Special Guest, Marisa Sergi

Count money, man.

Money, man.

That grits us.

I told trying to told him on the beast.

What's up gang?

Welcome back to another episode of The Grand Cask.

Get ready.

It's a new day.

We have a special boss lady in the house.

Marissa Surgy.

She is a third generation winemaker with a degree in winemaking from an Ivy League school

Cornell University.

She launched her red headed red head wine.

Was it red headed or red head wine?

Red head, yeah.

Red head wine and now it's red's wine.

And I think did that start as a capstone project at Cornell?

I think when you were in college it was a capstone project and then now it's grown to over

5,000 stores in the United States including mayor, target, Walmart, some big names I think

or now getting your wine.

Was that a capstone project?

It was.

It kind of was by accident as well.

I had no idea how I was going to pursue this whole capstone project situation because

I even know what it meant.

I just knew that if you were a senior in the winemaking program you had to complete a capstone

project to graduate.

So all I saw was this project is going to be between me and graduation.

So it was really scary.

I did realize just by talking to some of my peers who are older than me, there was a lot

of work, a lot of research, a lot of vineyard or chemistry research and that stuff really

intimidated me a more of a creative person.

So I just asked my mentors at school, hey, wouldn't it be okay if I instead designed a wine

label, documented the wine making process and tried to get it into one retail location.

And that would be my project and they said absolutely.

So I'm like, hell yeah, I'm going to go on with this because I just couldn't see myself

being successful just doing that scientific research.

I probably could have handled it if I applied myself but I want to do something that excited

me.

So I was really glad that me proposing that idea got accepted and I kind of ran with it

and I did not picture redhead now rebranded as reds to be a business.

I just wanted to see if I can get in one store and just tell that story and what I found

along the way.

But I got an email that changed my life.

I didn't realize it's going to change my life at the time but it just said, hey, if you

are a student entrepreneur on campus, want some free food, come to this meeting and whatever.

I just saw free food as my favorite wing place called wings over which my friend Dan who

I want to Cornell would eventually bought the chain and he's growing it, he's killing it.

He has some locations actually just opening up in Columbus but anyway, I digress.

Well, this place, I just brought my bottle wine.

I was going to scoop some food and piece out but the woman who was running the meeting

said, hey, if you're a student entrepreneur, you need to give a business pitch.

I had red hair, a bottle of wine and a playful wings.

There was no way I was going to escape without someone noticing.

So I just googled wine industry facts.

I didn't even know what a business pitch was and I just strung something together.

And the next day I found out I was nominated as my school within Cornell.

So I went to Cal's, the College of Agriculture of Life Sciences.

They nominated me as their student business of the year nominee.

I couldn't believe it.

I was there for the food but because of that nomination, I had to figure out how to structure

my capstone project to be a business for this pitch competition.

And I got really great positive feedback from it.

And that's what really catapulted.

Oh wow, maybe this could be a real thing.

Oh, you are a hustler.

You are a hustler.

You were ready.

That did not just happen in that moment.

You already got some hustle in you, you know, for sure.

To be able to turn it on like that, you got a gift.

It was God's timing and planning no doubt, but you are a real hustler.

So where did that come from?

Where did that mindset come from?

Entrepreneurial spirit, witty, you know, you got to have a little bit of that.

Where did some of that come from?

I think my entire family, I kind of have a little bit of everybody in me.

My mom, she was very outgoing, always found a way to find a solution.

So I had her as a role model growing up in my father.

He was always putting together a deal, you know, Italian man always having his friends

over and his conspiracy theories.

And of course, his business that he started, which was Lubebella winery.

So I grew up in that environment.

So I think having both of those great role models in my life and I still have my parents

in my life are really preparing for that moment.

I snapped into action and I just kind of worked out.

So Lubebella, you're, I think the title there is Chief Growth Officer.

Yes.

I like that.

I need one of those, Josh.

We got to note that.

I don't think I have a Chief Growth Officer, but we got to get one of those.

I like that.

Tell me a little bit about the Lubebella that I pronounced at the right way.

Yes, he did.

Absolutely.

Tell me a little bit about it.

Lubebella was started by my father in the early 2000s.

It kind of was a positive thing out of an unfortunate situation.

This, I really haven't told this story before.

But my father used to work for the Ohio Department of Transportation, Paving Roads, and everything

in between.

And in the late 90s, he was eating lunch in his truck and a drunk driver ran through

a red light and hit his car at the T-bone.

So my father had six and still does six dislocated discs in his back and neck.

