Episode Transcript
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Speaker 1 (00:00):
Aspom Picket the podcast CEOs you should know, and we're
talking right now with Daniel Barnes of High Poor Daniel,
just reading your work bio is pretty amazing because you
founded Treaty Oak Distilling Company, you co founded Canteen Spirits,
Waterloo Sparkling Water, Mighty Swell Cocktails, and Ladybird Mixture Company
(00:20):
along with the Notorious Group. And you look like you're
only about to twenty five, twenty six, twenty you've done
a lot.
Speaker 2 (00:26):
Well, I don't know about the looking like I'm twenty
five at this point. It's a little bit longer in
the tooth than that.
Speaker 1 (00:33):
Well, we're talking about the beverage business. How did you
get involved in the beverage business?
Speaker 2 (00:37):
You know, I grew up in the hospitality industry. My
parents owned a small motel and restaurant really out in
the middle of nowhere, a small town called Menard, out
where the Texas Hill Country starts, and so kind of
had this love for hospitality from a very early age.
And then when I moved down here to Austin to
go to school at the University of Texas, I landed
(00:59):
a job as a busboy, initially at the Four Seasons
and that became pretty formative for me and really just
fell in love with flavor experiences and brand building. You know,
I left, I left the Four Seasons. I built a
couple of companies in the medical and insurance realm, but
then really realized I was missing that passion and food
(01:21):
and beverage. And you know, I've always said that once
you fall in love with hospitality, there's really no escaping it.
Speaker 1 (01:27):
That's true, just gets you back. I like radio, it's
always in your blood and everything. So well, tell us
about your current role, CEO with High Poor.
Speaker 2 (01:35):
High Poor is a really really interesting scenario right now.
You know, we're a a himp beverage, meaning that we
we do offer a state change or a buzz that
is derived from th HC, but no other candibinoids in there.
And as far as my role goes, you know, it's
a really fast moving category, a lot of shifting regulations.
(01:57):
But we're seeing that consumers want some real alternative to alcohol,
things that offer, you know, some form of a buzz
that you can offer something like that if you will,
but an opportunity to have you know, more of a
social drink that's different from alcohol. And you know, my
job is really to get in here and to build
it responsibly, to be really transparent with what the ingredients
(02:19):
and our process and what the expectations are, but also
bring some of those skills from working in craft spirits
and understanding the need for high quality flavor and branding
and clear messaging.
Speaker 1 (02:30):
Okay, now you talking about being transparent. What is the
difference between hemp and cannabis.
Speaker 2 (02:35):
You know, it's the it's the same THHC experience. First
and foremost, the molecule is identical hemp itself. Just as
a lower natural volume of THHC. We're able to isolate
that THHC very predictably. Now, one thing to make very
clear with hyhpore is it is not a wellness beverage.
(02:57):
We don't have other cannabinoids in there and things like
that actually, you know, can help with with you know,
different ailments that folks have. We are specifically a leisure beverage,
and so with hypoor we look for a very light,
very consistent social buzz.
Speaker 1 (03:12):
As opposed to alcohol. Correct, yes, sir so. And of
course any type of of HC products has really been
in the news lately with the government in the Texas
legislature so I'm sure that you've really had a certain
guideline that you've had to follow on this too. What
are some of the guidelines you've had to follow, you know.
Speaker 2 (03:33):
I'd say both here in Texas, and then we've had
some of the federal law changes come up. Just over
the last few weeks, we did see the Farm Bill
update which was a banning of HIM beverages. Now, within
that banning, I want to be very clear to say
that we were granted a one year grace period which
gives us some time to align the industry and talk
(03:56):
about HIM at a federal level. You know, it's a
it's a delicate and difficult scenario that we're in with that,
but I want to be very clear that I absolutely
see the need for federal regulation. You know, we need
the safety, we need information around proper dosing. We absolutely
have to have some age gating to prevent underage use.
(04:18):
And you know, myself and the High Poor team, we're
deeply involved in shaping this right path forward.
Speaker 1 (04:23):
Now this is available outside of state, not just in Texas.
Right regulations involved with it.
