Harry Drnec of THCZ
World-renowned marketing expert Harry Drnec talks with Opportunist’s Managing Editor Leslie Stone about his new role at Totally Hemp Crazy Inc.
Sales of energy drink beverages are expected to top $13 billion this year in the United States alone. Based on sales in 2013, the key players in this growing market are Red Bull, Monster Beverage and Rockstar. Now there’s a new kid on the block: Rocky Mountain High, a brand of hemp-infused beverages launched earlier this year by Dallas-based Totally Hemp Crazy Inc. (OTC PINK: THCZ).
Last week THCZ announced a record-breaking quarter (for the quarter ending June 30), which management says has been driven by brisk sales and a rapidly growing distribution base.
In May, Harry Drnec was appointed as Advisor to THCZ’s Board of Directors. He has been called a marketing genius—one with a gift for turning around struggling brands—and as the former Managing Director of Red Bull U.K., he reignited the then-failing brand and grew sales from 3 million cans in 1996 to 300 million cans in 2006. He has also been credited with moving the brand beyond just another energy drink to a product that provides stimulation for body and mind, which to this day differentiates Red Bull from its competitors.
hemp_lime“I am extremely excited about this new segment of the drink industry, and I love the direction that Rocky Mountain High is taking,” says Drnec, commenting on his recent appointment.
Drnec’s experience in new product development and product launching was developed under a diverse repertoire of beverage companies. At Anheuser Busch, he was the brand manager who launched Bud Light, the largest selling beer brand in the world, and later launched Budweiser and Michelob across Europe.
In the late-1980s Drnec bought London-based wine importer Maison Caurette and began importing Sol, which had been a popular bottled lager brand in Mexico. Within three years, the company’s turnover had tripled and the supplier struggled to keep up with demand of Sol. To this day, Sol is considered one of the Top 10 alcoholic beverages of all time in the U.K.
Drnec was also previously Senior Marketer for Ernest and Julio Gallo, and he introduced Snapple to the U.K. market. Born in Chicago, Drnec served as a U.S. Air Force pilot in Vietnam.
Opportunist: Did you set out to become a marketing legend?
Harry Drnec: I set out to be a pilot. After five years flying for the U.S. Air Force, I got out and realized I had a college education and a lot of hours in an airplane but was not as well prepared for a career as my peer group. So I went back to school and got a degree in marketing and finance. From there I was hired by Anheuser Busch and soon realized consumer focused brands and products are where all the action is—and marketing is key to that. I just got involved and became better at it and continued to do it. The greatest skill is leadership and motivation and I have been very fortunate to choose some good people to work with me.
Opportunist: Tell us about your experience with Anheuser Busch. What was it like to introduce Bud Light to the world in the early 1980s?
Harry Drnec: I was involved in new product development for Anheuser-Busch and August [Busch] walked into my office one morning and said ‘Taste this ... it’s Bud Light and I would like you to lead it as brand manager.’ In point of fact, August Busch was the brand manager and I was his assistant. From there we developed the product and it was the biggest thing Anheuser-Busch had done in decades. The importance of it cannot be minimized. They had used the Budweiser name on a couple of other products over the years and were a little worried about the effect Bud Light might have on the parent brand.
Opportunist: Did you ever expect Red Bull to be as successful as it still is today?
Harry Drnec: I think it’s hard to imagine. When I started with Red Bull in the U.K., which had failed after 18 months and lost 18 million pounds, the company was floundering—it was actually picking up more product out of market than it was putting in—and had tried Germany and failed. Austria was the only success and I knew if we didn’t make a success of it in the U.K. they were in serious trouble. I did tell Red Bull co-founder Dietrich Mateschitz early on, after I got a handle on it, that I thought it could be the Coca Cola of the 21st century. Nobody could see how important the brand would be. Dietrich is an interesting guy. He and I didn’t hit it off at times—I always call a spade a shovel anyway [Laughs]—but I admired his marketing focus and his ability to do things differently. Red Bull is more than just a brand. Now it’s a huge media success. One might even say that the media side is almost as big as the energy drink brand itself.
THCZ_logoOpportunist: How did you become involved with THCZ?