He wasn't able to work because he was in a lot of pain.

So he just didn't know what he was going to do next.

He didn't want to earn workers' comp if the rest of his life and not do something.

He liked to be active and be creative.

So my father started sharing my grandfather's wine and the wine that he made with him together.

And people were like, oh, I need more of this wine.

Do you have more?

He gave it away.

And he didn't have any more to give.

So he's like, oh, maybe if I created some wine, got a license, I could sell it and make

some money for my family.

Well, my father started a wine juice business, bringing in fresh juices from California, selling

it to his friends and also making wine for his personal use and then got the license

to sell wine legally in the seat of Ohio.

We all started working with the Georusa Company.

They allowed my father to use some of the cooler space during season.

So he was able to bootstrap a little bit and see if the business had any viability.

And he sold out every season.

So he eventually bought a building on 224 in Youngstown.

And that's where we're at today.

So Louisabella kind of started as a fresh juice company, but we were now selling our

work.

Where's that add on 224?

So if you go past the Poland, Giant, Eagle towards Pennsylvania, we're on the right hand side.

Gotcha.

Okay.

I'm going to have to check it out.

I was just at Aquapazo recently.

Have you been there?

Yep.

Yes, I have.

So the Georusa Company, you know, I'm really good friends with Tom Zyden who owns Aquapazo.

It's definitely a full circle moment.

You know, his family, his father helped my father get started and we still have a great

relationship till this day.

So we personally love Aquapazo as well.

And because of the Georusa Company, we were able to get started at Louisabella in the

early 2000s.

Wow.

Beautiful.

So that tells me a lot.

It sounds like your family's had a lot of influence on the direction of where you went

with your career and business and all of that stuff, huh?

Yeah, absolutely.

We're very close families still are.

So knowing that I have had such a privilege to have a supportive family is something I

don't take for granted and it's something that I try to pay forward through mentorship

on an entrepreneur in residence at Cornell and help people in young town with their businesses.

So it's something that I know I had that privilege and I try to do what I can to help others

along the way with it.

What was it like to start working with Walmart?

What was that interaction?

It was scary to be honest.

I didn't get a chance.

I went through their open call program in 2017.

It's Walmart's program to help get businesses that are small and medium sized, CPUG brands

to start selling with Walmart.

And I thought they were going to say no, but I was like, I got to shoot my shot, right?

I was really lucky that they really enjoyed what I had to offer and gave me a test market.

My test market was a little more unique than most.

I had to literally drive store to store and convince every manager to give me a chance.

So every time I got a yes, I would email Walmart said, hey, the Bore Middle Highell Walmart

manager, Tom at the time said, yeah, let's bring it in.

Then we sent some product.

So it was a hand cell.

I drove all across Ohio.

It took me two years.

Wow, let's go.

So you had to meet with them all and sell them all one at a time.

Yeah.

It was so hard because you don't know, are they there?

Are they off?

Are they on vacation?

You show up during a meeting for two hours?

I was like, oh, Lord, but you know, the hard work paid off because I got to meet a lot

of really cool people.

A lot of patients, there's a lot of frustration with missing, you know, some opportunities,

but the people I met in those moments really have uplifted me in my business as I've

grown throughout the years.

So some of my friends that I met, their friends with me till today, they're working for

corporate.

So they know that I'm genuine.

They know I'm going to try to do my best by them and their business.

I'm not going to just sell them something and disappear.

I'm here for the long haul and having that real trust has really helped me grow Louis

Valois wines with the chain.

That tells me a lot.

I mean, to me, that's a big part of the story.

You know, without that, you know, there's probably not, you're probably not doing as much

business with Walmart.

You had to meet with everybody in person.

So I'm sure everybody would love that to have Walmart's business, you know, getting

it rolling.

How many people would be willing to hit the road for two years?

Because I'm sure people from the outside looking in probably say, oh, this girl, she just

got lucky and her family was, you know, already in that type of a business.

So that's why, you know, she's had some levels of success because you always have that from

people just that don't understand, you know, not necessarily haters, but just they just

don't get it.

They don't know what it takes.

They don't understand what you had to go through.

You know what I mean?

And hit the road.

But when I'm hearing that of like, wow, you know, I just spent nine weeks in a row on the

road, traveling into me, you know, that I'm like, this is a lot.

You know, I don't want to be on the road nine weeks in a row, but that's what was required,

you know, at that very moment.

And to hear you on the road for two years, you know, that sounds, you know, expensive with

time more than anything, you know, hotel gas hotels, but just time.

