Hard Seltzer News recently interviewed Dean Mahoney, CEO of ‘Merican Mule.  This is that entire interview transcript, where Mahoney shares the bootstrap origins of his brand, the importance of quality for a new RTD brand, obtaining investors for your brand, and tips for staying up on consumer trends.  He explains the company is “trying to build a brand rather than just put out another product.”

HSN: So, you and a couple of friends started this company together. Can you talk about your background, your mission, and some of the early challenges in setting up the company?

DM: Yeah, so my two friends and I — we actually met each other working in the technology space, and we were working for a pretty big Fortune 500 tech company [while] conceiving this idea. We were all living out in Los Angeles…and we saw all these copper mugs really coming out [in] bars and restaurants in the area. We kind of just realized A) these cocktails are really good, and B) we had just moved from the East Coast across the country, so we weren’t really too familiar with them. 

L.A.’s always at the forefront of setting trends, so we became, like, Mule connoisseurs right away. [We] started going around to different bars and restaurants and trying different mules. We really loved them, and then we went back home to make them on our own — like on our patio — and we realized there [were] all these ginger beers…We always tried to make it. We could never really get the formula, get the mix, as well as it was done at the bars in Los Angeles. So, that was really kind of the “aha” moment where we said why hasn’t someone just premixed everything in a can? And where we really came up with that initial concept and idea. 

I would say our mission really quickly became to make the best Moscow Mule, and that was back in 2015. So, we were so early, like just so prior to anything happening. I think Cutwater was just starting up back then as well, and [they] were a little bit further south than us down in San Diego. So, I would say the challenge — challenge-wise, you know, making a jump from [a] technology background into the beverage space, just because you have a good idea, took a lot of learning. And really, the category, obviously, is canned cocktails [that] I’m talking about, specifically, which is really catching fire right now and starting to accelerate. There wasn’t a lot of places you could go to, people that had done it before, back in 2015. So, we were just so early to market with the concept that there was just a lot of learning and a lot to figure out on our own. 

HSN: Your website said that you spent a good seven months perfecting your recipe. Could you talk about what that trial and error process was like, go a little bit deeper into what that process was like and what kept you motivated to keep going? 

DM: Yeah, that’s a great question. I guess we weren’t in a rush at that time. I think the initial thought was if this is going to work, the liquid in the can has to be [sic] beyond exceptional. We were actually looking at what was happening in the craft beer space and how craft beer was really disrupting some of the domestic beers, and they were able to justify a lot higher price point because of the ingredients they were using in their products. Being from New England, there’s a lot of great craft breweries and, obviously, in California there are as well. We kind of said we’re really not going to stop on this first iteration of formulation until it’s absolutely perfect and it tastes like a next-generation ready to drink to where it [sic] knocks people’s socks off. 

What happened was when we started developing it initially, it was me in my kitchen, and I was making my own ginger beer with yeast and all these different ingredients. I put it in my fridge and I had two-liter bottles exploding at midnight. I didn’t know what I was doing. We went in and found some folks that were essentially scientists, chemists, that really knew how to do this and knew how to do it with decades and decades of experience because there’s a lot you need to know. We worked with them and started tweaking the formula based on our tastes. We were really comparing it a lot of times to what was happening when we were going to bars and restaurants, and how they got their [sic] naturally made ginger syrup from scratch, like muddled limes and just overall aromatic experience was just superb. So, we spent quite a bit of time evaluated every single ingredient that goes into the product. we don’t use any ginger beer off the shelf or anything like that. It’s all built from the ground up, ingredient by ingredient. And yeah, even though it took a while, I think we were motivated just because we knew as soon as we started the process, it was pretty good early on. It’s just we wanted…we were perfectionists about getting it exactly where we wanted to in the end. 

HSN: Right, you wanted it to come out of the can just as high quality as if you ordered it at a restaurant and it was made in front of you. 

DM: Bartender quality. 

HSN: A traditional “Moscow” Mule is made with a vodka base. How do you find customers are receiving these other types of Mules with alternative bases such as tequila and what, in your opinion, makes a GREAT Mule?

DM: These other flavors and using the other spirits, I mean that’s our brand in a nutshell. Like, that defines our entire brand, and it’s really about innovation and creativity and thinking outside the box. And obviously, it’s no secret that we’re staying on trend with what matters to our company which is creating the best Mule. But, that doesn’t mean that it can be the only way to do it. We had seen quite a few restaurant menus branch out and do Mexican Mules that were at Mexican restaurants and Kentucky Mules…We ended up calling ours a Southern Mule, [with] bourbon-base, and we thought that was really cool to see that happening on the on-premise. But, we also thought that gave us a great opportunity to expand beyond…Our marketing shtick early on was like, “We’re not just a one-trick pony.” But yeah, people are receiving them very well. 

