For the last several years, margaritas have been voted the most popular cocktail in America. Creating a margarita from scratch is inconvenient, time-consuming, and requires a number of different ingredients. Margarita mixes offer convenience but sacrifice taste. MARGS is a canned sparkling margarita brand that offers the convenience of a ready-to-drink offering without compromising quality or taste. Using premium tequila and all-natural ingredients, the company offers five full-bodied flavors including Classic, Mango, Coconut, Mezcal, and Spicy; all are 5% alcohol, low in sugar, carbs, and calories (130). MARGS can be found in locations in New York, New Jersey, and Florida presently with plans to expand to new markets.
AlleyWatch caught up with MARGS Founder Joey Angelo to learn more about the business, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
We have an amazing group of professional athletes, financial sector leaders, real estate and hospitality experts combined with the new $3M institutional capital investment by Lab Capital Advisors.
Tell us about the product or service that MARGS offers.
MARGS is a premium canned margarita and uses top-quality tequila and ingredients to create an authentic flavor that is low in sugar, calories, and carbs. At a reasonable price, these sparkling cocktails are affordable and delicious. MARGS is currently offered in five full-bodied flavors including Classic, Mango, Coconut, Mezcal, and Spicy. As a credit to its unique formulation and consumer appeal, MARGS just received the amazing Double Gold award at its first San Francisco World Spirits Competition. Additionally, it solves a problem.
What inspired the start of MARGS?
This is simple – we were unhappy with the quality of the malt and tequila canned beverages and thought we can create a better product using natural ingredients and real cane sugar vs aspartame and chemicals you cannot pronounce. We also want to concentrate solely on the world’s most popular cocktail, the margarita. We are not a seltzer, we are not flavored tequila soda, we do not produce any other spirit-based beverages besides tequila and mezcal. We keep it simple and clean.
How is MARGS different?
Everything about MARGS is different: the simple clean premium packaging, the trademarked name allowing the consumer to know exactly what is inside the can vs any other RTD out there. We use a few all-natural ingredients and real sugar making the best tasting canned beverage on the market. We also keep it light and fun – it’s a margarita in a can, life shouldn’t be overly complicated.
What market does MARGS target and how big is it?
MARGS is currently sold in our first year of business (and today is our 1st anniversary) in NY, NJ, and FL. We are onboarding PA, MI, and IL this month
What’s your business model?
To over-deliver with the best possible product to our consumers, and to have proper visibility at restaurants, stadiums, independent stores, and large chains. Additionally, we’re looking to have exponential growth quarter after quarter while innovating and opening to new markets. Consistency!
To over-deliver with the best possible product to our consumers, and to have proper visibility at restaurants, stadiums, independent stores, and large chains. Additionally, we’re looking to have exponential growth quarter after quarter while innovating and opening to new markets. Consistency!
What are your post-COVID office plans??
We recently partnered with Lab Capital Advisors and are moving our NY headquarters to their Chelsea offices. It’s an all-hands-on-deck relationship.
What was the funding process like?
Funding can be stressful. We obsess over taking care of our investors and over-delivering, always. We were fortunate and had a lot of people reach out wanting to get involved from all different walks of life. We built something incredibly unique and got noticed quickly. We are very grateful and fortunate!
What are the biggest challenges that you faced while raising capital?
I think spending the appropriate buckets wisely and generating as much volume carefully and strategically while monitoring inventories, supplies and sales forecasts, with no sales history has been the biggest challenge.
What factors about your business led your investors to write the check?
I believe they are betting on the founders, our histories, and wins, in the spirit business in addition to a very unique product in a crowded segment. We do things differently in the greatest way possible.
What are the milestones you plan to achieve in the next six months?
The next 6 months will be about opening strategic markets with a heavy focus on the chain business while maintaining and growing our existing business.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Start small and be strategic. Concentrate on a small base that grows incrementally, focus on velocity, and re-order rates.
Where do you see the company going now over the near term?
I believe our new partnership with Lab Capital Advisors will increase our focus on brand building and operational execution and is exactly what we need to catapult MARGS to the next level.
What’s your favorite outdoor dining restaurant in NYC?
Hmmm… a tough one. Catch Roof. Full transparency my best friend, over 25 years, and college roommate Eugene Remm is the owner. That said, their rooftop is second to none and has some of the best sushi in NYC!
