How Surfside Became The Fastest-Growing Alcohol Brand In America

Surfside: The Fastest Growing Alcohol Brand in America

Key Concepts:

• Ready-to-Drink (RTD) cocktails
• Market observation and trend identification
• Bootstrapping and reinvestment
• Distribution network and scaling
• Competition in the RTD market
• EBITDA margins
• Acquisition target

1. The Genesis of Surfside: Identifying a Market Opportunity

• Matt Quigley, President of Stateside Brands, observed a high volume of discarded iced tea bottles on the streets of Philadelphia.
• This observation led to the idea of creating alcoholic iced teas and lemonades as a better alternative to existing options like Twisted Tea and Mike's Hard Lemonade.
• The goal was to compete with hard seltzers and other canned drinks in the RTD market.
• Quote from Quigley: "People just don't naturally digest their surroundings enough. If you look at what is smashed on the curb and the street, I'll tell you a lot about what the people of your city are actually drinking."

2. Surfside's Explosive Growth and Market Performance

• Surfside experienced rapid growth, particularly along the Northeast Coast beaches.
• It became the fastest-growing canned beverage (beer, RTD cocktails) with a $70 million increase in retail sales year-to-date.
• In July, Surfside surpassed 5 million cases sold in 2025, exceeding its total sales from the previous year.
• Projected sales for the year are estimated at 12 million cases, potentially generating $300 million in revenue.
• In 2024, Surfside achieved $100 million in estimated revenue and a 360% sales growth compared to the previous year, making it the fastest-growing brand across all alcoholic beverages, according to Nielsen IQ.

3. Stateside Brands: Ownership, Profitability, and Valuation

• Stateside Brands, the parent company of Surfside, is co-founded by Matt Quigley, Clement Papus, Zack Papus, and Brian Quigley.
• The four co-founders collectively own 90% of the business, with the Papus brothers as the primary investors.
• The remaining 10% is held by early investors (friends and family).
• Stateside Brands is highly profitable, with estimated EBITDA margins of 30%.
• The company declined to comment on profitability and valuation, but Forbes estimates the business is worth at least $500 million.
• The company has reinvested much of its profits back into the business.

4. Acquisition Offers and the Decision to Remain Independent

• Stateside Brands has received multiple acquisition offers in the past year but has declined them.
• Papus and Quigley express no intention of selling the company, emphasizing their desire to maintain control and build a substantial business.
• Quote from Papus: "We're masters of our own destiny at this point."

5. The Golden Age of Canned Spirits and Market Dynamics

• Papus believes the RTD cocktail market is currently in a "golden age."
• The number of outlets selling RTD cocktails has increased significantly.
• Legacy companies are entering the market with their own canned competitors.
• These companies leverage their existing distribution networks to push RTD cocktails into convenience stores and smaller shops.
• Regulatory changes in several states, including Pennsylvania, have made it easier to sell canned cocktails.
• The less strict regulations on malt liquor-based beverages like White Claw have also contributed to the growth of the RTD market.

6. Surfside's Expansion Strategy and Competitive Landscape

• Surfside has expanded its distribution to all 50 states through a network of 198 sales representatives and distributors.
• The brand is actively competing with established players like High Noon, Truly Hard Seltzer, Twisted Tea, and Cutwater Spirits.
• Surfside's marketing emphasizes its "no bubbles" and 100-calorie formulation.

7. Conclusion: Building a Sustainable Brand

• Surfside's success provides Stateside Brands with the opportunity to scale its operations, build marketing partnerships, and launch new brands.
• Surfside is seen as the "ticket to the dance," enabling the company to establish connections with major retailers like Costco, Walmart, and Target.
• The focus is on building a sustainable and scalable business rather than a quick exit through acquisition.