I think they like the….obviously, customers always like to have choice, and the reality is, you know, if you’re a tequila drinker, there’s a Mule for you. If you’re a bourbon drinker, there’s a Mule for you. If you’re a rum drinker, there’s a mule for you. So, not everyone is a vodka drinker. It just helps us reach more customers and right at the center of what matters to us is our customers’ feedback, so we take a lot of customer feedback that we get and we’ll make changes — whether that’s to the packaging and marketing and design or how we portray something on social media. Or, even down to the ingredients and how things taste. We’re always constantly taking a look at how customers respond to our brand and making changes along the way. 

HSN: How are you setting yourselves apart in the RTD market which is currently so saturated with hard seltzers?

DM: Yeah, I would say — and you’re right on, and that’s just it — we’re not a seltzer. At all. We are a true cocktail. We view what we’re doing in this world of canned cocktails as the next coming of the seltzers. The seltzers peaked, obviously, a few years ago, and then they peaked again the following year, and they peaked again last year, and there’s no question they’ll probably peak again this year. It’s growing fast, and you have a lot of entrants into the space, and when we look at it, I think you see a lot of them doing the same things and just slapping their company name on it, right? But they’re doing the same flavors, and they’re doing the same styles. They’re running the same playbook that everyone else is doing. 

You know, for us — obviously, a little more niche focusing on the Mule — I mean, the Mule is a popular cocktail, and it’s kind of our tender love and care on where we put our focus and attention and what makes it different is we’re a higher ABV, typically around seven percent. So, we’re likened to like an IPA in the beer world in terms of strength — not as low on the totem pole as a seltzer — but definitely more like having a double shot of liquor at a bar, in a can. And then, obviously, just on the brand side [sic] for us, it’s not just about putting the words “‘Merican Mule” on the can. That’s actually a very low percentage when you look at that can, of what’s actually on the can. If you look, there’s a lot of intricacy in the design, and we really feel that each flavor that we have represents like a different identity or a different feel when you’re drinking it and consuming it. We’re honestly just trying to build a brand rather than just put out another product. 

HSN: Yeah, I think you’re totally right about how cocktail RTDs are…I think they are going to be seeing a lot of success in the future because I feel like hard seltzers are pulling in beer drinkers and getting them a little more interested in cocktails and things they can just pour out of a can. 

DM: Yeah, absolutely. 

HSN: Can you talk about your new seasonal, the Pumpkin Spice Mule — what was the inspiration behind having that, and what went into its development? And how did you kind of know that you wanted to do a seasonal?

DM: Yeah, I think this is, again, where we start to differentiate a little bit from some of the seltzer companies out there because they’re a lot of times focused on a core set of products and core flavors and market testing which flavor is going to resonate the best with [their] target audience. For us, I think, we’re looking at ourselves almost like this hybrid between what the seltzer markets are doing, if you will, but in a different premium way as a cocktail and a beer company or a craft beer company, right? And, a lot of times, I think, we looked at the craft beer space and [saw] what they do and how they have a spring seasonal, summer seasonal, fall seasonal, winter seasonal. It kind of just keeps it interesting throughout the year, and we obviously have the opportunity because we’re a Mule. The reality is at the center and heart of a Mule is the ginger beer, and if you can perfect that, changing the other elements like either the liquor or the fruits [can] give it some character or identity. 

So, the Pumpkin Spice Mule, you know, having grown up in New England, [I] have [drunk] my fair share of pumpkin spice coffee and pumpkin spice lattes and things like that, so it was kind of a natural fit based on where the bulk of our distribution is today, and we did really well with it. It almost created a little frustration sometimes because stores ran out of it so fast. So, folks would reach out, and we’d be out in most markets pretty quickly. But yeah, it was a great flavor, very well received, and I would say it kind of goes back to our roots just being from the New England area. 

HSN: Yeah, having made a pumpkin pie once or twice in my time, ginger is a very important part of the pumpkin spice mix, I would say.

DM: Right? You gotta get it right. 

HSN: Can you speak to any new flavors/ideas/upcoming things on the horizon for Merican Mule?

