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In this ongoing series, we share advice, tips, and insights from real entrepreneurs who are struggling with their business every day. (Answers have been edited and condensed for clarity.)
Karl Ziegler is Roseade Spritzer It launched in 2021. “I wear a lot of hats, but simply put, I oversee sales, production, marketing and finances,” Ziegler told Entrepreneur. Read on for his advice for entrepreneurs in the alcohol industry and how his company has become a rising star in the fast-growing ready-to-drink sector.
Give us an elevator pitch about your business.
Roseade is a rosé wine and lemonade drink made in California using only natural ingredients. It’s 8% ABV and is a fun and delicious way to introduce wine to Gen Z. Led by our smiling lemon logo, Lenny the Lemon, we’re taking the industry by storm.
Credit: Roseade
What was the impetus for launching it?
To be honest, I was tired of working for people who didn’t move fast enough or made poor decisions with their brand. I was also tired of putting out “clearance sales” – products that I knew wouldn’t sell and that I had to sell (usually by myself) at a huge discount in order to get rid of. I don’t know if I had an “aha” moment, but I knew I wanted to do it myself someday. I always had this idea in the back of my mind that I’d know it when I saw it.
How is it different from other canned alcoholic drinks?
Rosédo Spritzers are different from other RTD canned drinks in several ways. The most obvious difference is the flavor profile. There are a lot of sweet RTDs on the market, but Rosédo Spritzers are different. They are more tart than sweet, with a very bright tart flavor. They are refreshing, and consumers love that they can drink multiple servings at once without tiring their taste buds. We were one of the first wine-based spritzers to come to market in 2021 since the heyday of wine coolers in the 80s. Today, we are one of the leaders in the category. We also stand out because we are made from 100% natural ingredients, including the finest Rosé wine, real sugar, and real fruit juice. Consumers are always pleasantly surprised to hear that we are naturally low-calorie, low-sugar, and gluten-free.
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What are the biggest challenges in this industry?
The RTD sector of the wine and spirits industry is extremely competitive right now, as it is the fastest growing in general. Standing out from the crowd can be the most challenging aspect, especially for a startup that was underfunded until we successfully raised capital this spring. This is why we are proud of our success so far.
Explain your logo, how it came about, and why it’s important to your brand.
Lenny the Lemon was created by co-founder Lee Smallman and graphic designer Jack Meyers. Lee started following my Instagram account in 2018, where I first saw the logo. The moment I saw that cheeky smile and cool sunglasses, I was intrigued, even though I didn’t even know what the product was. Once I realized it was an Australian rosé wine and lemonade spritzer, I immediately sent Lee a direct message, set up a phone call, and teamed up. Consumers are instantly attracted to our brand and want to know more about it. Our brand draws them in, and the taste keeps them. We’re starting to invest in line extensions and communicating our brand story. Promoting Lenny the Lemon is key.
Can you talk about the passing of your co-founder Lee and the emotional toll it had on you and the company?
This is never an easy thing to talk about. When Lee and I decided to move forward together in 2020 and import Rose-Aid cans to the US market, we talked for hours almost every day. We discussed many details about the company and how we would run the company together with him in Australia and me here in California. During this time, we became incredibly close friends and were really like brothers. Lee had run around 10 successful production runs in Australia. Lee was always spot on and never missed a detail. However, when we first tried to produce Rose-Aid Spritzers in California, a mistake was made and we ended up losing our entire production batch of 50,000 cans. It was also around this time that we found out that Lee had a malignant brain tumor. To say I was devastated would be an understatement. I had lost a production batch that I had been self-funding and now I was going to lose my business partner and friend. I thought it was over as a company. I think many people would probably have quit at this point. In my case, I thought it through and decided to fight to keep the brand alive until I had no other options. We knew our consumers loved the brand, and our desire to keep Lee’s legacy alive drove us through a very difficult time. Lee fought hard and lived approximately 18 months after his diagnosis – 12 months longer than his doctors predicted he would live. We were fortunate to finally meet in person in October 2022, about a year before he passed away.
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What gives you energy and motivation?
I’ve always been a very work-driven person, but my main motivation is to honour Lee’s memory with a successful brand. My wife and son always inspire me to achieve great things and make them proud. Of course, now I want to be successful and generate profits for my investors in this business and hopefully other businesses in the future.
What advice would you give to entrepreneurs looking for funding?
Having spent my career in sales and marketing in the wine and spirits industry, I had knowledge of how to grow a brand. Before starting Roseade USA, I had zero experience raising funds. We raised a small amount of money from friends and family before launching and invested roughly the same amount through our wine and spirits company, Concurrent Wine & Spirits. When our first canning failed, which we were self-funding with a line of credit, we had to raise money to survive. We were basically constantly trying to raise funds from April 2022 until we closed our last round on May 15, 2024. My wife and third co-founder, Victoria Ash, was a huge help in navigating the maze of venture capitalists, family offices, angel investors, etc. We would never have made it without Victoria spending her nights and weekends networking and researching on LinkedIn to identify strategies and potential investors.
Do you have any advice on how to prepare for a presentation?
Ah, pitch decks… they’ve been my bane for the last two years. I swear there have been 500 different versions of decks since 2022. Everyone thinks they have the secret to a successful pitch deck. Don’t take their recommendations at face value. No one knows your brand better than you. You need to be comfortable with the material of the deck and understand every nook and cranny. Less is more! It took us forever to figure this out. All you need at the beginning is top-line information. Get expert help with the design. It makes a big difference in first impressions. Know the numbers and remember that you are the expert on your brand and category. Be confident. But don’t be arrogant, and set the path to success. Have a clear start and end date for your funding round and stick to it. It helps create a sense of urgency for potential investors. If I could go back in time, I would have raised more funding at the beginning before launching. After a few years in the market, some sales success is desirable, otherwise you will face a tough road.
What is it that many aspiring entrepreneurs think they need when in fact they don’t?
It may sound crazy, but I don’t think you need to spend a lot of time on a business plan before you start. Create a framework that you can use to get on track, and then be agile enough to adjust on the fly. As Mike Tyson said, “Everybody has a plan until they get punched in the mouth.” I think being able to think on your feet, respond to changing market conditions, and use your intuition is much more valuable to your business than a comprehensive plan that took 12 months to put together. When starting a new venture, don’t stray too far from your path. I had years of experience in the industry before starting my two companies, so although there were new challenges, I understood the core of what we were trying to do. Understand that failures and mistakes are fuel for growth and that you can do better next time.
What is your ultimate goal for the brand?
“By the end of the first six months of 2024, we have already surpassed our previous year’s sales and are on track to meet our full-year sales goals. We are excited to release our first line extension, Pineapple Rosé-Ade, in August. We’ve expanded into two new states this year, Idaho and Arizona, and both have exceeded our expectations. As we always say about Rosé-Ade, it’s truly the perfect daytime drink.”
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