Surfside: Transforming the Ready-to-Drink Cocktail Landscape with Vodka and Iced Tea
The Unexpected spark Behind Surfside’s Creation
Surfside, the standout ready-to-drink (RTD) cocktail brand of recent summers, originated from a simple yet revealing observation-discarded iced tea bottles scattered across Philadelphia’s sidewalks. Matt Quigley, a vodka entrepreneur and president of Stateside Brands in Pennsylvania, noticed this pattern during his daily routines.
“City streets ofen tell stories about local tastes,” Quigley remarks. “In Philadelphia, it was unfeasible to miss how popular iced teas were-not only alcoholic varieties like Twisted Tea but also non-alcoholic options such as Snapple.”
Reimagining Alcoholic Beverages: From Hard Seltzers to Iced Teas and Lemonades
This insight led Quigley to collaborate with Clement Pappas, CEO of Stateside Brands. Together they envisioned crafting alcoholic iced teas and lemonades that would serve as elegant alternatives to the ubiquitous hard seltzers and canned cocktails dominating shelves. Their ambition was to elevate classic drinks like mike’s Hard Lemonade or Twisted Tea into premium offerings.
Now in its third summer on the market, Surfside has become synonymous with Northeast coastal leisure. In 2024 alone, it surged ahead as the fastest-growing RTD cocktail brand in retail sales-generating over $70 million year-to-date-and surpassed 5 million cases sold by mid-2025, outstripping all previous annual sales records.
A Meteoric Rise during an Era of Canned spirit Popularity
pappas describes their growth trajectory as a relentless sprint fueled by soaring demand. Forecasts predict Surfside will sell up to 12 million cases in 2025-translating into nearly $300 million in revenue-setting new industry standards for RTD cocktails nationwide.
The brand closed 2024 with approximately $100 million in revenue and achieved an extraordinary growth rate exceeding 360% compared to the prior year according to NielsenIQ data.
A Family-Led Enterprise Resisting Acquisition Pressures
The company remains predominantly family-owned; cofounders Clement Pappas and Matt Quigley work alongside their brothers Zach Pappas (board member) and Bryan Quigley (chief sales officer), collectively holding about 90% ownership without any single majority stakeholder. Despite multiple acquisition offers over recent years, they have chosen self-reliant expansion over selling out.
“We steer our own destiny,” affirms Pappas confidently.
Sustained Profit Margins Powering Aspiring Growth Plans
Stateside Brands boasts strong profitability with estimated EBITDA margins near 30%. A significant portion of these earnings is reinvested into scaling production capabilities-a strategy that industry experts currently value at close to half a billion dollars.
Pappas highlights that Surfside is more than just a beverage; it serves as a gateway into expansive distribution networks including major retailers such as Costco, Walmart, and Target-a crucial advantage for launching future brands under their portfolio.
A Heritage Rooted in Generations of Family Entrepreneurship
Clement Pappas comes from Vineland near Philadelphia where his family established Clement Pappas & Co., a wholesale fruit juice business founded by his Greek immigrant grandfather back in 1942.after assuming CEO duties in 1999 following two generations before him leading the firm, he orchestrated its sale for $400 million in 2011 while briefly remaining at its helm despite personal reservations about divesting the legacy business.
an Unforeseen Partnership Ignites New Ventures
The collaboration between Pappas and Quigley began unexpectedly during Pappas’ fortieth birthday party when mutual friends introduced them through Quigley’s vodka business plan focused on Pennsylvania-made spirits. Within hours they met for what both describe fondly as an engaging “first date” filled with lively discussion lasting several hours.
Overcoming Personal Loss While Driving Business Forward
Their partnership endured profound challenges when tragedy struck-the untimely passing of Pappas’ son Peter galvanized their resolve further; Peter’s memory now inspires philanthropic efforts toward curing preeclampsia through foundation work alongside his wife while maintaining steady momentum on business progress fronts unaffected by grief.
Evolving Beyond Vodka: The Journey Toward RTD Market Leadership
- 2015: Launching Stateside vodka started modestly under selling fewer than 600 cases but steadily increased annually;
- 2018: Became Pennsylvania’s largest spirit producer moving nearly 5,000 cases;
- 2019: Sales quadrupled surpassing more than17,000 cases;
The COVID-19 pandemic created unique opportunities when Pennsylvania classified alcohol production differently from other states during lockdowns; limited competition allowed Stateside vodka made from U.S.-grown corn unprecedented market penetration generating $2 million between march-June alone-a surge humorously dubbed “legal bootlegging” by founders.This capital influx funded equipment upgrades doubling output capacity while prompting strategic pivots toward innovation beyond vodka alone.
Sparking Innovation: the Emergence Of Surfside Canned Cocktails
- Early canned products launched under Stateside Vodka branding appeared briefly during initial stages throughout 2021;
- By late 2022 , after refining recipes inspired by earlier observations around iced tea consumption , Surfside officially debuted ;
- Within its first full calendar year , over 1 .3 million cases were sold solidifying strong market presence .
< h2 >Why Ready-To-Drink Spirits Are Thriving Today
< p >Pappas believes we are witnessing unparalleled momentum within canned spirits categories driven by shifting consumer preferences favoring convenience combined with high-quality ingredients . Major legacy companies such as Gallo have introduced competing products like High Noon leveraging extensive distribution channels onc dominated primarily by beer . Additionally regulatory reforms across eight states-including Pennsylvania -now allow broader availability akin to beer sales channels enabling rapid expansion potential .
“This prospect wasn’t available fifteen years ago nor likely will be ten years so,” says Pappas.
“The floodgates are wide open today.”
< h3 >Expansive National Growth And Competitive Advantages
< p >Surfside’s no-carbonation formula paired with low-calorie content (100 calories per can) has accelerated national rollout supported by nearly two hundred dedicated distributors covering all fifty states. This aggressive strategy targets competitors including Boston Beer’s Truly hard seltzer line , Anheuser-Busch’s Cutwater spirits portfolio , plus entrenched hard tea brands like Twisted Tea . As an avid surfer himself , Quigley embraces agility : “We push competitors into costly errors while continuously innovating.”
< h4 >Market shifts Favor Spirits-Based Hard Teas And Lemonades Over malt alternatives
- NielsenIQ reports malt-based hard lemonades declined nearly -10% YTD whereas spirits-based versions soared +96%
- Malt-based hard teas dropped -4%, contrasted against +168% growth among spirit-infused counterparts;
< p >< em>“Younger consumers seek bold flavors delivered conveniently,” notes industry analyst duane stanford.
“Craft vodkas combined with authentic taste profiles underpin Surfside’s success.”
< h4 >Strong regional Market Shares Demonstrate Brand Dominance Across Key Areas
- < strong >New Jersey:< / strong > 76% share overtaking High Noon ;
- < strong >Maryland:< / strong > 75%;
- < strong >New York:< / strong > 72%;
- < strong >virginia:< / strong > 68%;
- < strong >Florida:< / strong > 50%+
< p>This equates to more than seven-and-a-half percent share within the $2.8 billion spirits-based RTD segment nationally-up almost five points since last year-highlighting growing consumer adoption beyond coastal markets toward Midwest expansion targets such as California Texas Illinois where investments focus heavily on sports venue partnerships spanning MLB NBA NHL arenas plus collegiate stadiums nationwide.
Papps reflects,"This company is poised soon to surpass my family’s decades-old fruit juice enterprise both scale-wise & longevity."