And did you get 100% yeses that everybody say yes?

Because I could see you closing everybody.

I wouldn't be surprised.

No, definitely not.

I still have trouble to debate.

I mean, not everyone understands.

It's a really big company.

So, you know, I go where I'm welcome and I try to explain, you know, what we have to

offer, but it was hard.

I, after about two years, we got about 60 stores on board, which was a lot.

I didn't go all of them in Ohio.

I mean, I didn't make it down a since the end of the time.

I was mostly focused on Northeast Ohio, all the way to like Sandusky down a Columbus.

I was kind of, what I focused on because I figured if we were successful there, we would

be successful elsewhere.

I needed to figure out what the time I had in the distance and everything in between.

How could I control this test market because it was really something you had to be hands-on

because if your product sells out and you don't check on the store, is it going to be reordered?

Are you going to be forgotten?

You have to be there constantly.

So you could make sure that even though you've got to yes, it doesn't sell out.

And then it shows on the computer for Walmart data.

Oh, you've made zero sales in the last eight weeks.

Well, it's because you're out of stock, right?

So it was a lot of hustle.

A lot of people don't know that I started a company separate from my parents.

I had my own LLC.

I did my own accounting.

I paid my own when, invested my own dollars.

I had a manufacturing contract with my family.

So I paid for the cost and the manufacturing of the product, the glass, everything.

And I've made pretty much zero money in the first two and a half years because I didn't

realize at the time.

It was super costly to sell one skew.

It was my reds red blend.

So going all these miles, all these stores and only selling a box or two to each store,

I didn't make much money.

So at some point, I was like, OK, I've got to start making some money at this point.

So I proposed to my family, hey, I know distribution, I know retail.

I've been on the road for the last two and a half years.

Why don't you hire me to work at Louisville, and I try to build your distribution business.

So I made...

pretty much minimum wage because I'm family. I'm rolling up trying to build a

distribution business and I got the ability to not only sell my product but I

was selling my family's products. It was more profitable for me to go to each

stop. So then fast forward I realized that we had a huge opportunity not with

just my brand but my parents brands purple rain and passion. So with my now

husband Evan we came together and said hey let's propose to your family to

buy them out. My parents were ready to retire and I did not want to wait for

succession or anything like that. So my father said hey make me an offer. Let's

get the valuation of the company from a third party. So Evan and I literally

put every penny that we had earned jointly together to put a down payment on

SBA loan to buy my parents out and that's how we did it. That's why we're at

today because kind of the dominoes they fell all at the same time it made sense

I had the experience he had experienced Evan you know the background and M&A

M&A sorry I can't talk today and entrepreneurship so it's kind of all made

sense. Unbelievable. Unbelievable. Those are the things that people would miss of

everybody loved to have a successful wine business and own their own business

but how many are willing to go two years plus doing all the work and not making

the return you know immediately and the investment of time and how many knows

you know I think you said you were in 61 months. How many knows do you think

that you got on on the road out there? A lot. Not considered Walmart but other

stores too. What percentage? I'm probably got a 60% yes rate. I knew how to I

knew how to put myself together and sell the product but I think 60% closer 40%

knows that's a lot of knows though too. Yeah it was but I turned a lot of those

knows into yes is later. I took notes I remember who I spoke to because

actually go to hundreds of stores they all blend together so you want to

remember oh I spoke to Lori at the I spoke to Lori at Builers so I was really

trying to make sure I was putting things together right so I really put it

through the notes and was really organized. Seemed like you know from what I've

understood you know 2013 to 2020 you know your company was doing good and then

over a couple years there was a ton of growth and expansion you know

tremendously 2020 to 2022. Tell us about that what did you see that helped you

take that from good I know a lot of it you've explained but took it from good

the next level. Sure I think it's a great question I really haven't been able

to answer that before so it was two things. Evan and I took over the acquisition

was closed in May 2020. It was the middle of the pandemic we had no idea how

it was gonna go but we started the bed on ourselves and a few months in we

realized a lot of our competition could not fill the shelves with wine so

with the supply chain issues we had enough of glass we had enough supply so

with looking in the history of Lou Vuebella I knew some of our brands in the last

five years have grown consistently at a value had great sales year over year in

a diverse group of retailers so I knew if I pitched a distributor outside of Ohio

