BeatBox is an “Original Party Punch,” offering fun and nostalgic flavors in a sustainable and resealable package. The company’s journey started in 2012 in the live music capital of the world, Austin, TX. Pulse 2.0 interviewed BeatBox VP of Global Marketing, Zech Francis, to learn more about the company.
Zech Francis’ Background
Francis is obsessed with building consumer brands. And Francis said:
“I’ve been an investor, senior advisor, and serial consumer goods entrepreneur for over two decades now and have been lucky enough to help build brands that generate over $150 million in revenue today.”
“My passion, or borderline unhealthy obsession (depending on who you ask), with building brands started at 9 years old. At that age, I would sketch logos and brand ideas in my school notebook whenever I had a chance. That led me to an early career in the apparel industry where, by the time I was 24, I was a partner and owner of clothing brands selling in popular retail chains like Nordstrom, Buckle, Bloomingdale’s, PacSun, Tilly’s, and many more amazing retailers.”
“By the time I was 30, I was in a financial position where I was able to start investing and advising for some exciting start-ups outside of the apparel industry. This new career path led me to my most exciting project to date at BeatBox.”
“I invested in BeatBox in early 2018, became a senior advisor in 2020, and currently run the marketing team as VP of Global Marketing. In that short time, BeatBox went from $1.2 million in revenue in early 2018 to becoming a top 10 ready-to-drink cocktail and the #1 fastest-growing brand in the category in the U.S. in 2023. We’re currently on pace to hit $100M in trailing 12-month revenue this year, which honestly feels surreal.”
Formation Of BeatBox
How did the idea for the company come together and what are your primary responsibilities at the company? Francis shared:
“I had the privilege of investing in BeatBox early on, but the brand’s inception is owed to the brilliance of my close friends and the gifted founders of BeatBox: Justin Fenchel, Aimy Steadman, and Brad Schultz. To get an exciting and quick insight into the brand’s journey, check out our episode on Shark Tank:
“My primary responsibilities running the marketing team at BeatBox are to make sure we’re outpacing our competition with consumer awareness, building an incredible community of super fans that we call our “BeatBox Fam”, managing our overall budget for the various sub-departments, and helping our sales team get the “pull” off the shelves from consumers that makes any consumer brand successful.”
“I also have the privilege of leading our large partnership deals with celebrities like Avril Lavigne, festival giants like Live Nation, and also sports deals with the Dallas Mavericks, LSU, University of Alabama, and many more.”
Favorite Memory
What has been your favorite memory working for BeatBox so far? Francis reflected:
“I’ve been really fortunate to be able to scale several very fast-growth brands in my career, but nothing compares to the meteoric rise we’re on with BeatBox. It’s truly the definition of the ‘hockey stick’ growth that every entrepreneur is chasing after.”
“When I invested and started advising for the business in 2018, we had about $1.2 million in revenue. Fast forward to 2023, and we’re on track to pass $100 million in trailing 12-month revenue this year alone. Our team, our partners, and our consumers are really all clicking at once right now and it’s amazing to be a part of.”
Core Products
What are the company’s core products and features? Francis explained:
“BeatBox is ‘The Original Party Punch’ and we sell 12 delicious, nostalgic flavors that pack an 11.1% ABV ‘punch.’ Our product is sold in 16.9 oz eco-friendly and resealable single-serve packages. BeatBox is currently available in over 73,000 retail stores across the US – from 7-Eleven to Kroger, to Circle K, and thousands of other amazing retail partners.”
“What makes BeatBox stand out from other brands is our amazing flavor. You can create the most incredible marketing campaign on earth, but if the product isn’t worth purchasing again, you’re going to build a brand that fades out pretty quickly. BeatBox has real staying power in the flavored alcohol space because of our product and our incredible team.”
Have you faced any specific bottlenecks in your sector of work recently? Francis acknowledged:
“Every single day brings a new challenge, no matter what business you’re in. At BeatBox we’ve instilled an amazing “solution minded” and ‘growth mindset’ mentality, so even when things get tough, we have an incredibly collaborative and positive culture where everyone is willing to jump in and help.”
“If I had to pick one specific potential bottleneck for us currently it’s that BeatBox, as of this year, is the #1 Tetra 500ml alcohol brand in the United States. No one has ever gotten this big in our packaging format, so everything past this point is uncharted territory. Which means that we need to be very nimble and creative with how we ramp up our production capacity. Fortunately for us though we have an amazing Operations team.”
Evolution Of BeatBox
How has BeatBox evolved since launching? Francis noted:
“When BeatBox first launched we debuted on Shark Tank as a large 5-liter box, which was an insane ask for consumers to buy a new brand they had never heard about before in such a large format. In 2016, the brand pivoted to a single-serve format with our partners at Tetra Pak’s packaging technology. We also shifted our distribution model to the beer wholesaler network. Those 2 changes to the business fundamentally changed our trajectory to get us to where we are today.”
