Lee Applbaum, co-founder and president of Round 2 Spirits, shares the story behind the creation of Weber Ranch, a game-changing vodka made from 100% Blue Weber agave. After building and selling Patrón Tequila to OU Kosher certified Bacardi for a record-breaking $5.1 billion in 2018, Applbaum and the Round 2 team sought to disrupt the spirits industry once again. Drawing on their expertise in agave, they crafted a unique vodka that challenges traditional production methods. With Weber Ranch now OU Kosher certified, Applbaum discusses the innovative approach, partnership with long-time agave grower Felipe Navarro, and the brand’s commitment to quality and trust.

OU Kosher: Lee, could you start by giving us an overview of how and why you started this venture?

Lee Applbaum: Sure, sure. All of the partners at Round 2 Spirits previously worked together at Patrón Tequila, building one of the most iconic brands in the tequila space. After selling the brand to Bacardi in 2018, which was the largest privately held spirits transaction in the industry at the time, we realized how much we enjoyed working together. It was more than just a business; it felt like a family, with several thousand employees.

An Opportunity in Vodka

We always wanted to come back together, but it had to meet a few criteria. The first was that whatever we did had to be truly disruptive. We’re disruptive by nature, so we didn’t want to do something that was just slightly different, like a new flavor or a fancy package. We wanted to create something that would make a difference. The second criterion was scalability. We were used to operating at a global scale, like we did with Patrón, so whatever we did had to be capable of being scaled.

Vodka is the largest spirits category by volume in the United States, doing about 80 million cases a year. We looked at the category and saw an opportunity for disruption. We decided to craft a vodka from 100% blue Weber agave. I serve as the president and chief operating officer, working alongside partners like John Paul DeJoria, Ed Brown, and others who were all part of the Patrón team.

OU Kosher: Who came up with the idea for this disruption, and what makes it disruptive?

Lee Applbaum: Great question. As I mentioned, vodka is a huge category, but since its inception, there hasn’t been much meaningful disruption. Most vodkas are made from potato, wheat, corn, or occasionally grapes, and innovation has primarily been in flavors or marketing. We wanted to do something completely different. We have a deep appreciation for blue Weber agave, a plant that takes seven years to mature under the warm sun in Jalisco, Mexico. This allows the sugars to concentrate, imparting a natural sweetness and a unique flavor profile to the vodka, without the need for additives.

Our vodka is additive-free, gluten-free, and carb-free—just agave and water. This use of a plant material that has never been used before in vodka makes it truly disruptive. It’s also a more costly and labor-intensive process, but we believe it yields a superior product that is meaningfully different in taste.

The Product and Pricing

OU Kosher: Now that it’s kosher certified, is your price point going to be above your competitors?

Lee Applbaum: Excellent question. In the vodka category, there has been a race to the bottom in terms of pricing, largely driven by several of the bigger brands. While we believe we have a superior product, we also have to be mindful of what the consumer is willing to pay. Our retail price for a 750ml bottle is $27.99, possibly going up to $29.99. This is competitive with the leading premium brands in the marketplace. We believe the product merits a higher price, but we have to earn that with consumers first.

OU Kosher: It sounds like this project isn’t easy to execute. You’ve taken on more than your competitors in terms of production and sourcing. Was that part of the plan?

Lee Applbaum: Absolutely. Disruption is hard, and if it were easy, it wouldn’t really be disruptive. We have made our lives harder, but it’s gratifying to see the positive response to the product, even in the early months. The packaging and the proposition have been well-received, and more importantly, people love the taste. We’ve had a transformative effect on both core vodka drinkers and those who had moved on to other spirits.

It’s hard work and capital-intensive, but we love it. We’ve built and own our own distillery, and we’re entirely partner-financed with no outside investment. So, while it is challenging, it’s also deeply satisfying.

Sourcing and Partnerships

OU Kosher: You’re sourcing your product in Mexico. Is that through a cooperative or a single agave grower (“Agavero”)?

Lee Applbaum: We use one agavero, someone we’ve known for decades from our previous experience at Patrón. He has a large-scale growing and distilling operation. Imagine calling someone who has spent their entire life making tequila and telling them you want to source agave for vodka. There was a bit of a double take, but his response was, “That’s brilliant. I’m in.” This partnership is built on trust and long-standing relationships. His name is Felipe Navarro, and he, along with his family and his team of agaveros, are like family to us.

