I recently spoke to Christopher Pellegrini and Stephen Lyman. Christopher is the Founder of Honkaku Spirits and Stephen is the Ambassador for Honkaku 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?

Christopher: After developing independently as content experts in the same field (Japanese spirits in general, and shochu/awamori in particular), we became close friends and constant collaborators on everything related to growing international awareness of this beverage alcohol category. It was slow going, but we were both named category ambassadors by the Cabinet Office here in Japan, and we’ve spent a good chunk of our lives traveling the globe spreading the word.

But the tortoise-like pace of progress got to us after a while. Shochu and awamori, despite outselling sake in Japan, weren’t getting the recognition they deserved abroad, and we, quite frankly, got tired of it. We started Honkaku Spirits in March of last year and haven’t looked back.

Nearly all of the serious challenges we’ve faced thus far are related to either the pandemic or lawyers (ha!). We’re happy to report that we’ve survived both (thus far), and there have been silver linings to all of the ominous clouds above. Our particular logistics situation is pretty unmalleable even during the best of times, and COVID has exacerbated that in no small manner. It’s forced us to plan better, communicate more, and assume less. 

Stephen: This is a fascinating question to me for a variety of reasons. But perhaps I will focus on the fact that I never expected to be here doing this. I come from a family of educators and never had a strong desire to become an entrepreneur. So naturally I spent years educating the public and members of the hospitality profession about Japanese shochu and awamori. 

There was definitely a bit of imposter syndrome. I had never worked in hospitality. I had never worked in sales. Yet I was featured on Japan’s NHK as New York’s shochu expert before I had ever even set foot in a shochu distillery. The first time I went to Kyushu Island, where most shochu is made, to visit a distillery, I went in July.  I didn’t even know that that’s when most distillers are on vacation because it’s too damned hot to work. I saw a bunch of idle distilleries. But I got the bug and have since gone back to Kagoshima to work in a handmade shochu distillery every fall since. 

I distinctly remember a good friend of mine in the hospitality business telling me that the other alcohol professionals in New York did not respect me, because I did it as a hobby. I had not earned my stripes as it were. Fortunately, my passion and notoriety outside of New York led to a book deal and that book, The Complete Guide to Japanese Drinks, was nominated for a James Beard Award. Since then my imposter syndrome has disappeared and so have the whispers of hobbyist. 

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? 

Christopher: We’ve had a ton of support throughout this process, and we wouldn’t have gotten where we are today without the steady guidance of a key mentor. As soon as our mentor prodded and cajoled us to start a company that we had privately pondered for ages, we knew that we were probably onto something. The idea in question, of course, is that the shochu and awamori world is far too deep and nuanced to just be plopped on a shelf in poorly-localized packaging and expect people in Austin, Boston, or Charleston to immediately get it. In order to put these drinks on the map outside of Japan, the companies importing and distributing them were going to have to spend most of their waking hours thinking about account activation and education (for the trade and consumers alike). We are striving to be that company.

As for the brainstorming process, we spend a lot of time on Zoom late at night working on copy, coming up with branding ideas, troubleshooting plans of attack, and trying to stay one step ahead of everything that is likely to be misunderstood. We’re dealing with products that are culturally significant in ways that are difficult to describe, so something’s bound to get lost in translation.

I think the key point here is that we love working together, and we trust each other implicitly. We speak creatively and honestly, and I don’t know where we’d be today without that level of communication between us. We also welcome feedback from the rest of our team, and don’t shy away from getting rid of ideas that we were particularly wedded to at the beginning of the brainstorming process.

Stephen: We had the idea based on watching so many other importers try to establish shochu and awamori as spirits categories in the US market and fail to meet expectations (or simply fail). We realized that due to our passion for these obscure, but incredibly delicious Japanese native distilled spirits traditions, we might just be the guys to do this after all. Fortunately, we had both been cultivating close relationships with some of the top shochu and awamori makers for more than a decade.  We realized it might be worth pursuing when we were approached by a distributor to ask if we would be interested in curating a portfolio. This came as validation, because we had already had several shochu and awamori makers nearly beg us to do the same thing.  

Even though we are trying to build an unknown category of spirits in the US drinks market, we still tried to look for unmet need. We were aware of which shochu and awamori brands were already in the market. We did not want to compete with them – we wanted to compliment them. Our portfolio fills the gaps in the styles and expressions not currently sold by other importers. So I would say look for those unmet needs, confirm there is sufficient demand, and get to market before anyone else figures out the market inefficiency. Sorry if that sounds overly academic.