DM: Yeah, you caught me at a pretty good time because we’re just days away here from launching our winter seasonal. It’s funny because after we made it through the fall — the Pumpkin Spice — the first natural question was, “Hey Dean, what’s your winter seasonal?” and I said, “Oh! Well, we’ve got a bunch of mules here in the pipeline, um, I didn’t really think about that…” but we had one and we think it’s just a natural fit for the holidays, for sure, and even beyond, I think, into the winter — and that’s our Fire Mule. The fire mule is made with bourbon whiskey, cinnamon and ginger, and one of the things that makes it a little bit different than our other flavors is that it’s going to be a little spicy. It’s going to have some heat element to it too, so the ginger is almost a hot ginger to match how we’re marketing it, and [I] think what you’d probably expect as a consumer. So, cinnamon is obviously big around the wintertime and Christmas and the holidays. But, I think this is a really special release that we’re putting out. We think it’s going to be big for us, and the important thing…Our other mules that we’ve done to date, it’s really important for us to [sic] focus on balance quite a bit — like, how much ginger we use and more focusing on Mules that [sic] can be really widely revered. We say, “A Mule for the masses,” or, “Having a mule for everybody.” But, this one steps out into a different world with that hot ginger to add a little bit of spice and differentiation. I think people are going to be surprised.

HSN: Sounds really good. It kind of reminds me of what craft beer [does], a take on the winter warmer. Something that warms you up with spice and also a little bit of that alcohol kick. 

DM: Right? [Laughs]

HSN: What are your thoughts on the potential future of RTDs in on-premise locations such as hotels, restaurants, live events (once we are able to have them again!) and even bars?

DM: Sure. I think, honestly, it’s going to be interesting to see what happens in the on-premise because obviously, with the recent COVID pandemic, a lot of bars were shut down and it drove quite a bit of traffic to liquor stores. Obviously, people aren’t going to stop drinking, but it also exposed this category because if you think about it you’re taking a cocktail and putting it in a can and it becomes a convenient alternative to going to a bar, right? So, I also think it drove a lot of brand awareness, not only for our brand but others in the canned cocktail sub-segment. I think what you’re going to see coming back is that there is an opportunity in specific areas where either you need speed to serve…I think that’s one important thing, right? Just cracking open a can and pouring is a lot easier than making it. But, on the other side of that, you know, there’s a lot of restaurants and bars — they serve an experience, and so there are places I don’t think that will necessarily adapt or adopt canned cocktails even on returning. But, the other thing is it’s convenience, right? So, if you have an outdoor bar and you don’t necessarily have room or space and maybe you just have a cooler, rather than just having beer and wine, now you can actually have cocktails as well, so. I think we’ll see it certainly grow [sic] as brand awareness increases for certain brands and the category in general and people ask for it, consumers [demand] it. Then, it’ll be brought in to these on-premise establishments.  

HSN: Can you comment on the new investment in ‘Merican Mule by the Bishop Family and your new advisory board?

DM: Yeah, sure. We are very fortunate to have the Bishops partnering up. I don’t think it’s any secret that they’re proven brand builders who have done it twice over [sic] with starting Sobe, selling that to Pepsi and then starting Blue Buffalo Pet Food out of a barn and selling that to General Mills. I think the thing these brands have in common with ours are a couple things. Number one, they’re brands, right? They’re not products, and they’re driven by a symbol. For Sobe, it was the lizard. For Blue Buffalo, it was the buffalo, and for us, it’s the mule head. So, that makes a lot of sense, but these are very gifted marketing geniuses. They have a very active involvement as advisors to me, and I think they see a nice opportunity for our brand to continue to differentiate and become a real force to be reckoned with in the alcoholic beverage sector in general. We have the opportunity to really transcend to the next level as we continue to grow. We’ve also added David Holms, who is one of the co-founders of Spiked Seltzer to our advisory board formally, and he started essentially the whole seltzer category with his partner years ago. Dave has been a close friend and someone who’s been a mentor figure to me as I’ve grown ‘Merican Mule recently, and we’re really lucky to have him as well because he has a wealth of knowledge.  

HSN: Anything else you would like to add that you think our listeners should know?

DM: Yeah sure, I think I’ll leave you with this…It’s ‘Merican Mule we say because we’re in pursuit of what we call “the New Age ‘Merican Dream.” This company, back in 2015, was started by throwing a bunch of money on credit cards and cashing out savings and 401ks, and we really have bootstrapped and band-aided our way through the process. But, I think we’re really meant to be — I hope — an inspiration to other entrepreneurs to go out and pursue great ideas. We’re obviously really proud to put out a really good product and a strong brand, and I think a lot of times people hold back from really going in the pursuit of their dreams. I hope we can be a little bit of a living testament that if you do it, great things can happen. So, we still have a long way to go, by no means, but just know when you’re engaging with or consuming our brand, you’re getting something that’s [sic] really been grown from the ground up, and there haven’t really been any short cuts. It’s been earned every step of the way, and that’s really what our brand represents. 

HSN: Yeah, it can be really scary stuff starting a company from the ground up. 

DM: That’s right! 

Stephanie Meade
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