Go Deep: Interview with Mark Anderson, Co-Founder and CEO of Drake’s Organic Spirits

I recently went one on one with Mark Anderson, co-founder and CEO of Drake’s Organic Spirits.

Adam: Thanks again for taking the time to share your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks or challenges have been most instrumental to your growth? 

Mark: “Better for you, better for the planet. ®” When Drake’s Organic Spirits was launched in 2017, our mission was to create organic and sustainable spirit. But, was very hard to forecast something so new.

We have encountered many obstacles since we launched the company but have conquered them with dedication and innovation. Drake’s Organic SpikedIce® is a good example: SpikedIce® was the very first “adult popsicle” in what is now a billion-dollar category. When we were creating SpikedIce®, we wanted it to be a freeze-and-eat product with 8% alcohol. However, after several trials, we realized that in order to create SpikedIce® without preservatives, the alcohol content had to be more than 10%. The problem then became the storing temperature, since the higher ABV lowered the freezing temp to -5 degrees Fahrenheit, which was unlikely in a conventional home freezer. It was really not easy to create freeze-and-eat pops, especially with all USDA organic ingredients. We ended using natural emulsifiers, which lets us freeze at 12% ABV with 4-5 hours. We learned from our mistakes and turned our hands-on experience into a ​​billion-dollar category. At first, we sold SpikedIce® only at Costco in the US. The retailer deems a product successful if it sells more than $800 per store per week; when SpikedIce® launched, the pops generated more than $3,500 per store per week. 

When the pandemic hit in 2020, we noticed the demand for alcohol never waved although bars and restaurants had largely closed, the consumption of alcohol just shifted from on-premises to home. We seized this shift to bring the boxed wine concept to cocktails in 2020, introducing ready-to-drink (“RTD”) BOXTAILS®. The innovative idea of putting pre-mixed craft cocktails in sustainable packaging paired with high growth trend in the RTD beverage alcohol category, worked like a charm and bolstered Drake’s growth trajectory. We have a strong core market penetration and national distribution, yet substantial whitespace ahead.

In sum, what I've learned is to move fast and innovate, so we never stop innovating “better for you, better for the planet®” products. 

Adam: How did you come up with your business idea and know it was worth pursuing? What advice do you have for others on how to come up with and test ideas? 

Mark: I grew up in North Dakota and have a background in both conventional and organic farming. My experience helped me understand how to create sustainable food and beverage supply chains.

My career started as a trader at the Minneapolis Grain Exchange and Chicago Mercantile Exchange, trading both derivatives and physical commodities.  Eventually, I started my own company and became the largest importer of non-GMO verified, organic cane sugar from South America. As consumer demand for healthier options has continuously grown, food and beverage manufacturers have in turn needed organic, non-GMO verified alcohol as an extracting agent to produce items such as, for example, organic, non-GMO vanilla flavor extracts. Then we began making -- and importing -- organic cane sugar distillate, becoming the first USDA Organic alcohol manufacturer which also achieved the certifications Non-GMO Project Verified, Gluten Free (certified by GFCO), Vegan certified, and “OU” Kosher. 

Having established this organic alcohol supply chain, with the additional four certifications above, I realized that many of the large, well-known spirit brands were primarily made from genetically modified corn ethanol. GMO corn needs to be replanted every year, and requires millions of tons of herbicides and pesticides, which of course end up in soil and water supplies. I wanted to produce a spirit with the purest, freshest, and most sustainable ingredients, far beyond the current industry standards, and know that organic cane was the way to go. In addition, cane sugar is a grass which produces two crops per year, for four years, before needing to be replanted; also, cane fields remove carbon from the air as they grow.

My advice is to find problems and then turn solutions into practices. My dream was to produce a spirit with the purest, freshest, and most sustainable ingredients, which are beyond current industry standards. 

Adam: What are the best tips on launching new products? 

Mark: Since we are in food and drink industry, quality control and packaging are both very important.

Quality control plays a crucial role in the sensory performance of our products. We have to thank Luis Ayala, Drake’s Master Distiller, for his great contribution in quality control. Based in Hutto, TX, Mr. Ayala has overseen Drake’s Organic ultra-premium, handcrafted spirits since launch. As a founding member of Rum Runner Press, Inc., President of Rum University, and publisher of “Got Rum” Magazine, Mr. Ayala has created the quality standards in the production of rum and other distilled spirits for more than 25 years. With his help, our vodka and rum have a delicious clean taste and aroma.

