When Los Angeles-based Jiant launched its hard kombucha in the summer of 2019, the company had three full time employees, including its co-founders, Larry Haertel Jr. and Aaron Telch.
Now, producing hard tea in addition to hard kombucha, Jiant boasts nearly 20 sales team members, and has added craft beer veterans such as Andrew “Mac” MacLeod as senior director of national accounts (formerly at New Belgium Brewing), and David Macon as chief sales officer (formerly at New Belgium and Firestone Walker).
The additions are part of the “next phase” for Jiant, as the company evolves into a “modern alcohol brand,” Haertel and Telch told Brewbound.
News of Macon’s hiring was announced last week. In April, Macon left his role as chief sales officer at Firestone Walker, after eight years with the Paso Robles-headquartered craft brewery. By May, he was having his first call with Jiant.
“Hiring Dave is a big milestone for us,” Telch said. “Larry and I did not come from the beer world before, so we have a lot to learn from Dave. And he’s gonna bring a lot of leadership to this team that we’ve built.”
Jiant is “far and away the smallest company” Macon has ever worked for. He told Brewbound he never pictured himself working in the hard kombucha segment, but the quality of the liquid sold him on the position. He said he sees his hiring as a “signal to the marketplace” that Jiant is ready to take the “next step” in its development.
Macon will help Jiant continue its growth and expansion, as well as help organize its distribution network, and define what its “sales identity” is as it becomes a larger entity.
“[Jiant’s] marketing identity is very well solidified; the brand messaging is good,” Macon said. “There’s some things that we need to work on in terms of tools for the sales team, but we’re going to build that identity.
“We’re going to build that sales culture and continue on the journey of aligning ourselves with the best possible distribution network for us, that makes sense and will help us springboard into the future.”
Jiant’s existing distribution partnerships are “a little bit all over the place,” Macon said, with no “definable” network.
“When you’re in entrepreneurial startup mode, and you’re still trying to build your credibility, oftentimes – and I have been through this particularly with Firestone in some of the eastern markets – it’s basically who will take the call and who’s willing to give you a chance,” Macon said.
Now, Jiant has “turned a corner,” progressing past its startup phase, allowing the company to now organize its network “in a more intentional way.” Asked if that alignment includes the restructuring of Jiant’s existing network, Macon said “nothing is off the table.”
In 2021, Jiant grew production year-over-year (YOY) by triple digits. The company plans to do so again in 2022, so far this year growing an average of +20% month-over-month. Its hard kombucha is now available in 17 states. Next month, it will expand into the Pacific Northwest for the first time with three additional states. To support the expansion, the company is hiring a national accounts manager for its western division who will report to MacLeod.
Last summer, Jiant tested its first hard tea in its home market of Southern California. This summer, the company has put a greater focus on building out the brand, with multiple SKUs in several markets.
Having fermented between 50 and 75 different teas in the company’s existence, Jiant defines itself as “experts in using teas and botanicals to create really flavorful, gluten free, clean ingredient alc-beverages,” Telch said. While that journey started with hard kombucha, he said the knowledge easily carries over to hard tea.
“We don’t really see ourselves as a kombucha company,” Haertel added. “We see ourselves as a modern alcohol brand.”
Such a company caters to an emerging consumer looking for “non-traditional” and “better for you options” within the bev-alc space – things that are accessible in “every other consumer category,” Haertel continued.
Macon sees “nothing but blue sky and a hugely long runway” for Jiant’s hard tea line, in a segment that is primarily dominated by one large player: Boston Beer Company’s Twisted Tea.
“Boston Beer Company is playing a very different game than we’re trying to achieve,” Macon said. “It’s a massive opportunity that they have created, which is why you’re seeing people rush into the space.”
Jiant’s 5% ABV hard tea offering – available in flavors such as Mango Lime, Raspberry Mint, and Blood Orange Grapefruit – attempts to cater to a more ingredient-conscious consumer than Twisted Tea drinkers, with 100 calories and 1 gram of sugar.
A big focus for Jiant going forward is getting its hard tea “on equal footing” with its hard kombucha “both in terms of distribution, but also in the eyes of [its] consumers,” Haertel said, with the hope to “chip away at what Twisted Tea has been doing.” To make such an impact, Jiant has to focus on “brand positioning” and “messaging,” Macon said.
“[It’s about] can we as a company at Jiant really get to the right consumers that are there, that are really interested in something: A. that’s quite different; B. quite transparent; C. not too shabby for you,” Macon said.
Last month, Jiant also released its first contribution to the ready-to-drink (RTD) canned cocktail trend with its cocktail-inspired Mai Tai Hard Kombucha. Brewed with organic Dragonwell green tea, pineapple juice, orange juice, dark cherry juice, lime juice, coconut water and cardamom, the 8% ABV hard kombucha could stand up to “any Mai Tai RTDs that have entered the market, just from a liquid perspective,” Telch said.
While the offering is meant to give a “cocktail-like experience,” the company said it has no plans to create a spirits-based offering.
“We have really looked at what is driving these [RTD] trends,” Haertel said. “Is it a love for spirits? Are people really that lazy where they don’t want to mix their own cocktail? Or are they just looking for a trade up in flavor from the hard seltzer days? Are they looking for something that has some good ingredients, maybe a little high ABV, and offers a little bit more of a punch?”
Jiant’s blossoming sales team will focus on its channel strategy. Spring 2023 resets at chain retailers will be of particular interest, as the company plans to expand both its chain footprint, as well as the amount of its portfolio carried at retailers.
Chain grocery outlets, as well as natural food retailers, have been Jiant’s “bread and butter” for the past few years, Telch said. The company is also gaining traction in the convenience channel, particularly with its 19.2 oz. offering of 7% ABV Kiwi Strawberry Hard Tea – a natural step for a company with former New Belgium employees on its staff.
“I give New Belgium a lot of credit, they saw it before anybody else did,” Macon said. “They put that high ABV Voodoo Ranger Imperial in a 19.2 and line priced it and wow, off to the races: those numbers are pretty eye popping.
“That is where people are buying,” he continued. “They’re buying higher ABV in the c-store universe; that’s what they’re looking for. [Jiant] developed the 19.2 prior to me getting here, but it’s absolutely the right move.”
On-premise establishments are also asking for the 19.2 oz. offering, which was not part of the initial planning for the package format, Telch said.
Jiant also sells sixth-barrel and half-barrel kegs of hard kombucha for draft. While the on-premise channel is not a “main focus” for Jiant, and will “never” be a “large percentage” of business,” it’s still a “significant” channel for the company, he added.
Although Jiant does not have plans to open its own brick-and-mortar location – a route other hard kombucha competitors such as JuneShine and Flying Embers have chosen – Haertel said the company’s leadership team has “talked a lot” about the option, and it is “definitely something we’ll continue to look at and are excited about.”