How We Quit Our 6-Figure Jobs to Start a Multimillion-Dollar Hard Seltzer Business

Fortune Magazine

3 Jul 202406:19

Summary

TLDRSea Row, co-founder of Lunar Seltzer, shares the journey of creating a craft seltzer brand inspired by Asian fruits. With flavors like Korean Plum and Yuzu, Lunar fills a gap in the market between domestic beers and imports. Sea and co-founder Kevin Wong's passion for business and representation led to a successful launch during COVID-19. Their grassroots approach, including direct engagement with retailers and consumers, resulted in rapid growth and a million-dollar milestone, showcasing the power of authenticity and relationship-building in business.

Takeaways

😊 Ci Ro is a 33-year-old co-founder of Lunar Hard Seltzer, a local craft hard seltzer made with real Asian fruits.
🍑 Lunar offers flavors like Korean Plum, Yuzu, Lychee, and Passion Fruit, available at retailers like Whole Foods, Trader Joe's, and Target.
🏫 Ci Ro and his co-founder Kevin Wong met at the University of Virginia and have backgrounds in tech startups and investment banking.
💡 They were inspired to create a business reflecting their Asian-American identities amidst growing representation in media and arts.
🍹 The idea for Lunar was conceived in early 2019 during a conversation over drinks, recognizing a market gap between domestic beers and imports.
🛠️ The development of Lunar involved extensive R&D, home brewing in their apartment, and sourcing authentic flavors from their cultural backgrounds.
🌍 They conducted taste tests and surveys with friends and colleagues to refine their product and ensure it was scalable and authentic.
🚀 Lunar's initial batches sold out quickly online, and their popularity on social media signaled a strong market demand.
🏢 During the COVID-19 pandemic, they personally promoted Lunar by visiting local Asian-American restaurants and retailers in New York.
📈 The success of Lunar was bolstered by building personal relationships with retailers, leading to quick placements in stores like Trader Joe's.
🎄 The Korean Plum flavor was refined with the help of Ci Ro's mother, ensuring it met their high standards and cultural authenticity.

Q & A

Who is Sea Row and what is his role in Lunar Seltzer?
-Sea Row is the co-founder of Lunar Seltzer, a local craft seltzer brand that uses real Asian fruits to create flavors like Korean Plum, Yuzu, and passion fruit.
What is unique about Lunar Seltzer's flavors?
-Lunar Seltzer's flavors are unique because they are inspired by real Asian fruits, which makes them sweet but not overly sweet, reflecting the founders' Asian-American identities.
Where can Lunar Seltzer be found for purchase?
-Lunar Seltzer can be found at retailers such as Whole Foods, Trader Joe's, Target, and online retailers like 99 Ranch and Hmart, primarily in Massachusetts, New Jersey, and New York.
How did Sea Row and Kevin Wong meet?
-Sea Row and Kevin Wong first met on the first day of college at the University of Virginia, where they were both out-of-state students.
What career paths did Sea Row and Kevin Wong initially take before starting Lunar Seltzer?
-Kevin started his career in investment banking in New York, while Sea Row took a detour to grad school and later joined tech startups in New York.
What motivated Sea Row and Kevin Wong to start their own business?
-They both had a desire to be their own bosses and to have control over their own destinies. They were looking for opportunities to create a business that reflected their identities as Asian-Americans.
How did the idea for Lunar Seltzer come about?
-The idea for Lunar Seltzer came about during a conversation over drinks, where they noticed a gap in the market between domestic beers and imported seltzers, and decided to fill that space with a product that represented their Asian-American heritage.
What was the initial investment to start Lunar Seltzer?
-Sea Row and Kevin Wong bootstrapped the initial investment of approximately $150,000 to start Lunar Seltzer.
How did Sea Row and Kevin Wong develop the flavors for Lunar Seltzer?
-They developed the flavors by sourcing fruits and ingredients from grocery stores and trips to Asia, then experimenting with different formulations every two weeks, assessing taste, authenticity, and scalability.
What was the process like for Sea Row and Kevin Wong in terms of market research and product testing?
-They hosted tasting parties with close friends, colleagues, and acquaintances, and conducted surveys to gather feedback on the flavors, asking participants to guess the flavor, rate it, and provide recommendations.
How did Lunar Seltzer achieve its first million in sales?
-They achieved their first million in sales by pounding the pavement in New York during the COVID-19 pandemic, visiting local Asian-American restaurants, tastemakers, chefs, and retailers, building relationships and getting their product on the shelves.
What role did Sea Row's mother play in finalizing the Korean Plum flavor?
-Sea Row's mother played a critical role in finalizing the Korean Plum flavor by taste-testing different variations and choosing the one that she thought was the best, which is the formulation they still use today.
How did the encounter at Long Island City Trader Joe's contribute to Lunar Seltzer's success?
-The encounter at Long Island City Trader Joe's, where Kevin overheard staff members praising Lunar Seltzer, led to an immediate introduction to the manager and a quick decision to carry the product, showcasing the importance of building relationships and personal connections.