Our packaging is a combination of common sense and research. Our team put a lot of effort into figuring out how to make the packaging sustainable and distinctive, but nothing was smooth at the beginning. We visited a lot of bottle manufacturers and ordered many sample bottles in order to find out the most suitable packaging. We made a lot of mistakes; however, we didn't mind as long as they were small, and we could adjust or fix them as we went along. For example, we went from corks to screw caps while choosing the closures for Drake’s Vodka. It’s not only for cost efficiency but also for a clean look. We also cooperated with Loggerhead Deco, which provides eco-friendly glass bottle decorating. They decorate glass with UV Ink, which does not have a carbon footprint and makes the bottles 100% recyclable. For Drake’s Rum, instead of applying glass printing, we use a paper label and screen print technique. Since our products launched in 2017, we have received lots of feedback and have made some adjustments. Today, we are happy that our packaging aligns with our values, standards our goals

Adam: What are the key steps you have taken to grow your business? What advice do you have for others on how to take their businesses to the next level? 

Mark: We move fast, we innovate, and we are about health and wellness! Drake’s Organic Spirits has encountered a lot of obstacles since we launched the company, but our dedication to creating sustainable spirits allows us to overcome all the difficulties, and we are now on a rapid growth trajectory.

We invest considerable time and money to make products that are ‘better for you, better for the planet,’ and have spent the last five years educating consumers on this. Now sustainability is a huge trend: consumers read labels, care about what they put into their bodies, and support corporations that support our planet, which has all worked drastically in our favor. Next up we are expanding our B2B network, selling our organic cane distillate to various partners. The more of us that are carbon negative, the better.

Adam: What are your best tips on the topics of sales, marketing, and branding? 

Mark: For me, the best marketing and branding is to sponsor specific events. In 2018, Drake’s Organic Spirits sponsored TAO Group to hold a three-day Super Bowl party at The Lumber Exchange Building in Minneapolis. In 2019, we sponsored the Daytona International Speedway and served our product at the racing event. Then, we became the official vodka, rum and SpikedIce® sponsor of the Association of Volleyball Professionals (AVP), the biggest and longest-running professional beach volleyball tour in the United States. Drake’s Vodka and Rum along with the SpikedIce® were available at all AVP Tour events during the 2019 season. We traveled alongside AVP to CA, TX, NY, WA, IL, and HI. AVP placed our products in hospitality areas and provided significant promotional support during each event. 

This was followed by a soaring demand for Drake’s products, especially SpikedIce®, and much of the credit goes to Beyoncé. The pop superstar posted a video of people enjoying an earlier version of a sorbet-based Drake’s frozen cocktail product at a pool party during the 2019 Coachella music festival in California. To this day, we sponsor concerts, vegan events, and in-store tastings. In the future, we’d like to participate in more food, beverage and vegan events, because it is a great way to position our products. We recently purchased billboard ads to raise brand awareness. However, I think more than anything, success is due to the “clean” nature of our product, and the really strong consumer demand for that right now.

Adam: In your experience, what are the defining qualities of an effective leader? How can leaders and aspiring leaders take their leadership skills to the next level? 

Mark: Vision, commitment, and the ability to communicate clearly define an effective leader. Also, while pursuing consistency and speed, don’t expect perfection; it can slow you down.

Adam: What is your best advice on building, leading and managing teams?

Mark: Communication is the key; both the flow and the tone of communication are integral to any team's success and the overall success of the business, and good communication leads to greater efficiency, better solutions and a corporate culture that is inspiring and understandable.

Adam: What are your three best tips applicable to entrepreneurs, executives and civic leaders? 

Mark: First, know that you cannot do it all by yourself and cooperate with your team. This is the downfall of many entrepreneurs; no one is great at everything, and thus, teamwork is the key to success. Second, don’t be afraid to make mistakes: if you aren’t making mistakes, you aren’t trying hard enough. People who challenge themselves will eventually push to the point of failure, and there will always be good lessons to learn from failing. Third, surround yourself with dependable and trustworthy people. Reliable personalities are more important than professional skills; you can teach people how to do things, but it’s hard to change someone’s character.

Adam: What is the single best piece of advice you have ever received?

Mark: Before I launched Drake’s, I spoke with several successful brand owners to get an idea of what I was getting into. They told me the secret to success is to choose one state in which to start, so we first focused on our home state of Minnesota. We started our marketing campaign while developing our product lines including generating media placements, advertising, and couponing strategies. So, in brief, go deep before we go broad.


Adam Mendler is the CEO of The Veloz Group, where he co-founded and oversees ventures across a wide variety of industries. Adam is also the creator and host of the business and leadership podcast Thirty Minute Mentors, where he goes one on one with America's most successful people - Fortune 500 CEOs, founders of household name companies, Hall of Fame and Olympic gold medal winning athletes, political and military leaders - for intimate half-hour conversations each week. Adam has written extensively on leadership, management, entrepreneurship, marketing and sales, having authored over 70 articles published in major media outlets including Forbes, Inc. and HuffPost, and has conducted more than 500 one on one interviews with America’s top leaders through his collective media projects. A top leadership speaker, Adam draws upon his insights building and leading businesses and interviewing hundreds of America's top leaders as a top keynote speaker to businesses, universities and non-profit organizations.

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