Speaker 2 (04:29):
Yes, sir, that is correct. So we ship via our
e comm through our website to I believe it is
roughly twenty five twenty six different states, and then we're
actively engaged with a distributor in doing retail work in
seven states as of today.
Speaker 1 (04:46):
Has the government regulations put a damper on getting more
retail business? Can you get do you only sell your
product at say a liquor store? There's certain places where
you can sell your product regulations, you know.
Speaker 2 (04:58):
I think that'll be part of what comes out of
this regulation, but as of right now, there isn't a
federal line to tow on that. And if anything, I
think that we're seeing more and more conversations around him beverage.
Definitely more interest in the category from consumers. But then
we're seeing some big retailers get involved too, like, for instance,
(05:19):
Target is doing some work with the beverages. Now we
just found out we're going to be doing some work
in Texas and Florida with sprouts market, for example. So
you're seeing a lot of the national retailers continue to
be pretty bullish about the category.
Speaker 1 (05:33):
That's good and again you got to be over twenty
one though to buy it though, don't you?
Speaker 2 (05:37):
Yes, sir, that's one of the big things too, although
that's not clearly stated on the federal side currently. That's
one of the things that we're really pushing for.
Speaker 1 (05:44):
Now, Daniel. This is a lot different, say than marketing
Waterloo sparkling water as well. Right, did you know what
you were getting into when you first started this, you.
Speaker 2 (05:54):
Know, not totally to be completely honest, It's a category
that I've been paying attention to. I grew up in
I guess what you would call a THHC friendly family.
My dad went to college here at the University of
Texas back in the seventies, so I always had a
very different point of view about cannabis and HIMP and THCHC.
(06:14):
But really getting into this, this hip beverage category, there's
definitely challenges the three that I would say that we
really look at. Or education, you know, letting people know
what it is and how it works and how to
dose it so that they understand the predictability about it,
fighting that stigma around THHC and cannabis in general, just
giving some real transparency to it. And then, as we
(06:37):
touched on with the farm bill update and even the
Texas changes, navigating a constantly moving regulatory landscape.
Speaker 1 (06:44):
What is the biggest misconception about your product?
Speaker 2 (06:47):
Though people not understanding what the dose is and what
the experience coming is. There's a degree of trust around
alcohol for lack of a better way to put it,
that comes with the familiarity of the experience there, okay,
And so it's getting people to understand that that we
don't look at massive large doses. For example, you know,
(07:09):
our our seven to fifty mL product that's akin to
a distilled spirit, it's five milligrams of THHC per one
and a half out serving. So our whole thing was
to be very predictable with a light dose of THHC.
Speaker 1 (07:23):
And what would a light dose do to the average person?
Speaker 2 (07:26):
You know, what we look for is is something that
makes you feel more socially interactive, a little bit of
the same brain chemistry that that goes on with you know,
a dopamine release and some of those things that you're
looking for with relaxation and a calming mood. But really
just something that's a that's a very light shift in
(07:46):
your daily dynamic.
Speaker 1 (07:47):
Really to reduce stress is what you're talking about.
Speaker 2 (07:49):
That you know, i'd say that that's that's a benefit
that I personally feel. That's not something I can say
from like a metal legal. But yes, sir, definitely, are.
Speaker 1 (07:59):
There any warnings or whether there be any warnings on
the product like there is on alcohol.
Speaker 2 (08:03):
Uh, you know, we we are. You can if you
could see a bottle of High Poor, We've we've got
almost every warner you can imagine. It looks almost like
a like a NASCAR vehicle. But at this point we're
we're very careful to make sure we explain all those things.
But you know, that's a that's a very nuanced area
and that and that's why we strongly favor not allowing
individual brands to make the decision on what warning should
(08:25):
be on that label, but federal regulation coming in there
and things that are actually science based.
Speaker 1 (08:30):
So very interesting, interesting future. What are your your hopes
for High Brand? You know?
Speaker 2 (08:35):
For for what we'd love to see is for us
to be on on backbars across America in the next
five years. We we very carefully and meticulously designed High
Poor to fit into the current drinking culture. And what
I mean by that is is not making the product
where it is available places that alcohol isn't that We're
(08:55):
available where alcohol is and we're a part of that.
