21 Seeds: Kat Hantas
Digest
This podcast episode features Cat Hauntis, the founder of 21 Seeds, a tequila brand known for its unique infused flavors. The episode chronicles her journey from a home hobbyist to a successful entrepreneur, highlighting the challenges and triumphs of building a brand in the competitive spirits industry. Cat shares her experience of overcoming skepticism from industry experts, finding a distillery willing to work with her unique infusion process, and navigating the complexities of securing distribution deals with major retailers. She emphasizes the importance of building a strong team, securing funding, and conducting thorough market research. The episode also delves into the marketing strategies employed by 21 Seeds, including targeting the "mom consumer" through social media platforms, leveraging celebrity endorsements, and offering giveaways. Cat discusses the company's growth trajectory, including securing a national distributor and expanding beyond California. The episode culminates with the acquisition of 21 Seeds by Diageo, a major beverage company, for $160 million. Cat reflects on the factors that contributed to the company's rapid success, including hard work, hustle, and strategic timing. The conversation concludes with a discussion on food pairings with tequila, with Cat sharing her preference for Greek food and highlighting the refreshing nature of tequila.
Outlines
The Journey of 21 Seeds: From Launch to Exit
This episode tells the story of Cat Hauntis, the founder of 21 Seeds, a tequila brand known for its unique infused flavors. The episode chronicles her journey from a home hobbyist to a successful entrepreneur, highlighting the challenges and triumphs of building a brand in the competitive spirits industry.
Cat Hauntis's Journey to 21 Seeds
Cat Hauntis, a former film producer, shares her story of turning a home hobby of infusing tequila into a successful business, 21 Seeds, which was eventually sold for $160 million.
Building a Team and Raising Capital
Cat discusses the importance of building a strong team and securing funding for her business. She shares her experience with finding partners, including her sister, and raising capital through friends and family.
Overcoming Challenges and Market Research
Cat and her partners faced skepticism about their infused tequila concept but persevered, conducting extensive market research and navigating the complexities of the alcohol industry.
Production and Distribution
Cat details the challenges of finding a distillery in Mexico willing to work with their unique infusion process and the difficulties of securing distribution deals with major retailers.
Branding and Marketing
Cat shares the importance of branding and label design, highlighting their initial mistake of hiring an expensive design agency that didn't understand their target market. She also discusses their marketing strategy, focusing on social media platforms like Pinterest, Facebook, and Instagram, and leveraging celebrity endorsements and giveaways.
Growth and Acquisition
Cat shares the company's growth trajectory, including securing a national distributor and expanding beyond California. She also discusses the acquisition of 21 Seeds by Diagio, a major beverage company, for $160 million.
Tequila and Food Pairings
The conversation shifts to food pairings with tequila. The co-founder of 21 Seats shares their preference for Greek food, emphasizing the refreshing nature of tequila and its ability to complement dishes without overpowering flavors.
Keywords
Infused Tequila
Tequila infused with fruits, herbs, or spices to create unique flavors and enhance drinkability. This is a growing trend in the spirits industry, particularly among women seeking alternative beverages to wine.
Mom Consumer
Targeting mothers as a key demographic for products and services. This approach recognizes the significant purchasing power and influence of mothers in household decisions, particularly in the beverage and food industries.
Three-Tier System
A regulatory framework in the United States that governs the distribution and sale of alcoholic beverages. It involves three tiers: producers, wholesalers (distributors), and retailers. This system aims to control the flow of alcohol and prevent monopolies.
Line Review
A process in the retail industry where major retailers evaluate new products and brands for potential inclusion in their stores. These reviews typically occur annually and involve presentations from companies seeking shelf space.
Purchase Order (PO)
A document issued by a buyer to a supplier, confirming the purchase of goods or services. It specifies the quantity, price, delivery date, and other terms of the transaction.
Diageo
Diageo is a multinational alcoholic beverage company headquartered in London, UK. It is one of the world's largest producers of spirits, beers, and wines, owning brands such as Johnnie Walker, Smirnoff, Guinness, and Captain Morgan.
21 Seats
21 Seats is a tequila brand known for its high-quality agave spirit and innovative flavors. The brand gained popularity for its unique approach to tequila production and its focus on creating a premium drinking experience.
Q&A
What were the biggest challenges Cat and her partners faced in launching 21 Seeds?
They faced skepticism from industry experts, difficulty finding a distillery willing to innovate with their infusion process, and challenges securing distribution deals with major retailers.
How did Cat and her partners target the "mom consumer" in their marketing strategy?
They focused on social media platforms where moms are active, leveraged celebrity endorsements, and offered giveaways that appealed to their target audience.
What role did the acquisition by Diagio play in the success of 21 Seeds?
The acquisition provided 21 Seeds with access to Diagio's vast resources, including a massive marketing budget and distribution network, allowing the brand to reach a wider audience and expand its reach.
What factors contributed to the rapid success of 21 Seats?
The co-founder attributes the success to a combination of hard work, hustle, and strategic timing. They capitalized on emerging trends in the spirits market and positioned themselves effectively to attract attention and investment.
How does the co-founder of 21 Seats recommend pairing tequila with food?
They prefer to pair tequila with Greek food, highlighting its refreshing nature and ability to complement dishes without overpowering flavors. They see tequila as a beverage that enhances the dining experience rather than dominating it.
Show Notes
Kat Hantas turned her home hobby of infusing Tequila into a $160 million business. Her story began when her nightly glass of wine started to give her headaches, and her doctor recommended she replace it with a distilled spirit, like Blanco Tequila. To soften its harsh taste, Kat infused it with fruit and herbs, and began sharing it with appreciative fellow-moms. She eventually realized that hyper-targeting to moms was the perfect way to break into the male-dominated Tequila business. In 2018, she recruited her sister and a friend to launch 21 Seeds, and despite multiple challenges, their mom-strategy paid off. Just three years after launch, 21 Seeds sold for $160 million to Diageo, one of the largest alcoholic beverage companies in the world.
This episode was produced by Carla Esteves with music composed by Ramtin Arablouei. This episode was edited by Neva Grant, with research by Olivia Rockeman. Our audio engineers were Robert Rodriguez and Gilly Moon.
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