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

Christopher: The human story behind your product or service is powerful. We’re fortunate because we know the people making our portfolio of spirits personally, and we consider them friends. It makes it easy for us to be passionate about what Honkaku Spirits sells. These are the spirits we sip at home, and we are insanely grateful to our friends for allowing us to bring some of that beauty to audiences outside Japan. When you are selling something that you really care about and believe in, there’s a level of passion that permeates your sales pitch, and authenticity anchors the entire approach. 

Stephen: Don’t launch during a pandemic? Seriously, though. The thing that has struck me so much about response to our portfolio has been how our authenticity shows through. Distributors, buyers, liquor store owners, bartenders, and consumers all seem to respond incredibly positively to our passion and dedication to these drinks. With today’s consumers, at least for beverage alcohol and probably for most culinary or experiential markets, consumers seem drawn to authenticity and passion. Introduce them to something they’ve never had before. Give them a new favorite thing to discover. 

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? 

Christopher: While keeping our eye on costs and overhead, we have managed to hire extremely well. We will not always have this type of luck, but we also don’t plan to balloon our ranks anytime soon. One of the key points here was hiring for culture and making sure that the professionals we found would enhance how we confront the challenges of growing a business born during the pandemic.

Another thing that we feel has made us (relatively) successful is how we obsess over our relationships with our partners. We often hear comments about from our distributor that they’re not accustomed to working with such attentive and passionate suppliers, and we take that as a serious point of pride. We take the same approach with the restaurants, bars, and liquor shops that choose to buy our products. It’s all about finding ways to make their jobs easier and more rewarding.

Stephen: Find great partners. I mean this in every sense of the word. Christopher is an incredible partner in this company, but we’ve found and hired and retained an absolutely outstanding start-up team. Our distributor partners feel like family. Even the various consultants we’ve hired to help us remain lean rather than taking on too many full-time employees as we get started have turned into friends. I could imagine them at Thanksgiving dinner. They are just good people. I suspect the passion and authenticity mentioned earlier is what has drawn these people to us. Not sure we deserve it, but we are beyond grateful.

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

Christopher: I feel like a most sales pitches should really be approached like they’re collaborations where both sides are involved in a bit of problem-solving. It’s a dialogue more than anything, and a lot of good things can come from friendly conversation.

Stephen: I have been amazed at how much time we have spent designing brands. Virtually every single aspect of our labels and packaging is carefully discussed with our design team. And the response to our packaging has been wonderful. People notice the details. When it comes to branding “don’t sweat the small stuff” does not apply. Sweat it. Don’t get it right. Get it perfect. Does the curb appeal of our portfolio actually result in more sales? I honestly do not know, but it cannot hurt. 

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? 

Christopher: In no particular order other than alphabetical, good leaders are empathetic, inspiring, and relatable. Leadership skills improve with increased self-awareness and sublimation of one’s ego. You have to drown it.

Stephen: I do not consider myself a leader, but I have led. So I will just give you one quality. Trust. You need to trust yourself to make the right decisions. You need to trust others to give you good advice. You need to trust their advice enough to take it when its right and trust yourself enough to reject it when it doesn’t fit. You need to instill enough trust in your partners, employees, business associates, and clients to ensure that you are all on the same team trying to make each other money. You also need to gain and keep the trust of your consumer. I will never agree to put anything in our Honkaku Spirits portfolio that I would not drink at home. The day that happens is the day I quit. 

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

Christopher: Hire with company culture firmly in mind, and spend the time to engage in due diligence. We have tried to build a company that trusts employees to manage themselves and act in ways that uphold our shared values. This has been paramount in a world where 99% of our time is spent working remotely.

Stephen: At the end of the day, everyone on the team is a human being with the fears, failings, frailty, and emotions that come along with the imperfect creatures we are. Understand that and treat them with mutual respect. Take the time to learn the names of their family members. Figure out what makes them tick and then use their strengths to your advantage and put them in a position that minimizes their weaknesses. And again, demonstrate trust. It’s a two way street. 

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

Christopher:

1. Be humble. It’s not about you. It really isn’t.

2. Seek feedback and own your mistakes.

3. Be grateful. None of us can do this by ourselves.

Stephen: Be honest. Eat well. Exercise.

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

Christopher: Do everything in a way that is authentic to yourself.

Stephen: A waitress in a Japanese izakaya in Manhattan suggested I try the shochu.

Adam: Is there anything else you would like to share? 

Christopher: Enjoy the journey and relish the process. There’s nothing quite like the experience of helping a startup lurch to life.

Stephen: We are less than 2 years into this venture. Perhaps once we have achieved some of our interim goals I will have more to share.


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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