1st BATCH OF FILES AVAILABLE NOW!

After aggressively expanding its retail presence in NYC over the last couple yrs, bringing total to 5 locations by late 2024, TALEA's "plan was to spend 2025 not opening anything new, optimize our operation" on the production and taproom side. But that came "at the same time" as "the slowdown in the industry, which we definitely felt," co-founder LeAnn Darland acknowledged in chat with CBN. Much like the rest of the industry, "the first half just killed us," she exclaimed. That said, TALEA's still on track to grow volume and sales this yr, especially after stronger growth in Q3 distribution, primarily in NYC thru Union Dist, expecting 7,500 bbls and a little north of $10 mil in revs for the year. Yet co's taking a step back on profitability, looking to break even this yr after growing profits in 2024. So TALEA's "still trying to navigate the changes that we're seeing with consumer sentiment" and making a couple key strategic adjustments in the process, LeAnn detailed. Added Part of NJ with Jersey Eagle; Philly with 31st and Wharton; Lessons Learned TALEA entered its first out-of-state territories thru distribution starting with AB distrib Jersey Eagle in part of NJ this Jun and indie house 31st and Wharton in Philly this Sep. These are "fairly safe steps" beyond NY state, LeAnn and co figure, and they're not lookin' to go further before adding more reps to cover those territories and build presence in 2026. There were "lots of lessons learned" in the early days in these new mkts, LeAnn acknowledged, noting that co entered NJ with prices "too high" initially before adjusting and entering Philly "at a better price point." TALEA "wanted to see what the organic demand would be," and "as much as we love getting initial placements of sours," the hope is to make that a "gateway placement that can then turn into IPAs and lagers for the volume." Lead brand Al Dente Italian-style pilsner accounts for ~40% of TALEA's mix and continues to grow 60% yr-over-yr with "really strong draft sales," she added.Core Portfolio Shifting to 6pks Thru Jack's Abby Production; Thinking About Affordability Then too, co's changing package formats from 16oz 4pks to 12oz 6pks for its core brands, led by Al Dente Italian-style pilsner, Sun Up hazy IPA and Fresh Coast IPA, working with Jack's Abby for contract production. "I do think the future of craft beer is not going to be these crazy high price points" and "sixteen-ounce cans," said LeAnn. Rather than invest in new packaging equipment and squeezing it into its smaller facility in Williamsburg nabe, going thru Jack's Abby was a good way to "hedge against that risk." But the volume requirements are pretty high, she noted, so co's only making the switch with the core 3 brands for now, hoping to "eventually be able to switch" Peach Berry Punch sour ale too. "The first step is to try and maintain our shelf space." While Jack's Abby is already producing those brands, the switch to 6pks will happen by early next year.Raising More $$ Thru Friends, Family, Angel Investors vs Seeking "Proper Series B" Raise TALEA's been "going back and forth" on plans for its next capital raise too, LeAnn shared. She and co-founder Tara Hankinson contemplated seeking a "proper series B" from "larger, more institutional investors" that could bring in $10 mil in order to help build more "brick and mortar in other markets." But with more "uncertainty" in the mkt right now, and less "appetite" for acquisition/partnership from larger companies, co's leaning more toward hustling to raise around $5 mil thru friends, family and angel investors. It's "nice to only report to ourselves," LeAnn noted. Co wants to use additional capital to invest in market managers and optimizing current footprint. If TALEA does open more taprooms, it'll be NYC area for now, still eying 2 other potential locations in NYC and one "in a suburb." The latest location across from Madison Square Garden is viewed as a "short-term pop-up," she added.Betting on Beer to "Weather the Storm" There's a healthy "internal debate" about beyond beer categories, whether or not to explore THC bevs, and/or participate in other budding subcategories, said LeAnn. In its taprooms, TALEA does have its own wines that it produces with an unnamed partner in Long Island, offering a TALEA-branded white, red, orange and rose wines, often available on draft. It also has a couple non-alc brews like Spritzy Sour and Day Trip lager, or some house made non-alc lemonades. TALEA offers other cos' wines, liquors, hard ciders and non-alc bevs along with a full cocktail menu at its locations too. But it "tried" the various hard bevs over the summer, i.e. hard tea and lemonade, and determined that's "a tough group of beverages to compete with," said LeAnn. In order to launch any new product beyond the taproom these days, Tara and LeAnn gotta be "really feeling strongly" about its prospects and "staying power." So "I don't know if we'll continue" those beyond beer hard bevs, she stated.Instead, co will "keep doubling down on beer," said LeAnn. "Regardless of what happens" over the next 2-3 yrs, "we strongly believe beer is here to stay," she declared. It will keep striving to sell lagers, IPAs and sours. It will keep seeking interesting collabs that feel organic and fun for the brand, including latest with Tabasco sauce to make a co-branded "pizza beer," with local jeweler Catbird for a Ghost Rose lager, or with body care/razor brand Flamingo for a co-branded "shower beer" blackberry lager and shower beer holder. It will keep up its distinctive branding across its products and taproom spaces that aims to be more approachable for women in a typically male-oriented industry. But now it's "a matter of who's going to stay," and "what do we need to do to weather this storm" in order to "be stronger when hopefully the tide turns," co figures.

TALEA Facing Growing Pains but Still Growin' as It Navigates Changing Sentiment; 6pk Shift w/ Jack's Abby, Added NJ & Philly, Fine-Tuning Ops, Another Raise

Publishing Info