Patriot, spy, hero, and the inspiration for a new brand

I have known Steve Luttmann, the creator of Leblon Cachaça, for some time. As a spirit industry veteran, I always felt that Steve had a wonderful capacity to think outside the box and with his most recent effort demonstrates that, and much more.

Not only is the concept and product unique, but the route to market he has developed is extraordinary and may become a benchmark for the future of new brands.

But, I’m getting ahead of myself, so let’s start with the back story.

The inspiration

Steve is a history buff who grew up in Valley Forge, went to Revolutionary War reenactments and even participated in one when he was a kid, dressed in a continental soldier uniform.

The book Alexander Hamilton, by Ron Chernow fascinated him as it did Lin-Manuel Miranda, the creator of the outstanding Broadway musical, Hamilton. He became enthralled by the story of one of Hamilton’s revolutionary war friends, Hercules Mulligan.

Mulligan emigrated from Ireland in 1746 and eventually became a well-known tailor catering to wealthy British merchants and mainly senior military officers. His craftsmanship and personality — together with a few drams of liquor — made him a trusted friend of the British officers and thereby an important spy for General Washington. Mulligan saved Washington’s life twice from plots to kill or capture him. He also revealed important British secrets that significantly helped the Continental Army.

Steve’s fascination with Hercules Mulligan — tailoring uniforms, serving drinks and getting secrets — led him to develop a spirit based on this tailor-spy-hero and with a product reminiscent of the time.

Steve sums it up nicely:

“Operating in the shadows, (Mulligan) was a hero of the American Revolution, brave enough to take a stand against the injustices he saw in the world and risk his life more than once to save our founding fathers. Deploying all the tools at his disposal, including his Irish wit, off-the-cuff style, and secret stash of liquor, Mulligan seamlessly elicited secrets from the British military. He is the unsung hero of the time and this liquid pays homage to his independent spirit…”

The product

Hercules Mulligan Rum + Rye is based on a recipe from the revolutionary war period and is a 50/50 blend of Caribbean aged rum and home-grown American rye whiskey.

If you recall your American history, then you know that the popular libation of the time was Rum from the Caribbean. But the colonists were miffed when the British taxed the ingredients for their booze under the Sugar Act of 1764. Consequently, they began making liquor using the plentiful rye in the colonies and even mixed the rye with the rum. In fact, mixing different types of spirits was very common during that period.

In addition, the product uses fresh, organic, ginger root that is macerated in the rum and rye blend, and a splash of bitters is added. On the one hand, the product tastes like a ready-made Old Fashioned. But, before you think of it as a prepared cocktail, recognize that it is way more than that. It’s best enjoyed just over ice, but also great with a range of mixers and excellent as a shot.

The product currently is available on Flaviar.com (more about this in a moment). It is 86 proof (43% AbV) and sells for $38.00 for a 750ml. And get this — there were only 2,000 bottles available at time of launch.

The obstacles

Back in the late summer of 2017, Steve introduced me to the concept and the brand and I fell in love with it. We talked about which companies to approach to make this happen — from production to sales. After all, it was beyond just an idea, with a formula/recipe, a full-fledged concept and positioning, and even a package.

To maximize the full potential obviously required a company to manufacture and sell the brand.

Ah, but times have changed for new products and especially innovative brands. Companies would rather buy than build, assuming what they buy already has traction. So much for risk taking in the liquor business. That’s why many of the winning new brands come from entrepreneurs not corporate types.

Oh, and let’s not forget the brave middle managers who combine the avoidance of risk with a large dose of not-invented-here fears.

So, the response from the “big boys” was summed up with comments exemplified by this: “I love the idea, come see me when you have some proof of performance.”

And Steve set off to do just that.

The route to market

To produce the liquid, Luttmann turned to Mario Mazza, whose family has been making craft beverages on the shores of Lake Erie for more than 45 years. They produce an array of terrific craft beer, wine and spirits. I know and have visited the Mazza facilities on a number of occasions and they are a highly innovative company with many outstanding people.

Together with Grisa Soba from Flaviar, Steve and Mario spent a great deal of time blending three different rums, with three different ryes (including from NY State) and even produced a proprietary bitter to be used in the product. (You’ll read more about Mazza in a future article.)

The ginger, however, was another matter. Conventional flavor houses could not produce a ginger that met Steve’s expectations. Most were flat and very artificial tasting. Besides, with ginger from a flavor house, the TTB would require the words “natural ginger flavor”, rather than simply “ginger.” In order to have the words, “Rum, Rye, Ginger & Bitters” on the label, he had to use fresh ginger. So, he tried dried ginger but Grisa Soba, Founder of Flaviar, convinced him that the aroma was missing and needed fresh ginger. But, fresh ginger is difficult to work with and needs expertise to overcome the complexity. (By the way, Grisa is an accomplished whiskey and other spirits expert.)

To deal with the problem, he approached his friend Josh Morton, CEO of Barrow’s Intense Ginger Liqueur for help. Josh confirmed the difficulty and offered macerated fresh, organic ginger root in the rum and rye.

With product formulation and production under control, Steve now faced the daunting task of sales and marketing.

Enter Flaviar

Here is how this Direct-to-Consumer DtC membership club describes itself:

“Flaviar is a band of spirits enthusiasts, inspired by culture, rich history and the art of distillation. We forage the World of Spirits for the finest, rarest and most unique expressions out there and pack it all into a 21st century Members Club.”

Flaviar, is arguably among the most important DtC provider of spirits and the leading members club for enthusiasts. Steve teamed up with them and they are the exclusive online seller and will basically serve as an incubator for the brand. In fact, Flaviar has quite a number of owned brands sold on its platform —cognac, rum, scotch, brandy, among others.

And in case you’re wondering, like most DtC companies, Flaviar is in full compliance with the 3-tier system.

The role Flaviar played as a partner in this venture turned out to be more than just distribution. In addition to advice on the need for aroma from the ginger, Grisa Soba (the founder) had other ideas about the product, including its proof level. Further, Flaviar has a team of designers and social media experts who played an important role.

Flaviar has a very large and growing membership base and the audience for Hercules Mulligan Rum + Rye is far reaching and includes enthusiasts and influencers.

I plan to write more about Flaviar and its role in the DtC market, but for now, here are some of the key benefits of working with them. They provide a fun and entertaining description of all the products they sell; shipping is free; their tasting notes are in depth and use fun graphics; and they go so far as to produce a trademarked “Flavor Spiral.”

“The Flavor Spiral™ shows the most common flavors that you’ll taste in Hercules Mulligan Rum & Rye and gives you a chance to have a taste of it before actually tasting it.”

Here is what they say about the brand.

Above all, Flaviar’s main benefits are, in my opinion, a fast and effective way to gain awareness, build a following, gain invaluable data insights about buyers, and provide the important (and elusive) proof of performance.

Did I say incubator? A better description is ‘incubator on steroids.’

Proof of performance? The brand was launched on Evacuation Day 2019 (November 25 commemorating the departure of the British after the war). By January they had sold out.

What’s next?

All signs so far are that the strategy of an alliance among an innovator, producer, and online sales are working well. And, if I know Steve Luttmann, the Hercules Mulligan brand will become a franchise with endless extension opportunities — perhaps an Irish and Rye whiskies combination, double ryes, and others.

What makes it particularly interesting to me is the role of online sales as a brand launch pad. All new brands start in stores and bars. Remember the expression, “brands are built bar by bar?” Well, Hercules Mulligan is among the first to turn things around with bars and stores the second stop on the brand building trail.

I think it’s the future for new brands and products, particularly those that are highly innovative.