063: Rock Bottom to Building a $30M/Year CPG Beverage Brand with JW Ross

JW Ross is the founder of Botanic Tonics, a non-alcoholic beverage brand that has grown into an 8-figure business since launching 3 years ago.

Before getting into consumer packaged goods, JW had built and sold 4 oil and gas companies, the biggest of which employed 500+ people and brought in $150M/year in revenue. He also started a fintech software business, which he later sold to Oracle.

Leaning on lessons from starting, scaling, and exiting companies, JW launched Botanic Tonics’ flagship product, Feel Free, as a productivity enhancer and a healthy alternative to alcohol after experiencing his own struggles with substance abuse.

In today’s episode, you’ll hear JW talk about transferable lessons from exits in multiple industries, unique distribution challenges and solutions in the consumer packaged goods space, and how borrowing the Red Bull playbook for university partnerships has led to an uptick in direct-to-consumer sales.

Special Offer:

Botanic Tonics  is offering $40 Off. Use code BAM40 at checkout!

JW Ross Inspiring Quotes

• “You really don’t want to be shipping water around because it’s expensive. It takes up a lot of space. So, if you can concentrate something in a small format, make it shelf-stable like 5-Hour Energy did — that’s where the biggest margins are.” – JW Ross

• “Most people don’t realize that convenience stores are the largest channel in the country. There are 154,000 convenience stores and they move tremendous volume.” – JW Ross

• “I would say that we’re in the golden era of podcasting as far as a marketing tool.” – JW Ross

• “What you want more than anything is a good quality product.” – JW Ross

• “The true power of a government is the power of the purse.” – JW Ross

• “I look at the habit of coffee consumption or the habit of exercise or the habit of gratitude or the habit of hard work. They’re all things that once you put them in motion, they sort of just happen.” – Brad Weimert

✔️ Starting and scaling 4 oil and gas companies—one of which grew to $150M/year in revenue.

✔️ Starting a Fintech software company and being bought out by Oracle for an offer he couldn’t refuse.

✔️ How JW used vertical integration to hit $2.5M in his first full calendar year and $30M+ in his second year after launching Feel Free.

✔️ What JW believes is the most productive type of online marketing.

✔️ How the 150,000+ convenience store ecosystem operates as one of the largest channels for distribution in the U.S.

✔️ How has the ROI of influencer marketing changed over the years?

✔️ The unique margin, shipping, and store space considerations that led JW to create Feel Free in 2-oz bottles.

✔️ The difference in margin between direct-to-consumer vs. retail distribution.

✔️ Using struggles from substance abuse issues as a catalyst for turning things around.

✔️ Leveraging centers of influence to create a halo effect with networking marketing.

✔️ How 5-Hour Energy built a $1B/year business by mastering the impulse section of stores.

✔️ The difficulties in keeping a high level of customer service when using third-party distributors.