OU Kosher: Does Felipe sell to any of your competitors, or are you his exclusive vodka client?

Lee Applbaum: He does sell his agave to other tequila brands, but we’re the only vodka brand using 100% blue Weber agave. He has a large operation, and he supplies several leading tequila brands in Mexico. As for whether he’s contractually obligated not to sell to other vodka makers, I’ll be a bit evasive here, but I can say that our partnership with Felipe is built on trust and goes beyond financials. We focus more on growing successfully together than on specific contractual terms.

OU Kosher: Trust seems to be a recurring theme in your operations.

Lee Applbaum: Absolutely, especially when dealing with a partner on the other side of the border. Trust is paramount. We’re not on the ground watching the harvest every day, so having a trustworthy partner like Felipe is crucial.

OU Kosher: Is there anything innovative you’re doing that you can talk about?

Lee Applbaum: Certainly. The obvious innovation is that no one else is using 100% blue Weber agave to make vodka. It may sound simple, but it’s quite heretical in the industry due to the time, cost, and logistics involved. Our copper pot and column stills are also proprietary and custom-built. Our master distiller, Antonio Rodriguez, is another key aspect of our innovation. Antonio was the head of production at Patrón and is like family to us and he brings chemistry and artistry to the distillation process.

The terroir of the agave, the flavor profile before it even goes through the distillation process, is crucial. If you start with high-quality agave, you end up with a superior product. There’s a lot of innovation throughout the process, and we believe we’ve created a unique, defensible proposition that will be hard for others to replicate. The goal is to craft a vodka that impresses both vodka and agave drinkers.

Consistency and Quality Control

OU Kosher: Antonio is responsible for maintaining consistency across all batches, correct?

Lee Applbaum: Yes, exactly. Antonio is the artist ensuring that every batch has a consistent flavor profile. He’s built a team with highly acute palates to detect any slight variations. In vodka, consistency is key—you want every bottle to taste the same, whether you buy it now or in two years. Antonio’s team ensures this consistency, though they still taste the batches to make sure everything is perfect.

OU Kosher: Where are you in terms of your rollout? How long have you been selling bottles?

Lee Applbaum: We launched in earnest at the end of May, beginning of June, so it’s still very new. Currently, we’re in 30 states, and we are on target to be distributed in all 50 states by the end of the year or the beginning of next year. That’s an unparalleled pace for a rollout of this scale, and it’s possible because of our drive, capital commitment, and our distribution partnership with Southern Glazer’s Wine & Spirits. They were our partner at Patrón, and our long-standing trust with them has enabled us to roll out a new brand at this speed and scale. It’s quite extraordinary, and we’re excited about where we’re headed.

OU Kosher: What are you most proud of in terms of the response so far?

Lee Applbaum: Honestly, we haven’t received a negative response yet, and I’m not being hyperbolic. I’m sure there are some out there, but I haven’t seen them. Once people taste it it’s an immediate light bulb moment for them. They understand the velvety mouthfeel, the clean and fresh flavor profile, and the benefits of being additive-free.

There are also people who are intensely curious. Vodka is the largest category in the US by volume, but it hasn’t seen much innovation lately. Consumers are excited about something new and interesting in vodka, especially as other spirits categories like tequila and gin have seen a lot of innovation. People like being part of something new, and they enjoy sharing that experience with others. I’m immensely proud of the response because, while we knew we had something wonderful, consumers can be fickle. Seeing the positive reactions, even from skeptical mixologists at events like Tales of the Cocktail in New Orleans, has been incredibly gratifying.

OU Kosher: You talked a lot about what differentiates you in the market. What about the trend toward non-alcoholic beverages? Is that something you’re concerned about?

Lee Applbaum: The “no-low” movement—no alcohol or low alcohol—is real and has been growing steadily. I applaud it because it’s about giving people options. Whether someone is choosing not to drink alcohol for a night or for other reasons, they still want to participate in social experiences. It’s all about balance and variety. I don’t see it as a threat but rather as a part of a broader landscape where people have different options for different occasions.

Kosher Certification and Accessibility

OU Kosher: Was there ever a question about getting kosher certification?

