RTD: Janne, thank you for taking the time to share more about you and your story. Please tell our readers about you and Loncaro.
JK: As a native of Finland, I grew up drinking long drinks, or lonkeros, along with the rest of the country: to this day lonkeros are the most popular category of alcoholic beverage, across all demographics. Indeed, sharing a lonkero was a rite of passage, and the experience always brings me back to those endless summer days, of teeing off at midnight, and the heady excitement of Midsummers by the lakes in northern Finland, surrounded by the best of friends. After graduating from Georgetown in the late nineties, every summer I would invite friends to join me in Finland for the midsummer festivals. I noticed that all my American friends were drinking was lonkero. At the time, there were very few RTDs in the US market and those that did exist. if I'm being honest, we're not very good. I saw a huge potential opportunity and started working on a business plan to bring the lonkero to the States.
Then on August 5, 2006, I broke my neck in a diving accident and was instantly paralyzed. My accident turned my life upside down. After going through our healthcare system and spending a year in the hospital, I learned firsthand about the challenges people living with paralysis face. I decided to put my Long Drink dreams on hold and founded NextStep Fitness, www.nextstepfitness.org. NextStep is an internationally recognized non-profit organization that makes life-changing rehab accessible and affordable to those living with paralysis. Then in 2019, I was back home enjoying a lonkero on the shores Baltic once again and was inspired to make my dream come true but this time with a true purpose. With each sip of Loncaro, you are supporting NextStep and the 6 Million Americans living with paralysis. And that was that, we launched Loncaro in July of 2022 in Hermosa Beach, CA.
RTD: What are some things that set Loncaro and its products apart from other products on the market?
JK: We are an authentic long drink made with real gin and all natural ingredients (a quick sidebar here: a real long drink must be made with gin just like a margarita must be made with tequila). But what really sets us apart is the overall experience of the drink and its taste profile. We have done hundreds of blind taste tests against the competition, not only other long drinks but also the best-selling RTDs on the market, and we have yet to lose a single one. After years of development, we are confident we have the best tasting low ABV (every one of our products is 5% alcohol by volume) in the market. Additionally, every one of our products is all natural, which means our low-calorie line of long drinks, which we named Lumi (Finnish for snow) has zero sugar and zero artificial sweeteners, and tastes amazingly balanced.
As far as the brand is concerned Loncaro stands for authenticity in every respect, extending from my personal story, to the quality of the ingredients and adherence to out Finnish provenance, to the community we are building. As a result, a portion of all the profits is donated back to Nextstep, bringing lifelong rehabilitation and wellness to an underserved and often forgotten group of individuals living with paralysis.
And one final unique characteristic about Loncaro: a bartender can't make it behind the bar. It is not a mixed cocktail stuffed into a can. Loncaro is its own creation, and we invite you all to experience it with us.
RTD: What motivated you to enter the highly competitive RTD beverage business?
JK: After a decade’s work building NextStep from a single outpatient rehabilitation center into a global organization with 13 locations in the US and overseas, I was finally afforded the opportunity to pick my head up and consider revisiting this business idea. At that time, there was only one other Long Drink in the US market (that was growing nicely) so we saw an opportunity to come into the market as the second brand in the category, with a compelling brand and product offering.
To be honest the competitive nature of the marketplace, particularly the presence of many very large, well-funded players, gave us pause. However, the market testing we performed with our products against theirs, mostly through blind taste tests, boosted our confidence. But as you well know, it is impossible to have success without extraordinary partners. I have been humbled and inspired by the enthusiasm shown daily by our distribution partners, particularly Great Lakes Wine and Spirits in Michigan, and Superior Beverage, Stagnaro, Bonbright, and NWO in Ohio, and we are eternally grateful to them for their efforts and competence.
Buy Loncaro Authentic Finnish Long Drink
RTD: What challenges did you face on your journey into the RTD business?
JK: There are endless challenges of course, and sometimes it feels as if every day is a new knife fight. But the first that comes to mind is creating brand awareness operating as a small start-up that has to be judicious with our resources. And so it is has been important for us to be very creative and push the envelope when it comes to marketing and advertising, and to focus on cost-effective guerilla marketing. To help us on the strategic and tactical levels here we have been fortunate enough to recruit extraordinary individuals to assist the team, including our Chief Strategy Officer Matt Dzamba, who brings substantial experience navigating both Vitamin Water and Body Armor to multi-billion dollar exits and Nik Entwistle, who rebranded DAU vineyards prior to its sale to Treasury Wine Estates in late 2023.
Second, the industry has changed drastically over the past few years. Consolidation has changed the playing field at both the distributor level and with major retailers. This can make it hard for small emerging brands to gain the exposure their products and brands often deserve. We have taken the approach of confident relentlessness, and have been fortunate enough to land numerous distribution partnerships and are excited by the progress we have made with major retailers.
