Upper Street Marketing, Inc. announced finalization of a partnership deal with Ennoble Beverages to launch a new joint venture using Frank's RedHot to create a progressive adult beverage portfolio. The deal is Upper Street Marketing's entrance into the flavored malt beverage industry. A former executive from Mike's Hard Lemonade, Chris Pfeifer, is the new venture's chief marketing officer.
Upper Street Marketing Director Gordon McDougall said Frank's RedHot Bloody Mary gives first mover advantage in the United States' key flavored malt beverages segment and the same in Canada with Frank's Bloody Caesar. "The brand infers a potential $100-million business on its own. But we're also developing a national and international distribution network, where very few currently exist."
McDougall said that, for Mike's Hard Lemonade, Pfeifer and team generated revenue of $600 million. Amid a historic down market in the beer industry, their efforts took the company's top-line revenue from $138 million to $350 million. At the same time, they brought the brand portfolio's operating contribution from $17 million to $80 million, McDougall said.
Pfeifer also developed the products Palm Bay ($50 million revenue per year), Mike's Hard Lemonade US mixer pack ($20 million revenue per year) and ROCKSTAR+VODKA ($10 million revenue per year). The products are three of Mike's Hard Lemonade's best-selling.
McDougall said Upper Street plans to release several new flavors and complete a brand extension and new brand acquisitions through a distributor network in the next four years. The team will use the same promotional strategies as those which brought Mike's Hard Lemonade its success.