For many entrepreneurs, the dream isn't just to start a business, but to build something that thrives independently. This journey often involves unconventional choices, especially when a new venture is navigating tight budgets and skepticism. One beverage company faced these exact hurdles when launching unique wine-based spirits, making strategic decisions that not only kept them afloat but ultimately propelled them to success. From a surprising distribution method to a compelling sales pitch that resonated deeply with restaurants and bars, their story offers valuable insights for any business owner looking to innovate and capture new markets.

From Job to Business: The Entrepreneurial Mindset

The foundation of any successful venture lies in the mindset of its founders. As one entrepreneur aptly put it, "if you own a business and you have to go to work every day to make that business function, then you have a job." This distinction emphasizes the goal of building a self-sustaining entity, rather than simply creating employment for oneself. Approaching their wine-based spirits company, the founders consciously aimed to build a true business, not just another job, a philosophy that guided their early, critical decisions.

Plastic Bottles: A Strategic Necessity for Startup Growth

When the company began, operating as a "struggling new business," distributors showed little interest in their innovative products. This forced them into self-distribution across Florida. Shipping glass bottles across the state presented significant challenges: they were heavy, costly to transport, and prone to breakage. The solution was pragmatic and unconventional: plastic bottles.

This decision was purely a "dollars and cents decision" when they had "two nickels to rub together." A case of plastic bottles weighed only 28 pounds, making it significantly less expensive to ship via UPS or FedEx. Crucially, plastic bottles didn't break during transit, a common issue with glass when boxes are handled roughly. While some of their higher-quality products eventually transitioned to glass, plastic remains the container of choice for their well drinks due to another unexpected benefit for restaurants and bars.

When they drop a bottle and it's plastic, they don't lose it. When they drop glass, they lose it.

Initially, some accounts were hesitant about plastic, but reorders confirmed its value. Bartenders dropping plastic bottles meant no lost product or money, a real saving for establishments.

The Three-Fold Pitch: Revolutionizing Restaurant & Bar Profits

The real breakthrough came with their strategic sales pitch to restaurants and bars, highlighting the unique opportunities their wine-based spirits offered. The pitch focused on three core benefits:

• **High Profit Margins**: Establishments can serve premium cocktails with only a beer and wine license, avoiding the substantial expense and insurance costs associated with a full liquor license. This allows them to introduce high-profit items to their menu without a major investment.
• **Increased Customer Retention**: Many customers, like the hypothetical Joe and Cindy, might frequent other establishments for specific cocktails such as margaritas or Bloody Marys. By offering these favorite drinks with wine-based spirits, restaurants can ensure these patrons return more often, increasing their regular business.
• **Attract New Patrons**: First-time customers are drawn in when they see a diverse cocktail menu, even if the establishment only has a beer and wine license. This expands the customer base and encourages repeat visits from those who appreciate having their preferred drink options available.

Beyond these three pillars, an additional benefit emerged: happier waitstaff. Selling a $10-$12 cocktail instead of a $6-$7 beer or glass of wine leads to higher check averages and, consequently, bigger tips. This fosters a more motivated and satisfied service team.

The Ultimate Test: Blind Taste Test Validation

The lingering question for any beverage product is, inevitably, taste. To address this, the company adopted an exhaustive approach to sales presentations. They literally "move in" to a restaurant with "every bottle and every mix," encouraging owners, staff, and even family members to participate in blind taste tests.

A common demonstration involves comparing their "rumbero" (a rum-type wine-based spirit) against actual rum. While straight, traditional rum might be stronger, when mixed into a drink like a piña colada, the results are consistently surprising. "Nobody can tell which is which," demonstrating that their premium blend wine-based spirits deliver the same great taste experience in cocktails, making them a viable and profitable alternative.

Building a Legacy: Purpose Beyond Profit

The entrepreneurial journey, for these founders, was always about more than just making money. It was about fulfilling a deeper purpose, echoing a sentiment from their father, Orestes Santos.

We didn't come to this country to mess around. We came here for a reason. We didn't come here to take, we came here to give.

Today, they find immense pride in having created a business that not only employs people but also genuinely helps its customers. Small, 'mom and pop' restaurants and bars often rely on the profit margins from serving these premium blend cocktails to stay in business. In fact, some of their most successful clients eventually acquire a full liquor license but continue to purchase the wine-based spirits for their well drinks, a true testament to the product's value and the company's foundational mission.

Frequently Asked Questions About Wine-Based Spirits

What is the primary benefit of using wine-based spirits for a restaurant or bar?

The main benefit is the ability to offer high-profit cocktails without the need for an expensive full liquor license or its associated insurance costs, allowing establishments with only a beer and wine license to expand their beverage menu significantly.

Why did the company initially choose plastic bottles for distribution?

As a new, struggling business self-distributing across Florida, plastic bottles were a cost-effective choice because they weighed less, were cheaper to ship, and wouldn't break during rough handling by carriers, saving money on shipping and lost product.

How do wine-based spirits compare in taste to traditional liquor in cocktails?

In blind taste tests, especially when mixed into popular cocktails like piña coladas, customers and owners often cannot distinguish between wine-based spirits and their traditional liquor counterparts, confirming they deliver a comparable taste experience.

Do wine-based spirits affect waitstaff tips and overall check averages?

Yes, by allowing establishments to sell cocktails for $10-$12 instead of $6-$7 beers or wines, wine-based spirits increase the average check size, leading to higher tips for waitstaff and happier employees.

What is the cost comparison for wine-based spirits?

The cost per liter, approximately $8 to $10, varies significantly by state due to differing alcohol taxation, not sales tax. For example, a case of their rumbero costs $10 in Florida for alcohol tax versus only 63 cents in California.

Key Takeaways for Beverage Entrepreneurs

The journey of building a beverage business is fraught with challenges, but as this company's story demonstrates, creative solutions can lead to remarkable success. From leveraging plastic bottles for smart distribution to crafting a compelling value proposition for bars, their experience underscores the power of adaptability and understanding customer needs. The focus on providing high-profit, accessible cocktail options for establishments with limited licenses has not only benefited their clients but also forged a path for their own growth. Many of their best customers eventually obtain full liquor licenses but continue to purchase their wine-based spirits for their well drinks, a testament to the product's enduring value and profitability. This insightful discussion on navigating the complexities of the wine and spirits industry is just one example of the expert advice you can find on The Best 5 Minute Wine Podcast.