Finally, if you look closely at each can of Loncaro you will notice the Finnish word sisu. There is no other word that means more to me. Roughly translated to English, it is “strength and grit in the face of adversity.” It is endemic to Finns, and it is what enabled me to survive my accident, the two subsequent times my heart stopped in the ICU, my years long recovery, and it is what drove me to found NextStep to help others in my predicament. It is also the force that drives Loncaro as we navigate the inevitable obstacles ahead. In my mind, it is the ultimate expression of “failure is not an option.”
RTD: What would you consider your and Loncaro’s greatest triumphs to date?
JK: Developing the best tasting, most refreshing, all-natural RTD in the market. Securing great distribution partners and co-packers, and creating a wrap and can design that pops off the shelf. Developing a second SKU, costing of a 96 calorie 3 flavored variety pack made with zero sugar, zero sweeteners, zero gluten, and just as delicious as the original variety pack. There is something for everyone.
RTD: Did you have any mentors in the RTD industry? If so, please share more about them and your relationship.
JK: Yes, my co-founder and I were fortunate to have close personal friends in the beverage industry including in the RTD, spirits, beer, and non-alcoholic space. These individuals helped us avoid many mistakes we could have made, made very meaningful introductions, and allowed us to get to market more efficiently. Two of this individuals, whom I mentioned above, have leaned in as both investors and advisors, particularly, Matt Dzamba and Nik Entwistle.
RTD: What excites you the most about the RTD industry as a whole?
JK: It continues to grow as other sectors in the beverage space are slowing down. It is also an ever changing and evolving industry which forces one to adapt and be nimble, which is what I enjoy most. Every day brings a new challenge to solve.
RTD: What trends do you see occurring with ready-to-drink cocktails?
JK: There is a clear trend towards low ABV RTDs made with natural ingredients. I believe consumers will shy away from RTDs that use artificial sweeteners not only for wellness concerns, but because the taste is inferior. Finally, we are seeing consumers gravitate toward brands with a compelling identity and purpose. At Loncaro, yes we are in the business of selling beverages, but first and foremost we are inviting consumers to join our family, a community that is born out of the mountains of Finland, and embraces a spirit of fun-loving, purposeful revelry.
RTD: If you could go back in time, what advice would you give yourself about the RTD business?
JK: Do absolutely everything you can to get as much "liquid to lips" as possible. If you are a small start-up, do not expand too fast. With each new market comes added marketing, sales, production costs. You can create a successful business in a few markets that you can manage effectively. Many brands try to go national before their capital structure can support that expansion. Next, understand that there are lots of hidden fees that exist in every contract you sign so make sure to have a comprehensive understanding so you are not shocked when you get an unexpected bill (pay particular attention to any anticipated third-party vendors that may be brought in after the contract is executed). Finally, make sure to find a can supplier, or better yet multiple suppliers, that can provide you what you need in a timely fashion. Sales should never wait on production.
RTD: If you could do it all over again, what, if anything, would you do differently?
JK: I would have hired more boots on the ground faster. This is a key area of focus for us now and we are finding immediate impact with each new hire; it is an exhilarating time and gratifying experience for me.
RTD: What do you feel the future holds for the RTD industry?
JK: I see lots of room for growth, but I also see major retailers starting to limit how many brands per category they put on the shelves. This puts the pressure back on us to make sure we are doing everything we can do maximize brand awareness and increase the opportunities to get the product into consumers hands for trial.
RTD: What does the future look like for you and Loncaro?
JK: After almost four years of very hard work, including two-plus years engaged in high intensity product development, I have never been either more excited, nor more confident, in our future. With the critical distribution partners mentioned earlier matched with a highly coordinated and disciplined marketing and sales campaign, this year holds the promise of a true break out, starting with our host of loyal independent accounts and now expanding into major retail chains. Beyond this, we are engaged in strategic dialogue with several national players to align on plans to accelerate growth to a national scale. It’s going to be a fun ride.
RTD: Is there anything else we didn't touch on that you'd like to talk about?
JK: One question I often get asked is about the brand name “Loncaro.” As I mentioned above, long drink in Finnish is lonkero. When founding the Company, we wanted to respect this heritage as much as possible, while embuing the brand with our particular identity. Since we started the Company in my hometown of Hermosa Beach, California, we swapped the “ke” for “ca” to denote our roots, and thus “Loncaro” was born.
Second, I believe there is some confusion in the marketplace over precisely what a long drink is. It is not a single brand or product. It is a category of drinks, precisely the same as seltzers, beer, or mixed drink RTDs. In Finland there are dozens of producers of long drinks, and there is more than enough room in the US for several options, of which humbly submit Loncaro, with an invitation to try it, and join us on this journey.
RTD: We really appreciate your telling us about yourself and Loncaro, Janne. Best of luck with your foundation and with the brand going forward. Cheers!
You can learn more about Loncaro's authentic Finnish Long Drink cocktail by visiting their website at www.loncaro.com
