Just a few weeks after his former colleague Jeff Arnold joined LALO Spirits as its president and COO, another alumnus of Texas-based Waterloo Sparkling Water’s management team is entering the beverage alcohol category with the launch of Country Luau, a new spirits-based ready-to-drink cocktail line set to hit stores later this month.
The brand was created by former Waterloo marketing VP Adam Kost, who spent nearly two decades in the beverage industry working for large conglomerates such as Anheuser-Busch InBev (ZX Ventures), Heineken and Pernod Ricard. Seeking to scale down his job, his career path eventually took him to fast-rising Waterloo in 2020, where he was charged with running innovation, marketing and ecommerce just months before the company was acquired by a group of investment firms for an undisclosed fee that October.
Inspired by his experience working at a startup, Kost is now looking to take on RTD cocktails, which he described as “the most disruptive event in the alcohol category that I’ve seen in my entire career.” Yet his brand itself isn’t out to revolutionize the segment; rather, Country Luau is about “fun riffs on classic cocktails and tropical flavors” captured in an approachable (5% ABV) and convenient package geared toward outdoor refreshment. The initial lineup will feature four SKUs — Strawberry Daq Shack (white rum), Yuzu Ranch Water (blanco tequila), Mango Mosa (vodka) and Pineapple Jalapen-Y’all (vodka) — each made with just three ingredients: spirits, natural flavors and sparkling water. Each 12 oz. can contains 2 grams of sugar and 100 calories. Single flavor 4-packs will retail for $12.99 and variety 6-packs at $16.99.
Kost said he sees his brand as differentiating in its “emotional” approach. He wants Country Luau to “have more fun with flavor than anybody else in the category,” while ticking the expected high quality benchmarks along the way.
“From my background working in the hospitality and culinary worlds, I really started to see flavors like memories,” said Kost. “With our Yuzu Ranch Water … those (products) can create good new memories with a newer flavor in yuzu. And then with our Strawberry Daq, we really wanted to make it taste and smell just like that can of frozen daiquiri mix that you used to steal from your parents. And we kind of joke that it’s not a cocktail, it’s a time machine.”
The brand’s connection with music adds a philanthropic element to that emotional approach. With the drink being manufactured in Nashville, and with Kost being a Texas-native based in Austin – which boasts the title of “Live Music Capital of the World” – he said the decision to donate 2% of all annual sales towards musicians and nonprofit organizations that support them aligned with both its business and social impact goals.
“It was vital for me to create a brand that is both personal and had a clear purpose, and our mission at Country Luau is to bring people together,” said Kost. “And I know that great music, good friends, and obviously a tasty canned cocktail can do that really well for us. And from a consumer perspective, giving back to local music economies, you know, really aligns with our consumers’ passion points and lifestyle.”
Pairing quality liquid and a cause is designed to help Country Luau stand out in a booming category: according to NielsenIQ data, off-premise dollar sales of RTD cocktails increased 126% through October 2, 2021. While hard seltzers have cooled after a period of rapid growth, RTD cocktails have evolved and broadened in their scope of offerings, creating variety that can capture more consumers. The segment is projected to grow at 11.5% CAGR between 2019 and 2024.
For its initial rollout, Country Luau will be available at retailers in its home markets of Texas and Tennessee (via Ajax Turner), as well as nationwide via ecommerce.