Artisan Liquors with Nick Pelis, Founder of Citizen Spirits (Maker of Denizen Rum) - 008

Nick Pelis has worked for some of the most recognizable
distilled spirits industry brands and distributors in the U.S.,
including Diageo, Moët Hennessy, William Grant & Sons and
SKYY Spirits. He founded Citizen Spirits with its flagship
artisan rum, Denizen. Denizen's first product was a white
rum that blended flavors from Trinidad and Jamaica, and it hit
the ground running, earning praise from Forbes, iVillage, and the
Beverage Testing Institute. Rum is the second-largest spirits
category in the U.S., but Denizen got noticed in a hurry, with
90+ ratings and a number of awards. The Cocktail Enthusiast raved
that "Denizen is a game changer for white rums." Denizen
introduced its amber 8 Year Aged Merchant's Reserve in 2014, a
blend of flavors from Jamaica and Martinique. Denizen's
Merchant's Reserve has been praised for capturing the essence of
Trader Vic Bergeron's legendary Mai Tai rum.


Nick lives in New York, but has seen distribution for Denizen
explode beyond New York all over the US. Recently, Time Out
Seattle and the Rum Collective celebrated the arrival of Denizen
rum in Washington State.


Notes from the show:


Nick's father, as a sales manager for a high-end Greek food
importing company, gave him the opportunity to see how things
operate in a business, and Nick saw firsthand how people got
excited to receive products.


"If you're going to be successful, you have to deliver something
different."


"You need to value other people's feedback."


Nick noticed early on that there was a void in distilled spirits
products connecting emotionally with consumer.


Rum was a category that was "a mess."


Nick saw a big opportunity in the "tweener" market - post-college
graduates still trying to find themselves.


The concept of a denizen matched Nick's goal of creating a brand
around the "liberated spirit."


Nick's first goal was to create a brand that transcends the
category.


Nick spent a considerable amount of money developing the brand
before developing the product.


Pricing was a barrier to entry; white rums over $20 don't sell.


Offering in-store tasting mitigated risk to retailers.


"On premise"--in bars, restaurants, etc.--cost per ounce matters
more.


Nick ended up at Diageo after his boss at DC Comics moved to
Diageo.


Nick got an MBA in marketing, because he already had a background
in finance, strategy, and operations.


"Very few big companies give people the opportunity to get
outside of their comfort zone."


Very few people deliver on promises, especially if you can't
offer something of value immediately.


Denizen was not Nick's first entrepreneurial endeavor: he decide
to pivot from an online liquor delivery service after 6 months.


Owning a house and renting it out provided greater financial
flexibility.


"You can't have your cake and eat it, too. Put your own money
in."


A SWOT analysis is everything.


A marketing plan is not just based on messaging.


It was a mistake to hire a PR firm.


Email info[at]citizenspirits.com - Nick takes the time to get
back in touch with you.


This podcast hosted by New York attorney Michael Prywes was
sponsored by Prywes Schwartz, PLLC, a law firm devoted to artists
and entrepreneurs.


This podcast may contain attorney advertising. Prior results do
not guarantee future outcomes.