We're just a different decision for people to look, to
look for and to make you know, we're not here
to replace alcohol. We're here to expand the choices around
that social drinking culture lifestyle. Yes, sir Well said, total
total lifestyle.
Speaker 1 (09:14):
Right there. You have founded several companies. If somebody is
interested in doing what you're doing, what would be the
first piece of advice that you would give them? Do
anything but that?
Speaker 2 (09:24):
No, I'm just kidding. I'm especially these days, right, Yes,
sir Well said, No, you know I've been. I've been
very very lucky, very blessed, depending your point of view
on the people that I've gotten to work with and
the opportunities that I've had, both both early on in
founding stages and working on brands at you know, later
points in their life. For me, it really comes to
taking your time and knowing that passion itself isn't enough,
(09:47):
if the fit for the brand isn't right out there right,
surrounding yourself with people who feel kind of like the uh,
your gaps or the things that you're not aware of
or that you're not good at, don't try to be
good at everything, and really that gives you that opportunity
to lean into your specific and unique strengths yourself and.
Speaker 1 (10:05):
What are your strengths you know?
Speaker 2 (10:06):
For me, I really love the idea of brands. I
love learning different points of views from consumers to investors,
to competitors, and I think that that becomes kind of
a form of empathy, which is a real superpower for
CEO in a lot of ways. The biggest challenge for
me is staying calm and thinking clearly under pressure. Which
(10:29):
it's funny. I was talking to my daughter's over the weekend.
I was explaining to them that being a CEO is
a lot like playing pickleball. You got to read the
court and adjust quickly. But the most important thing is
to stay calm, very very good.
Speaker 1 (10:43):
That's right there. What is the best piece of advice, though,
that you ever got before you started the company?
Speaker 2 (10:50):
You know, I think it's something that's stuck with me,
and it was coming from other people who were open
about talking through their mistakes and not letting yourself get
emotionally tied to a brain. And you know, that's something
that's very important, is that don't look for don't look
for what you think the brand should be. Use that
(11:10):
empathy I talked about earlier to really find out how
the brand fits into current culture and what need it
is solving for.
Speaker 1 (11:20):
And you could certainly say this is a proud Austin brand.
It envisions the Austin mantra to keep Austin weird. Almost,
couldn't you say that?
Speaker 2 (11:27):
I think that's very fair to say. I think that
we're really lucky here in Austin with kind of the CpG,
the consumer product, good hotbed that we've got for startups,
and I think a lot of us take a lot
of pride about being with Austin. There's as much as
we've grown and kind of gotten the name of Austin
bigger and bigger as the city itself has grown, there's
(11:48):
a lot of pride that comes from being from Austin, Texas.
Speaker 1 (11:50):
Still it certainly is now, I'm gonna say, And there's
also pride with you t What was your degree in
at Texas? So?
Speaker 2 (11:56):
I studied business at the University of Texas. I actually
didn't graduate from the University of Texas. So I went
there and focused very hard of my studies. And then
as I got further and further along in my food
and beverage career with the Four Seasons, I started focusing
there became a level two sasmier at a very young
age and really just dug into focusing on those flavors
(12:19):
and then saw an opportunity as I moved into this
world of medical and insurance to start up some companies
on that front and got aggressive there.
Speaker 1 (12:28):
Very interesting path that you have taken. It is, it is.
Speaker 2 (12:32):
It's kind of it's humbling to look back at this
point in my life and see the outcome from the
various gambles that I took and kind of getting off
the beaten path.
Speaker 1 (12:41):
But got to be very proud of your success and everything.
How do you ensure a good work culture? How many
people work for your company?
Speaker 2 (12:49):
So we have about fifteen people that currently work for us,
work with me, I should say, really for work culture,
I focus on helping everyone have very clear roles, very
clear expectations, and allowing open loud voices, push really hard
for transparency about what the company's doing, why it's doing it,
(13:12):
and really try to present that level of hospitality first
and foremost to each other inside the company to work
through that. And I've just found that historically that people
do their best work when they feel supported and empowered,
and so anything I can do to assist on that front.
