Patrón Vets’ Round 2 Spirits Debuts First Brand: Weber Ranch 1902 Vodka

In January, SND exclusively reported the creation of Round 2 Spirits by Patrón veterans John Paul DeJoria, Ed Brown, Lee Applbaum, and Dave Wilson, and former Southern Glazer’s exec Brad Vassar. Today, Round 2 is launching its first product, a vodka distilled from 100% Blue Weber agave called Weber Ranch 1902 ($28 a 750-ml.). Handled nationally by Southern Glazer’s, the new entry is debuting first in California, Texas, Florida, and New York, with a full rollout to follow shortly. SND executive editor Daniel Marsteller spoke with Applbaum, who serves as Round 2’s president and COO, ahead of the launch.

SND: What’s the broad proposition for Weber Ranch as it rolls out to consumers?

Applbaum: We had a couple of criteria for our first brand, and one of them was to be truly disruptive, not just iterative like a different flavor or some esoteric water source. And number-two, it had to be scalable. This wasn’t going to be a passion project for us. Vodka is still the largest spirits category by volume in the U.S., and there are obviously some juggernaut brands, but we felt very strongly that there hasn’t been a truly disruptive product in a very long time.

We’ve spent our lives looking at how to craft exceptional spirits from Blue Weber agave. And that’s the light bulb that went off for us: if Blue Weber agave can make spectacular Tequilas and agave spirits, why can’t we apply that to making an exceptional vodka and a truly disruptive one?

The flavor profile had to meet the needs of vodka drinkers. They don’t want earthy cooked agave and herbacious notes. If that’s the case, they’re going to drink Tequila. But what we knew was that the smooth, velvety profile and viscosity that you get from agave, we could also apply to vodka.

SND: How did you arrive at the $28 SRP for the brand?

Applbaum: There’s been massive price compression in the vodka category for years now, and we’re very thoughtful about the fact that we have to earn the consumer share of wallet, and we have to earn their trust with the brand. It is a disruptive proposition, and that means that we have to be price competitive, but we also have to acknowledge that this is crafted from a superior ingredient. It takes up to seven years to grow agave versus a few months for corn or wheat, for example. We distill it in Mexico and then we bring it over to Texas and we distill it again, so it’s much more expensive to make. The packaging is very premium. So about $27.99 for a 750-ml. on-shelf is above some of the leading price points in the category, but not so far above that it’s a bridge too far.

SND: What’s the target demographic?

Applbaum: We think we have a proposition that addresses both the classic longstanding traditional vodka consumer who tends to skew a little bit older, and then that younger, maybe more adventurous, early-adopter agave consumer. It works in vodka cocktails like the Martini, Vodka Soda, Bloody Mary, and Espresso Martini and also the agave cocktail side like the Paloma and the Ranch Water. I think you’re going to have a very wide appeal across demographics for both of those categories.

SND: Are you targeting both on- and off-premise early on, or specific types of accounts?

Applbaum: The on-premise is going to be a really important way for consumers, particularly loyal vodka consumers, to try it and make that pivot from what they’re drinking today. But at our price point, and given that for the vodka consumer off-premise is a critical channel, we’re opening with a 750, a 1-liter—which is for the on-trade primarily—and a 1.75. So we’ll have all three sizes specifically to be able to cater to both the on- and the off-trade.

SND: What marketing initiatives are backing the launch?

Applbaum: We are going to be a very digital-first brand, whether that is paid digital or earned. We have the ability to hyper-target consumers, whether they’re vodka consumers, agave consumers, agave-curious consumers, or cocktail consumers. There’s a very active online community around agave spirits, and we’re going to use advanced digital tools to make sure that we’re getting in front of them. Events and experiential activations will also play a big part.

SND: What kind of case volume are you expecting the first year?

Applbaum: As much as we can? We bought the distillery north of Dallas, and we’ve been significantly investing in it from day one to build up its capacity to scale with consumer demand. This vodka is more difficult to craft, quite frankly, than other vodkas especially, and it is more labor-intensive. So we needed a distillery and a team that could handle the ability to scale up. We’re going to launch in the four states and then through the summer and into the fall we want to have full national distribution. The consumer will ultimately vote, so I don’t know what that volume looks like, but we’re here to build a disruptive brand at scale. That’s our goal and our ambition.

Tagged : Round 2 Spirits, Weber Ranch 1902

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