I got involved through a very close personal friend, Thomas Hensey, managing partner of Rhino Marketing, who prevailed upon me to meet the company’s management and talk with them. I liked them and their enthusiasm and believed what they were trying to do certainly had some bit of originality, especially with the product and the sly play with the cannabis versus hemp and sticking closely to hemp. I said ‘I will come in and give you my advice and see what happens,’ and so far, so good.
Opportunist: For those who may be wondering, will Rocky Mountain High cause people who drink it to feel high?
Harry Drnec: No … and yes! However, I’m convinced that the consumer will feel the benefits of the energy and the outstanding tastes the products deliver.
Opportunist: Do you believe Rocky Mountain High beverages have the potential to make a positive impact in the industry?
Harry Drnec: There are some early indicators of success with the taste, the look and the packaging. The packaging polarizes people which I really, really like. In marketing terms, if you don’t have polarization you don’t have interest. The leaf is so prominent on the label that it makes people stop and say ‘What is that?’ There are people who love the idea and those who hate it, and that conflict causes the motivation for the consumer.
The company’s portfolio will have incredible focus and consumer offerings that differentiate it from both the energy and hemp group and that kind of goes to the top of the heap in each one. Today I think the energy drink segment is where the real key is for a couple of reasons, especially if the margins in that segment are far superior to any other soft drinks. Today you need margin, particularly if you’re a start-up. Second, energy is no longer a big mystery. When I started with Red Bull everybody thought how do you get energy out of a soft drink? The energy drink space is pretty stale—it’s Red Bull and Monster and Rock Star and everything else is so what? There is room for somebody like THCZ who wants to have a little fun with their product offering. If we can put the systems in place and implement a good, solid distribution strategy, I think it will be a significant success.
Opportunist: Can you share some of the ways in which you will be guiding THCZ’s marketing plan in the coming months?
Harry Drnec: I will be helping the company’s founder, Jerry Grisaffi, and CEO Tom Shuman focus on defining what success looks like and putting the building blocks (and people) in place to achieve their objectives. They start with a great concept and a lot of determination. I think you’ll see some exciting developments over the summer, including proof of concept in some important markets.
thcz1
Opportunist: Where is Rocky Mountain High currently distributed?
Harry Drnec: THCZ currently has 24 distributors throughout Southern California, Northern California, Washington State, Texas (Austin, Dallas/Fort Worth and Houston, and Collin, Denton, Rockwall and Hunt counties in the northeast region), Central Florida, Indiana, New York, Michigan, Minnesota, Denver, Atlanta, Oklahoma, Pennsylvania and New Mexico. The products are also available online at Amazon, eBay, Alibaba and Walmart. Varieties include (in 12-ounce cans) a Hemp Energy Drink, Hemp Lemonade, Hemp Iced Tea and Low Calorie Hemp Coconut Lime.
Opportunist: How are you helping the company set up distributors?
rmh2 (2)Harry Drnec: I am trying to help them develop some strategies and focus and at some point in time build some systems. During our first meeting we consolidated the product line and talked about the focus of the product and the product offering. We have redone the pricing strategy to give it a firm base. Ultimately, the consumer will be the guy who decides but we want to make sure the company is in good shape and has the foundation it needs to make a go of it.
Opportunist: What other product lines does the company have in the works?
Harry Drnec: You’ll see a product line that include five varieties of hemp infused drink with two low-cal entries—all with increased energy and hemp extract … both exceeding current levels in competitive products.
The company recently launched its Rocky Mountain High Clothing Co. subsidiary. Consumers can now order Rocky Mountain High themed apparel online at rmhclothing.com. Ultimately, I think the merchandise is good and will give some consumers the opportunity to personalize the brand for themselves.
rmh3Opportunist: Is there anything you would like to say to potential investors?
Harry Drnec: I think I’ll leave the investment advice to Jerry. However, I can say that we’ll be concentrating on proving ourselves in the marketplace while we build systems that will ensure growth and, ultimately, profitability based on consumer acceptance.
Opportunist: What does the company hope to achieve during the second half of 2015?
Harry Drnec: Expansion of the product line and proof of consumer acceptance in key markets, with an innovative approach to distribution. THCZ is in discussion with several countries, and sample products have been shipped to these countries seeking distribution of the Rocky Mountain High products.
Opportunist: Where do you see Totally Hemp Crazy in five years?
Harry Drnec: We hope to achieve national and international distribution, an innovative, motivated sales and marketing team, reinvesting profits to build a solid and growing consumer base.
