Hella Cocktail Co., known for its bitters and mixers, is making a foray into bev-alc with a ready-to-drink (RTD) line debuting this week, Hella Margaritas.
Anchored by the brand’s signature product, cocktail bitters, Hella Margaritas marks the company’s shift from over a decade of tinkering with cocktail ingredients to selling full-proof libations. The 5.9% ABV 12 oz. cans feature additive-free tequila, Hella bitters and come in three flavors: Classic Lime Margarita, Pineapple Margarita and Habanero Margarita. Four-pack SRP is set at $15.99 and will run as low as $12.99 on promotion.
The line brings with it fresh branding that slightly updates the company’s logo, which will soon extend to its roster of mixers, bitters and Bitters & Soda line as well. Each 4-pack and the cans themselves sport different bold color schemes that mark a delineation between flavors, a design move based on retailer feedback that other RTD lines don’t differentiate packaging enough between SKUs.
The rebranding marks a new chapter for the New York-based company as it takes on the challenge of crossing over into a crowded bev-alc category. It joins other brands like Betty Buzz and Fever Tree as they expand from adult non-alc products and alternatives into a rapidly transforming RTD market. Spirit-based RTD cocktails grew off-premise sales +27.9% in the last 52 weeks ending March 30 versus the same time period last year, according to NIQ, and tequila cocktails have been a fast-moving segment.
“Our identity has always been about cocktailing, but our strategy as an early stage company has been to niche down in order to make the greatest impact with smaller resources,” co-founder Eddie Simeón said.
Now was the time to make an impact on prepared tequila cocktails, said Simeón, based on what he sees as a low bar set by brands like White Claw. The new line aims to be an antidote to brands that “don’t care about flavor” or zero-sugar styles of RTDs, he said. While still relatively low in sugar and calories, the priority was to not compromise on flavor.
“We’ve always been known for flavor, starting with the bitters, which is an ingredient that imparts flavor, personalization and also binds flavors together,” he said.
Selecting this first round of margarita flavors was based on data and instinct: The company’s Habanero Margarita Mix is its most popular SKU, while a pineapple margarita felt the most authentic to Simeón’s Mexican heritage.
Hella Cocktail Co. will build on its national fanbase and retail footprint, but begin distribution in Simeón’s hometurf of California. Loyal fans received exclusive access to the new products first, which has boosted social media engagement, said Simeón. The company will distribute with Southern Glazer’s Wine & Spirits coastal Pacific arm, which can eventually distribute into 14 states. But for now, the Hella team will be focused on specific retailers.
“Fifty percent of RTD cocktail sales in L.A. come from about 200 independent liquor stores,” Simeón said. “So while we’re focused on chain partnerships and the right kind of on-premise accounts, it’s the independents up and down the street that we want to focus on working with right now.’