Outlines

00:00

🌟 Founding Lunar Hearts Selter: The Beginning

Sea Row, 33, introduces herself as the co-founder of Lunar Hearts Selter, a local craft seltzer made with real Asian fruits, available at various retailers across Massachusetts, New Jersey, and New York. She recounts meeting her co-founder, Kevin Wong, at the University of Virginia, and their respective career paths in investment banking and tech startups. Both had a desire to start their own business, inspired by their Asian-American identities and the growing representation in media and arts. Over drinks, they identified a market gap between domestic beers and imported seltzers, sparking the idea for Lunar.

05:01

🚀 From Idea to Execution: The Lunar Journey

In early 2019, Sea and Kevin began the two-year process of developing Lunar, working on it while maintaining their full-time jobs. Sea, earning $130,000 annually at a tech startup, juggled work with Lunar’s development. In May 2021, after Lunar's launch, she left her job to fully commit to the venture. They invested $150,000, starting with home brewing in their small apartment and learning through online resources. The initial focus was on creating flavors from their Korean and Taiwanese backgrounds, using authentic fruits and ingredients, and refining the recipes through rigorous testing and feedback.

🍹 Perfecting Flavors and Gaining Traction

Sea and Kevin sourced fruits from grocery stores and trips to Asia, experimenting with flavors that resonated with their childhoods. They held tasting parties and conducted surveys to refine their recipes, balancing taste authenticity with scalability. Despite brewing in secret, they persisted, and their first batches sold out quickly online. The positive response on social media validated their efforts, prompting them to intensify their production and marketing. They achieved their first million dollars in sales by directly promoting Lunar to local Asian-American restaurants and retailers, leveraging personal connections.

🛒 Breaking Into Retail: The Trader Joe’s Success

Kevin's fortuitous encounter at a Trader Joe’s led to Lunar being stocked in the store. Hearing staff praise Lunar, he introduced himself as a co-founder, leading to a quick product adoption. This exemplified the power of personal relationships and being present in the community. Customers discovered Lunar at Trader Joe’s, reinforcing the importance of retail presence. The Korean Plum flavor, particularly challenging to perfect, was finalized with the help of Sea’s mother. Her critical input ensured the authenticity of the flavor, which remains a staple in their product line.

Mindmap

Keywords

💡Lunar Hearts Selter

Lunar Hearts Selter is a local craft hard seltzer brand co-founded by Sea Row and Kevin Wong. The brand focuses on incorporating real Asian fruits into their beverages, offering flavors such as Korean Plum, Yuzu, Lychee, and Passion Fruit. The unique blend of flavors is a reflection of the founders' Asian-American heritage and is positioned as a sweet but not overly sweet alternative in the hard seltzer market.

💡Asian fruits

Asian fruits such as Korean Plum, Yuzu, Lychee, and Passion Fruit are integral to Lunar Hearts Selter's identity. These fruits are used to create distinctive flavors that resonate with the founders' cultural backgrounds. For instance, Sea Row's Korean heritage influences the inclusion of Korean Plum and Yuzu, while Kevin Wong's Taiwanese heritage is reflected in the use of Lychee and Passion Fruit.