World-renowned marketing expert Harry Drnec talks with Opportunist’s Managing Editor Leslie Stone about his new role at Totally Hemp Crazy Inc.
Sales of energy drink beverages are expected to top $13 billion this year in the United States alone. Based on sales in 2013, the key players in this growing market are Red Bull, Monster Beverage and Rockstar. Now there’s a new kid on the block: Rocky Mountain High, a brand of hemp-infused beverages launched earlier this year by Dallas-based Totally Hemp Crazy Inc. (OTC PINK: THCZ).
Last week THCZ announced a record-breaking quarter (for the quarter ending June 30), which management says has been driven by brisk sales and a rapidly growing distribution base.
In May, Harry Drnec was appointed as Advisor to THCZ’s Board of Directors. He has been called a marketing genius—one with a gift for turning around struggling brands—and as the former Managing Director of Red Bull U.K., he reignited the then-failing brand and grew sales from 3 million cans in 1996 to 300 million cans in 2006. He has also been credited with moving the brand beyond just another energy drink to a product that provides stimulation for body and mind, which to this day differentiates Red Bull from its competitors.
hemp_lime“I am extremely excited about this new segment of the drink industry, and I love the direction that Rocky Mountain High is taking,” says Drnec, commenting on his recent appointment.
Drnec’s experience in new product development and product launching was developed under a diverse repertoire of beverage companies. At Anheuser Busch, he was the brand manager who launched Bud Light, the largest selling beer brand in the world, and later launched Budweiser and Michelob across Europe.
In the late-1980s Drnec bought London-based wine importer Maison Caurette and began importing Sol, which had been a popular bottled lager brand in Mexico. Within three years, the company’s turnover had tripled and the supplier struggled to keep up with demand of Sol. To this day, Sol is considered one of the Top 10 alcoholic beverages of all time in the U.K.
Drnec was also previously Senior Marketer for Ernest and Julio Gallo, and he introduced Snapple to the U.K. market. Born in Chicago, Drnec served as a U.S. Air Force pilot in Vietnam.
Opportunist: Did you set out to become a marketing legend?
Harry Drnec: I set out to be a pilot. After five years flying for the U.S. Air Force, I got out and realized I had a college education and a lot of hours in an airplane but was not as well prepared for a career as my peer group. So I went back to school and got a degree in marketing and finance. From there I was hired by Anheuser Busch and soon realized consumer focused brands and products are where all the action is—and marketing is key to that. I just got involved and became better at it and continued to do it. The greatest skill is leadership and motivation and I have been very fortunate to choose some good people to work with me.
Opportunist: Tell us about your experience with Anheuser Busch. What was it like to introduce Bud Light to the world in the early 1980s?
Harry Drnec: I was involved in new product development for Anheuser-Busch and August [Busch] walked into my office one morning and said ‘Taste this ... it’s Bud Light and I would like you to lead it as brand manager.’ In point of fact, August Busch was the brand manager and I was his assistant. From there we developed the product and it was the biggest thing Anheuser-Busch had done in decades. The importance of it cannot be minimized. They had used the Budweiser name on a couple of other products over the years and were a little worried about the effect Bud Light might have on the parent brand.
Opportunist: Did you ever expect Red Bull to be as successful as it still is today?
Harry Drnec: I think it’s hard to imagine. When I started with Red Bull in the U.K., which had failed after 18 months and lost 18 million pounds, the company was floundering—it was actually picking up more product out of market than it was putting in—and had tried Germany and failed. Austria was the only success and I knew if we didn’t make a success of it in the U.K. they were in serious trouble. I did tell Red Bull co-founder Dietrich Mateschitz early on, after I got a handle on it, that I thought it could be the Coca Cola of the 21st century. Nobody could see how important the brand would be. Dietrich is an interesting guy. He and I didn’t hit it off at times—I always call a spade a shovel anyway [Laughs]—but I admired his marketing focus and his ability to do things differently. Red Bull is more than just a brand. Now it’s a huge media success. One might even say that the media side is almost as big as the energy drink brand itself.
THCZ_logoOpportunist: How did you become involved with THCZ?