I knew we were gonna be successful I did not want to pitch the company during

this pandemic and then it was a big flop because I had that data and we had the

sure to supply I decided okay let's try to get one new state and see how it goes

so we launched in Memphis Tennessee with Athens distributing in November 2020

and it lit on fire I could not believe how much wine we sold we were only in

nine stores nine Wal-Mart's okay we always launched nine locations I wanted

control it because the one thing you have to learn and sales and something that

I learned a hard way if you aren't sure about something don't do it because if

you cross that line and you get that opportunity and it blows up in a bad way

you're you're branding yourself as someone that isn't trustworthy and your product

doesn't sell so I want to be really strategic about where I started started

but we sold I still think this is a actual number 2,793 bottles out the cash

register and nine stores in three and a half weeks awesome crazy I lost

at it because it's unbelievable it's it was in the right spot I partnered with

a market manager Sean he was amazing Sean Kathy from Memphis they put us in

the right spot in the store or customers to find it we had great point of

sale we did some advertising on social media so it all lined up it wasn't

just because it was in the store like you had a plan for it but it was just

the perfect combination everything and people really enjoyed the wine and it

was a repeat purchase you know they like the packaging at the beginning but they

came back for more and now you started to business with one person and now

you're you know you got thousands of stores I think that you're dealing with

sounds like thousands of bottles of wine getting pumped out what is your

advice on leading others because I'm assuming that you have other people helping

you yes we have a team about 35 at Louisville right now and we have a really great

team really great culture I think the best advice for leading is to lead by

example be very clear communicative showing that you're showing up not for your

company but for others as well making sure that you are doing everything you

can as a leader to support your team and with that it's the dominant effect

everyone sees that and wants to lead by that example too and it really creates

the positive culture of a company that wants to do good by not only you but

for them and the group as well so that's something that I've seen do really

well like my husband he works at Louisville I work from home most of the time

I come in a while he's the first one there in the last week and I think that's

so important because if your boss isn't showing up why would you right come on

give it to him that's the truth a lot of people want to lead but the first first

person you got to lead is yourself and I think the biggest form of leadership

starts with your example and so just to hear the support from you you know of a

lot of women a lot of men also just you know people in general couples the

other spouse doesn't understand they want that person home but they also want

them to grow to business you know at the same time how how important do you think

it is to have the right you know spouse and in people supporting because I

think that's a game changer what are your thoughts on that oh it's so important

I'm really fortunate because Evan and I both grew up with family business and

Evan has seen the pros and the cons and so have I and we both agreed going into

business together that we would speak from one voice I feel that when you have

two motivated individuals sometimes although you're on the same team that kind of

gets lost in translation because you want to be the powerful one you want to

be the leader but when you realize you're on the same team and you have the same

goal you need to come together and make sure that your message is the same at

all time so we agree that we speak from one voice and that we agree upon things

before we make a decision or if I need to make a decision in my department which

is you know the sales and distribution Evan trusts me to make the right

decision for the group and I trust Evan to make the right decision for the

group in his department so it's not like we have to micromanage each other we

know that we're literally on the same team and we have a really good think

really good a sacredistic message and leadership style huge what are what are

some of the adversities that you faced as a young woman operating you know your

own company and you know how did you overcome some of those adversities I have to

say the one history has been more progressive than ever I have seen a lot of

great changes and a lot of companies welcoming me more than ever as a woman but

there's always a couple individuals that are still really rude really sexist I

know if I go into this meeting by myself the outcome will be different

versus if one of my male counterparts were involved so there are some

unfortunate circumstances like that but for me I know when the situation it is

gonna be like that and I prepare I make sure that I am well versed in what I'm

supposed to do to accomplish in that meeting and I know at the end of the day

that regardless of who I am what I look like I'm educated I'm in this meeting

because I'm at a value and I'm here to make sure that we're having a successful

partnership and I will stick up for myself in a professional manner but

sometimes it is tough so I think the the long-winded or the short term

answer for that is you just got to know who your audience is and who you're

dealing with and be prepared to handle it because unfortunately in this

business if you don't handle things properly when it's negative you can get

completely barred from the business in a certain sector so yeah it's

a lot it's a lot it seems like you know the past few months on social media you

were documenting a lot of your travel and it's crazy schedule as you were

expanding into new states so talk to us a little bit about that you know what

was that what was that like that travel that schedule that grind you know what it