Significant Milestones
What have been some of the company’s most significant milestones? Francis cited:
“We’ve had a lot of incredible milestones over the last few years, but here are some of the key highlights:
In 2014, BeatBox debuted on Shark Tank, where we received a $1 million investment from Mark Cuban. To this day, that $1 million investment from Cuban is one of the largest ever made on Shark Tank. Mark Cuban also has said BeatBox is one of the best investments he’s ever made on the show and has mentioned BeatBox in publications from Forbes to People.
In 2016, we pivoted away from our large 5-liter box format and began production with our partners at Tetra Pak. This new 16.9oz single-serve packaging helped to lay the foundation for where the business is today.
In 2019, BeatBox began to gain real traction in national chains like Circle K, Kroger, and 7-Eleven, along with thousands of independent liquor and convenience stores.
In 2022 we tripled our marketing spend to go big on music festivals influencer partnerships, and I was able to sign our biggest celebrity deal to date with Avril Lavigne. The BeatBox x Avril Lavigne “Creator Series” Pink Lemonade flavor launched in Q1 2023, and YTD it has sold over 4 million individual BeatBoxes at tens of thousands of accounts nationwide.
As of 2023, our biggest milestone is that we are one of the top 10 largest ready-to-drink cocktail brands in the US and most notably, BeatBox is the #1 fastest-growing in the category as we rapidly approach $100 million in revenue. Looking forward into 2024, we have no signs of slowing down.”
Customer Success Stories
After asking Francis about customer success stories, he cited:
“With how rapidly we’re growing as a company, there are countless “wins” and success stories across the organization, which has led us to triple-digit revenue growth for five years in a row without having to slow down due to consumer demand, production bottlenecks, or cash flow. This insane growth has led to where we are today as the #1 fastest growing top 10 RTD in the country.”
“The most exciting success story that comes to mind is how much growth we’re driving in 7-Eleven stores nationwide. BeatBox is the #1 Tetra brand at 7-Eleven, and we’re driving 40% of their total wine growth. When you see those numbers at one of the largest chain stores in the world, you know our team is doing something right.”
Funding/Revenue
After asking Francis about the company’s funding and revenue, he revealed:
“I mentioned our revenue a few times in this interview so we’re definitely not shy about sharing our revenue growth story. Our co-founders, Justin, Aimy, and Brad, have also talked about it publicly on more than one Shark Tank update, so I’d be happy to share some high-level numbers. Since early 2018 we’ve grown our revenue from $1.1 million to a trailing 12-month revenue of $100 million in 2023.”
“We’ve accomplished this revenue without taking any funding from big conglomerates in the alcohol industry or any traditional venture capital firms and instead we’ve raised money from individuals, like myself, who believe in the brand’s vision. We also have around 3,000 incredible online investors who invested through a platform called WeFunder. At this point, we’re scaling like crazy, profitable, and for the time being, we plan to stay self-funded.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Francis assessed:
“We are laser-focused on becoming a portfolio brand in the flavored alcohol space, competing with brands like Mike’s Hard and Boston Beer’s Twisted Tea. We have a clear vision of how BeatBox will grow to $500 million in revenue by the end of 2028, and this year definitely proves that our team and our strategy are working in a big way. It’s rare that brands in the alcohol industry can sustain five years in a row of triple-digit revenue growth. Overall, the ready-to-drink (RTD) market is projected to reach $16 billion by 2028, so we still have plenty of room for growth.”
Differentiation From The Competition
What differentiates the company from its competition? Francis affirmed:
“Beyond us making an incredibly delicious product that packs a punch and being sold in 1 out of every 4 accounts in the US that can sell alcohol, we are really differentiated by our competition because of our incredible community. We invest a tremendous amount of time, effort, money, and energy into our ‘BeatBox Fam,’ which has become a small army of super fans all across the country who preach the BeatBox ‘gospel.'”
“Being able to build our brand in an authentic and connected way, vs. us being yet another manufactured brand designed by a big alcohol conglomerate, has been a true competitive advantage for us. Consumers today can sniff out BS, and the fact that we are so connected to our consumers in an authentic way through how we show up on social media, activate at music festivals, and the way we give them so much personalized attention allows us to really stand out in this day in age.”
Future Company Goals
What are some of the company’s future company goals? Francis concluded:
“With us projected to hit $100 million in trailing 12-month revenue in 2023, we have no plans to slow down in 2024 and beyond. As mentioned previously, we have a clear vision of how we’re going to hit $500 million in revenue by the end of 2028 and build BeatBox as a portfolio brand platform. We’re going to hit this huge revenue milestone while also doing things the ‘BeatBox Way.’”
“The BeatBox Way is how we differentiate ourselves from other brands in the industry, and it’s a real cultural movement in our company that pushes us all to do things differently. For example, this year, we received our B Corp Certification, making us the only top 10 RTD brand to receive this prestigious recognition for our sustainable business practices. This isn’t something we needed to do, and it’s something we went out of our way to do.”
“Another part of the ‘BeatBox Way,’ and my personal favorite, is that we have a strict ‘no asshole policy.’ This means that we don’t hire people who are assholes, we don’t do deals with people or businesses who are run by assholes, and in general, we steer far away from anyone and any deal that is going to make our lives a pain in the ass. The world is filled with so many good people and so many great business opportunities, so we’d all be better off avoiding anything that makes life more stressful or complicated.”