I got involved through a very close personal friend, Thomas Hensey, managing partner of Rhino Marketing, who prevailed upon me to meet the company’s management and talk with them. I liked them and their enthusiasm and believed what they were trying to do certainly had some bit of originality, especially with the product and the sly play with the cannabis versus hemp and sticking closely to hemp. I said ‘I will come in and give you my advice and see what happens,’ and so far, so good.
Opportunist: For those who may be wondering, will Rocky Mountain High cause people who drink it to feel high?
Harry Drnec: No … and yes! However, I’m convinced that the consumer will feel the benefits of the energy and the outstanding tastes the products deliver.
Opportunist: Do you believe Rocky Mountain High beverages have the potential to make a positive impact in the industry?
Harry Drnec: There are some early indicators of success with the taste, the look and the packaging. The packaging polarizes people which I really, really like. In marketing terms, if you don’t have polarization you don’t have interest. The leaf is so prominent on the label that it makes people stop and say ‘What is that?’ There are people who love the idea and those who hate it, and that conflict causes the motivation for the consumer.
The company’s portfolio will have incredible focus and consumer offerings that differentiate it from both the energy and hemp group and that kind of goes to the top of the heap in each one. Today I think the energy drink segment is where the real key is for a couple of reasons, especially if the margins in that segment are far superior to any other soft drinks. Today you need margin, particularly if you’re a start-up. Second, energy is no longer a big mystery. When I started with Red Bull everybody thought how do you get energy out of a soft drink? The energy drink space is pretty stale—it’s Red Bull and Monster and Rock Star and everything else is so what? There is room for somebody like THCZ who wants to have a little fun with their product offering. If we can put the systems in place and implement a good, solid distribution strategy, I think it will be a significant success.
Opportunist: Can you share some of the ways in which you will be guiding THCZ’s marketing plan in the coming months?
Harry Drnec: I will be helping the company’s founder, Jerry Grisaffi, and CEO Tom Shuman focus on defining what success looks like and putting the building blocks (and people) in place to achieve their objectives. They start with a great concept and a lot of determination. I think you’ll see some exciting developments over the summer, including proof of concept in some important markets.
thcz1
Opportunist: Where is Rocky Mountain High currently distributed?
Harry Drnec: THCZ currently has 24 distributors throughout Southern California, Northern California, Washington State, Texas (Austin, Dallas/Fort Worth and Houston, and Collin, Denton, Rockwall and Hunt counties in the northeast region), Central Florida, Indiana, New York, Michigan, Minnesota, Denver, Atlanta, Oklahoma, Pennsylvania and New Mexico. The products are also available online at Amazon, eBay, Alibaba and Walmart. Varieties include (in 12-ounce cans) a Hemp Energy Drink, Hemp Lemonade, Hemp Iced Tea and Low Calorie Hemp Coconut Lime.
Opportunist: How are you helping the company set up distributors?
rmh2 (2)Harry Drnec: I am trying to help them develop some strategies and focus and at some point in time build some systems. During our first meeting we consolidated the product line and talked about the focus of the product and the product offering. We have redone the pricing strategy to give it a firm base. Ultimately, the consumer will be the guy who decides but we want to make sure the company is in good shape and has the foundation it needs to make a go of it.
Opportunist: What other product lines does the company have in the works?
Harry Drnec: You’ll see a product line that include five varieties of hemp infused drink with two low-cal entries—all with increased energy and hemp extract … both exceeding current levels in competitive products.
The company recently launched its Rocky Mountain High Clothing Co. subsidiary. Consumers can now order Rocky Mountain High themed apparel online at rmhclothing.com. Ultimately, I think the merchandise is good and will give some consumers the opportunity to personalize the brand for themselves.
rmh3Opportunist: Is there anything you would like to say to potential investors?
Harry Drnec: I think I’ll leave the investment advice to Jerry. However, I can say that we’ll be concentrating on proving ourselves in the marketplace while we build systems that will ensure growth and, ultimately, profitability based on consumer acceptance.
Opportunist: What does the company hope to achieve during the second half of 2015?
Harry Drnec: Expansion of the product line and proof of consumer acceptance in key markets, with an innovative approach to distribution. THCZ is in discussion with several countries, and sample products have been shipped to these countries seeking distribution of the Rocky Mountain High products.
Opportunist: Where do you see Totally Hemp Crazy in five years?
Harry Drnec: We hope to achieve national and international distribution, an innovative, motivated sales and marketing team, reinvesting profits to build a solid and growing consumer base.