Speaker 1 (13:28):
Scott, You're going to have a very bright future in
twenty twenty six, and you said there's a one year
grace period with everything happening with the state and with
the federal government right now. What do you think the
future is for High Poor in twenty twenty seven? How
is the business going to grow?
Speaker 2 (13:42):
No? I think really this is a this is kind
of uncharted territory that we haven't seen before with what
HIMP beverage can be. I mean, a new category is
really being born, and there's huge room for innovation. I
would say that High Poor is doing for THHC beverages
what Craft Spirits did for cocktails, you know, fifteen years ago,
twenty years and now fifteen years ago, and it's bringing legitimacy, responsibility,
(14:07):
and real flavor to it. And so for us, it's
just showing that you can still have that cocktail experience
and we're not saying that we're here to replace alcohol.
I frequently put it in terms of mounds and all
them joy. You know, sometimes you feel like a drink
and sometimes you don't. And so I think that's the
key for us is learning a symbiotic relationship with alcohol,
(14:29):
but still embracing the idea of cocktails and flavor.
Speaker 1 (14:32):
Do you think there's a threat from the alcohol business though,
targeting all the HMP products that are coming.
Speaker 2 (14:37):
Out, you know, I think that's part of what we're
learning with this federal ban and this opportunity to engage
with those stakeholders and those parties. I think what they're
looking at is that, you know, at the core of this,
these HMP beverages, these THHC infuse beverages, they are just
like alcohol. They're a drug and they need to be
federally regulated and they need to go through the same
(14:58):
set of regulation that you see with alcohol. And you know,
a lot of people look at those and they think, well,
that's just a tired old system or something like that.
But it's in place to protect people, to protect underage folks,
to protect people from too strong of the dose, from
you know, marketing compliance and messaging that that's erroneous or
you know, at worst, even evil and wrong. So to me,
(15:20):
I think that that's the most important part is listening
to those alcohol stakeholders because I think that they share
a perspective that matters.
Speaker 1 (15:29):
How is that going to affect your marketing?
Speaker 2 (15:32):
For us directly with Hypoor, it doesn't affect us very
much because we've been pretty direct on how we're approaching
this and that we viewed this as something that is
ancillary to alcohol or even amplifies the idea of a
cocktail experience because it gives people that are choosing not
to drink a way to participate, in a way to
be present in that. Well.
Speaker 1 (15:53):
Is there anything that we that we haven't covered in
the podcast that you'd like to mention, because as you said,
this is as a growing business, it's new territory.
Speaker 2 (16:01):
Actually, no, it definitely is. And you know what I
would say is that, you know, first off, gratitude towards
you for having me on for the conversation.
Speaker 1 (16:09):
So I appreciate that.
Speaker 2 (16:12):
Love for the Austin CpG community with folks like Clayton
Christopher and John Paul Douarria and Tito Beverage and you know,
folks that have kind of set this out for other
people to be able to follow in their footsteps. And
at the end of the day, I just love building
things that make people feel good and I think our
world could use more of that right now.
Speaker 1 (16:30):
One question that I was going to ask was is
there a specific blueprint that you're following or actually you're
redeveloping the blueprint every day, aren't you because of these
regulations coming out, I.
Speaker 2 (16:40):
Would say to a degree, and I think the biggest
thing for us is education about what hip beverage is
and what hih pore is. And then after that it
is just getting people in a scenario to get liquid
to lips, as I like to say, get people a
chance to try it and taste it.
Speaker 1 (16:57):
And speaking of that, how can they taste it?
Speaker 2 (17:00):
You can find us at highpoor dot com. You're able
to buy us through e comm there. We're also popping
up at local liquor stores, bars, restaurants all across the
Austin area.
Speaker 1 (17:12):
That's what I was going to ask you about bars
and restaurants, Whether you're going to be that's that's an
entirely new venture right there.
Speaker 2 (17:17):
It is it is, and it's it's all about educating
and working with you know, your your great bartenders that
we've got around the Austin area and helping them become
those de facto educators for consumers with the product.
Speaker 1 (17:32):
We're talking with Daniel Barnes of high for CEOs. You
should know