💡Retailers

Retailers like Whole Foods, Trader Joe's, Target, 99 Ranch, and Hmart are mentioned as distribution points for Lunar Hearts Selter. These partnerships indicate the brand's reach and accessibility across various regions, particularly in Massachusetts, New Jersey, and New York. The presence in these retailers underscores the brand's successful market penetration and consumer acceptance.

💡University of Virginia

The University of Virginia is where Sea Row and Kevin Wong first met. Their meeting as out-of-state students who lacked local friends laid the foundation for their long-term partnership. This relationship eventually evolved into their collaboration in founding Lunar Hearts Selter, showcasing the importance of their shared history and mutual understanding.

💡Tech and finance careers

Both founders initially pursued careers in tech and finance before starting their business. Kevin Wong worked in investment banking in New York, while Sea Row joined tech startups after attending Carnegie Mellon for grad school. Their professional backgrounds in these demanding fields highlight their diverse skill sets and the calculated risk they took in transitioning to entrepreneurship.

💡Asian-American identity

The founders' Asian-American identity plays a significant role in their business vision. They aimed to create a product that celebrates and represents their cultural heritage, particularly in an industry that lacked such representation. This cultural authenticity is a cornerstone of their brand, influencing everything from product flavors to marketing strategies.

💡Home brewing

Home brewing is how the founders initially experimented with and developed their hard seltzer recipes. Operating from their small East Village apartment, they researched and tested various formulations. This hands-on, DIY approach underscores their dedication and innovation in crafting unique flavors that eventually formed the basis of Lunar Hearts Selter.

💡Scalability

Scalability was a critical factor in their product development process. Beyond ensuring that their flavors tasted good and were authentic, the founders needed to find scalable sources for their ingredients. This practical consideration was essential for transitioning from small-scale home brewing to a commercially viable product available in major retailers.

💡Market validation

Market validation occurred when their initial batches sold out quickly and they gained traction on social media. This positive reception was a key indicator that there was strong consumer demand for their product. Such validation gave the founders confidence to invest more heavily in their business and expand their operations.

💡Trader Joe's activation

The activation at Trader Joe's, particularly in Long Island City, was a significant milestone for Lunar Hearts Selter. Kevin Wong's encounter with store staff who were already discussing their product led to an expedited process of getting their seltzer on the shelves. This episode illustrates the impact of personal connections and the importance of seizing opportunities in retail distribution.

Highlights

Sea Row is the 33-year-old co-founder of Lunar, a craft seltzer brand using real Asian fruits.

Lunar seltzers are available at retailers like Whole Foods, Trader Joe's, Target, and online platforms such as 99 Ranch and Hmart.

Sea and co-founder Kevin Wong met at the University of Virginia and both pursued careers in finance and tech before starting their business.

The idea for Lunar was conceived in early 2019, with 2 years of R&D and preparation while Sea was still working at a tech startup.

Sea made about $130,000 in salary but decided to leave his job in May 2021 to focus on Lunar after its successful launch.

Lunar was bootstrapped with $150,000, starting with home brewing in a small East Village apartment.

The founders sourced fruits and ingredients from grocery stores and trips to Asia for authentic flavors.

They tested different formulations every two weeks, assessing taste, authenticity, and scalability.

Lunar hosted tasting parties and surveys to gather feedback on their seltzer flavors from friends and acquaintances.

The initial batches sold out quickly on online platforms, indicating a strong market response.

Lunar made its first million by focusing on New York, especially targeting Asian-American restaurants and retailers.

Building personal relationships with retailers was key to getting Lunar on the shelves.

A chance encounter at a Trader Joe's led to Lunar being carried in the store within 3 weeks.

Consumers have discovered Lunar through word of mouth and positive experiences at retailers like Trader Joe's.

The Korean Plum flavor was particularly challenging to perfect, with Sea's mother ultimately choosing the final formulation.

The success of Lunar highlights the importance of authenticity, personal connections, and persistence in the beverage industry.