In 2017 Alix Peabody launched Bev, a Los Angeles-based canned wine and spritz brand, by cashing in her 401(k) to purchase 300 gallons of rosé. Six years later, Bev’s sleek cans are joining the lineup of ready-to-drink (RTD) beverages owned by E. & J. Gallo, which acquired the company earlier this month.
For Peabody, it was a natural transition that will enable the brand to scale and fulfill its mission of making the alcohol industry more inclusive.
“As a beverage startup, I think there’s really only so much you can do without raising large, large amounts of capital to keep up with demand and inventory,” she said.
But Peabody did catch the eye of start-up investors, which helped propel the bootstrapped company. After launching the product at women-centered backyard parties, Peabody went all in on unapologetically feminine, bright cans of rosé scribbled with “made by chicks,” challenging an industry long dominated by men. That break-the-glass mentality earned it attention from the Founders Fund, the San Francisco-based venture capital firm started by billionaire Peter Thiel, which led Bev’s seed round of $7 million in 2019.
Two years later, the company raised another $14 million from Vice Ventures founder Catharine Dockery, Canaan Venture Capital, and Justin Lubliner (artist Billie Eillish’s manager).
After selling to E. & J. Gallo, Peabody now has the opportunity to push the brand into more hands, backed by a greater salesforce and distribution muscle.
“Gallo is just gonna be able to take it to a level that we wouldn’t necessarily be able to do by ourselves,” she said. “They’re the best in the business when it comes to execution, in my opinion.”
The wine and spirits giant has certainly found success in the ready-to-drink category with leading vodka seltzer High Noon. The announcement also follows Spirit of Gallo’s acquisition last month of RTD canned cocktail Fishers Island Lemonade.
“It’s a focus for them to really expand on RTDs and grow that section— and we’re in the middle because we’re obviously in a can, very accessible, easily transportable, but our core products are wine,” Peabody said.
It was a logical transition to approach E. & J. Gallo, which has held exclusive U.S. distribution rights for Bev since 2021. That relationship initially blossomed after Stephanie Gallo, CMO of E. & J. Gallo Winery, approached Peabody about aligning with a female-empowerment centered brand that was tracking well with the next generation of drinkers.
Bev’s growth can be attributed to several factors, but one in particular may be striking a chord with consumers in one of the most easily shipped alcohol categories. The wine industry’s direct-to-consumer shipping privileges, coupled with the pandemic’s boost to RTDs kicked off the company’s growth rate of 200% per month beginning in March 2020.
“I picked wine because of the direct-to-consumer capabilities, because I realized that it [bev-alc] was a very difficult industry that was going to be very hard to break into,” she said.
Boasting zero-sugar and “naturally crafted” varietals, Bev is part of a group of wine brands energizing what is otherwise a declining category for younger drinkers. Canned wines on the market grew from roughly 40 brands in 2016 to about 230 in 2020. Between 2017 and 2021, volume sales for canned wine in NIQ-tracked channels increased more than 3,800%. The brand also launched lower-ABV spiritzes that inch closer to its spirit-based or mindful drinking-focused canned counterpoints.
While long-time wine enthusiasts may not ditch the bottle for cans, Peabody is hopeful Bev will continue to provide an accessible option for any drinker “to celebrate themselves.” The brand’s number one draw has been its authenticity, she said.
“We were a brand before we were a product. We have a lot of supporters of the brand, and some that don’t even necessarily drink but they still support the mission,” she said. “And my hope is that over time, we’ll be able to create products for those people as well.”
Peabody initially conceptualized Bev as a media company that addressed topics of inclusivity and diversity in the alcohol industry. That point of view garnered thousands of Instagram followers before even launching the product. It’s a tone that aligns with industry analysts who cite a need for introductory wines to provide moments that draw consumers into learning about and enjoying wine— and appeal to their social and environmental values.
“A big obstacle for the industry is also accessibility,” she said. “Wine can be intimidating. Definitely part of the appeal of Bev was making it easy so there’s no decision fatigue or feeling overwhelmed.”
The founder will stay on to help direct the brand and mission, but the opportunity now is for Gallo to expand deeper into markets like Florida, New York and into grocery channels. The brand will also build on alternative on-premise channels following high performance in festivals and channels such as AMC movie theaters.
“My hope is that we can also build out different forms at some point or just really make it more accessible and make it be able to scale and change with the times and trends,” she said.