Lee Applbaum: No, not at all. It wasn’t even a question. While some might assume it’s because many of us in the company, including myself, are Jewish, it actually goes beyond that. Kosher certification is about more than just religion; it’s a broader halo for quality. Growing up, I always saw kosher certification as a mark of quality. Many people, including non-Jews, recognize that products with kosher certification are held to rigorous standards. We also have other certifications, like an additive-free verification, which are all about transparency and quality.

There is also a commercial opportunity here, especially in markets with large Jewish communities. For example, in New York, if we want to be successful, kosher certification is essential. We talk a lot about accessibility as a broad theme, and we want to make sure our product is available to everyone, including those who follow a kosher lifestyle. The OU certification, being the most widely recognized and rigorous, was a natural choice for us. They were also great to work with, very professional and transparent throughout the process.

OU Kosher: We appreciate hearing that. It’s great to know how important certification is to you.

Lee Applbaum: Absolutely. It makes a big difference. The OU team was excellent to work with, and we’re very grateful for the partnership. We’re also looking at how to communicate this to the kosher community. There’s a real opportunity to message this effectively, whether through in-store displays in communities with high Jewish populations or other marketing strategies. We’re definitely going to be proactive about it.

OU Kosher: Do you have any future plans, or are your current plans focused on scaling and achieving a cash-positive situation?

Lee Applbaum: When you have creative people like we do, the instinct is to move on to the next project. But we’re disciplined, and right now, it’s all about scaling Weber Ranch. We still have a long way to go in terms of awareness, even with the support of Southern Glazers. It’s a patience game, building the brand account by account and consumer by consumer. Our parent company is called Round 2 Spirits, so eventually, we’d like to expand, but right now, we’re focused on building this brand over time. Occasionally, I’ll wake up with an idea and jot it down for the future, but right now, adding another project would just be a distraction.

Personal Involvement and Consumer-Centric Approach

OU Kosher: Do you personally reach out to prospective retailers and make calls?

Lee Applbaum: Yes, I do. I have a tasting this evening in Charleston, and last night, I did a tasting with several bartenders across a restaurant group. Our whole team has an ownership mentality—we’re not just selling a brand for a company we work for; we’re selling the brand we created. It’s a mix of business and pleasure, though my wife sometimes gets frustrated when I turn dinner plans into work. We also do cold calls and walk into bars to introduce ourselves. We do go door-to-door in markets, shaking hands and leaving our cards. The phone number on the card isn’t an 800 number; it’s my personal mobile number. That’s how you build a brand.

OU Kosher: How else would you know what’s going on in the actual marketplace?

Lee Applbaum: Exactly. It’s important to hear from the cynics and skeptics because it helps us refine our messaging. Early on, we heard the same question over and over: “Why isn’t it tequila?” That feedback allowed us to craft a specific elevator pitch. The short answer is that our product is produced like tequila but is taken up to 190 proof, which is the regulatory requirement for vodka. It’s still made from 100% blue Weber agave, just like tequila. The art is in balancing the flavor to satisfy both vodka drinkers and agave enthusiasts.

Advice for Entrepreneurs

OU Kosher: What advice would you give to someone starting a food or beverage company?

Lee Applbaum: It’s incredibly hard. The food and beverage industry is cluttered, but the most important thing is knowing your consumer. It’s easy to chase your own passions, but you have to listen to what the consumer wants. The intersection between your passion and the consumer’s needs is where iconic brands are built. It’s crucial to be consumer-centric and listen to their voice. All the money and experience in the world won’t matter if the consumer doesn’t want or need your product.

Sometimes, as Steve Jobs famously pointed out, consumers don’t know exactly what they want until you show it to them. But even then, it’s based on an intense understanding of their pain points and needs. That’s the key—being intensely focused on the consumer.

This is my first true startup; I’ve spent most of my career working with big brands like Coca-Cola and Patrón. It’s a different experience, but when you get it right, it’s incredibly gratifying.

OU Kosher: I really appreciate your time and conversation. I wish you the best of luck, and whatever we can do to help, we’re here for you. I can’t imagine that you won’t be wildly successful.

Lee Applbaum: Thank you. I appreciate that.

https://www.weberranch.com/