yeah, it is validating. know, people can pretend that it’s not to get the awards and stuff, but it’s an important thing. And it sends good signals out to the marketplace as well. You know, as you guys are building this, as you’re starting to go deeper into the markets where you already exist, you know, I am a big believer that life is not just about business. It’s also about your personal life. So what’s one item on Charlie’s personal bucket list you’re going to
in the next 12 months.
Charlie Grace (17:33)
Great question. I guess business aside, I love, call it building things and seeing the success points along the way and taking a step back and saying, hey, we’ve got a great product and we’ve had these wins along the way. I want to continue to grow this. So for me, it’s just really always taking a moment and a step back to say, hey,
We’re in market, we’ve got a great product, we have the right, call it partners, and let’s see this through.
Tyler Jorgenson (18:09)
Yeah, so just kind of enjoying, make sure you’re enjoying the process, not just rushing to the next step.
Charlie Grace (18:15)
Yeah, I think a lot of entrepreneurs get caught up in, know, every day is a struggle, every day is a grind. Some days you have wins, some days you have losses. But I think if you believe in the product and the team, you know, and you continue to put your head down and just focus on what you know you can do, I think you can build a big brand.
Tyler Jorgenson (18:37)
Yeah, absolutely. And I think the branding is really on point, very clever. Obviously play on lots of good plays on common terms and sayings and what an espresso martini does, very cool stuff there. As you guys are just expanding, do you see yourself adding more skews or just really trying to go deeper with what you’ve
Charlie Grace (19:01)
I think for the next, call it year, let’s just say from now through 2025, we have two great liquids. And I think we’ll focus on growing those each and every state we’re in. But let’s say down the road, two or three years down the road, I do see future product iteration. But I think our brand will be focused on the coffee and alcohol space and we’ll not go into this other.
pre -made or ready to drink cocktails. So I think focusing on what we have and different spirit bases maybe or different variations of what we have, whether it’s a creamier one, et cetera, is on our radar. But for now, I think let’s focus on these, prove this out, and then take a step back to say, what are consumers also asking for? And if we were to come out with something, what
What’s the next best thing for us?
Tyler Jorgenson (20:01)
Absolutely. So you’ve got, you got good momentum. You guys are doing some great stuff, but you’re only a few years in. And so inevitably, and you mentioned it a moment ago, that a lot of entrepreneurs are stuck in that constantly hustling. There’s wins and there’s losses. What was one of the first major obstacles that you faced and how did you overcome?
Charlie Grace (20:20)
Well, think, you know, talking about the formulation process, I think, you know, we were self -funding and I think, you know, we didn’t think it was going to take us that long to get to market. And so, but, you know, we stayed firm to the, to the premise that, you know, first and foremost, you got to have a great tasting liquid because if it doesn’t taste well, people aren’t going to drink it. And I think that goes for consumer products in general. And so I think.
we really invested upfront in the liquid and getting that right. And there were some moments there, you know, during that time period where we didn’t have a, you know, a fully baked formulation where I was like, maybe this just, maybe it’s just not meant to be in a ready to drink format.
Tyler Jorgenson (21:08)
Yeah. And so the way you got through that was just what sticking, sticking to it, staying the course.
Charlie Grace (21:14)
Yeah, trial and error testing things, you know, from zero grams of sugar to 20 grams of sugar and figuring out, you know, the ingredient mix. And I think for us, we came back to the basics of very simple ingredient mix, you know, not too sweet, not too bitter, coffee forward. And so I think it just was a lot of trial and error with, you know, I’m sure our formulator, you know.
And we thank him for all that hard work, but I’m sure he was like, this is just, you know, thought this would be a three month, six month project, not a two year project.
Tyler Jorgenson (21:50)
Right, absolutely. And so you’ve got, again, really cool branding, good stuff happening. you mentioned that you came from a hospitality family, that you even launched your own restaurant at one point. And I believe you do some consulting and stuff as well. What are the common business principles that you’re just finding repeat over and over in all the things you’re doing?
Charlie Grace (22:18)
I think the number one thing for me has always been building a great network and constantly talking with people in and out of the industry. And I think, you for that, you learn things always along the way. And, you know, there’s doesn’t always have to be an agenda. Have conversations with people, get their perspective, get their advice, tell them what you’re seeing and, you know, get feedback. And I think for us,
We’re always in the market, talking with people and there’s not always some immediate outcome.
Tyler Jorgenson (22:53)
Yeah, that makes sense. And you’re right. Networking is something, it’s a whole lot idea of build your well before you’re thirsty. It’s not necessarily about one specific thing, just about constantly being there. And so as you’re now building some momentum, do you look back and see like, who can I help along the way? Who can I nudge forward and kind of mentor and help?
Charlie Grace (23:12)
Yeah, I mean, I’m always open to that. you know, I guess one, one cool story along the way is I’ve had, you know, some few entrepreneurs, younger guys that have reached out to me directly to say, Hey, I’d to chat with you. I want to start my own beverage business in some capacity. Love to get your perspectives, your learnings, et cetera. So I think, you know, you always got to give back and talk to people and you know, it’s a long journey. It’s not, you don’t, you don’t win overnight. And so, you know,
could always come back a flip side where I need help and I go to these other people. it’s definitely just a persistence game.
Tyler Jorgenson (23:52)
If you’re starting over today, what’s easier? A RTD alcohol product or starting a bar in New York City?
Charlie Grace (24:01)
Ooh, great question. I would say a bar. And I say that because it’s a physical location where you can manage costs a little more efficiently and you can figure out greater ways to get bodies in the venue. And I think with this, we thought we had a, call it product market fit and consumers wanted it, but…
Tyler Jorgenson (24:04)
Yeah.
Charlie Grace (24:28)
You almost have to go out and tell that story because it’s not just a tequila or a vodka brand. It’s not just a vodka seltzer. It’s a differentiated product in a growing segment.
Tyler Jorgenson (24:40)
Yeah, absolutely. So, you you mentioned creative ways to get people into the bar, right? Did you apply any of those creativity, any of that kind of guerrilla marketing tactics that you learned, you know, growing up in the industry, owning a bar into what you’re doing now at Nitell?
Charlie Grace (24:56)
We’re trying that’s that’s priority number one right now. And I, know, whether it’s, you know, simple POS, whether it’s sweatshirts, martini shakers, know, LED lights, any sort of, you know, refrigerators, mini bars, all those type of ideas, you’ve got to you got to make the brand first and foremost, they know they’re drinking a NightOwl. And that’s just, you know, constant iteration of figuring out what what resonates with the
Tyler Jorgenson (25:03)
Yeah.
Charlie Grace (25:26)
by the consumer.
Tyler Jorgenson (25:27)
Well, thank you so much for coming out and kind of sharing what you’re working on and what you’ve created over there at NightOwl. If you’re wanting to check more out, you can find them on socials at DrinkNightOwl or online at DrinkNightOwl .com. And if you’re in their market, definitely check it out and ask for it at your local establishment, wherever you’re enjoying drinks. So thanks so much for coming out on the show, Charlie. And to all my BizNinjas, wherever you’re listening, watching, or tuning in, it’s your turn to go out and do something.
Charlie Grace (25:55)
Really appreciate it, Tyler. Great to connect and thanks for making time.
Tyler Jorgenson (25:57)
Yeah, man