what does it require you know because outside looking in you know people

probably again you know man she's lucky you know it was easy you know for her

her family was already there that's why you know and stuff like that so in your

mind you know how would you explain to somebody here's here's some of the

sacrifices this is what that schedule required this is what it has required

today and all sunshine rainbows yes it requires a lot of uncomfortable

situations and what I mean by that is putting yourself out there in moments

that you might have outside of your comfort zone going to stores and meeting

people for the first time are they going to be excited to meet you and learn

about your products in your company you have might have to travel to new

place by yourself or overcome challenges that are really hard to discuss like

you know on this podcast like for example I have a trip upcoming to go to

North Carolina next week on Monday and Tuesday and part of that trip I have to go

to several stores that bought a bunch of my product in the Christmas season and

they switched out the displays and I have like 20 cases of my lines in the

back room they're not putting it out it's not selling and it's not going to sell

until it's back out on the sales floor so after many fail attempts to get

things resolved I'm gonna be driving all over the state to meet with those

stores and try to rectify the situation because once the product is out it

sells but there's a lot of layers a lot of layers of people you have to go

through to get those things done you can't always just do it from your your

computer or you can't always have your distributor fix it because they have

another thousand other food and beverage items to sell so that's a challenge I've

been doing with since January and no we've gotten some of it resolved to have

Cecil my territory sales manager out there today working on it but I'm

gonna lie down and try to fix it but there's a lot of emergency throughout the

week we have to handle not just something like that but distributor politics

getting into retail and what it's like handling those relationships every

every morning you just don't know what's gonna come in your inbox so

documentary documentary all the documenting can't talk all these travels I'm

trying to be a little more transparent because I don't know if you listen to the

podcast how I built this by Guy Rez but they talk about these companies like oh

dang snacks like the coconut chips they talk about the back story the knit and

grit to get started up but they usually skip the distribution how did you get

in those thousand retail locations right so I thought why not share that I've

been looking for that information I'm sure others are looking for information

so I want to share that I want to be the person that shares the stuff that you

might not want to show yeah so what is that you know give me what's that schedule

look like you know is that what is your current schedule how would you

describe your schedule to someone currently right now

You have tons of free time.

Are you super busy?

Do you need to stay super organized?

How long are you going?

How hard are you going?

I know you mentioned your husband.

First one in, last one out.

What is your schedule and what has that schedule

as you expanded?

What did that schedule look like?

Yeah, so I work from home.

So him and I both start at the same time,

but I'll just do all my sales and all the strategic

distribution growth, like the projections or working

with retailers having meetings, just because we

have outgrown our office space at the winery.

And since most of my sales team also

works remote like Cecil.

He lives in North Carolina.

Kenna, she works from home most of the time.

She's from Canfield, but she also works from home

because of her sales role.

And we also have another support figure

at the winery Delaney.

But she's in the office with average.

It's overcrowded.

So this way since most of my team works remote,

it's still the same.

So average, I will go out and market to two states twice a month.

Last week we were in Tennessee.

Next week I'll be in North Carolina.

We're going in New Orleans.

They're trying to meet us in distribution down there.

And I'm going to Alabama and July.

So I try to do at least a couple of market visits each month.

So every day is different.

There's a new emergency.

I have to handle it in my inbox usually.

Some unknown unknown.

I'm sure you deal with fires all the time.

All the time.

I like to say, be productive.

Don't be busy.

You want to make sure that when you are working,

you're getting stuff done.

So I could work eight hours a day.

I could work 12 hours a day or something in between.

As long as I'm actually doing something and move forward,

if I don't have something going on,

I might go visit the grandma.

I might look up other companies and what they're doing

and think about the future.

So I'm always doing something.

But I'm not going to just look at a spreadsheet

just to feel that I'm working.

Right.

Productivity versus being busy is a huge thing for me.

Well, as we start to wind down, there's a lot of entrepreneurs

that listen in.

And you start it, your company young.

What advice would you have for other young entrepreneurs

just getting started out?

Do not be afraid to put yourself out there.

I didn't find what I was passionate about

until my senior year of college.

And it's only because I decided to speak up for myself

and asked to do something I actually enjoyed.

And once I got the ability to do that,

I was like, I'm going to be a little bit more

I started networking.

I went to meetings.

I joined some entrepreneurial groups on campus.

Previous to that, I was too afraid to just try.

I was too afraid to put myself out there

because I didn't want to be rejected.

But my father gave me a piece of advice that changed my life.

And it was, the answer is always no if you do not ask.

Mm.

So if you don't ask, you're already rejecting yourself.

So why not just get rejected, right?

Ask away, you only need one person to give you a chance.

And that's what catapulted my success.

One person gave me an opportunity that led to another.

You gained some trust, gained a network that understood what you're about

and it kind of all progressed from there.

I see what you do for your company.

You're always out there.

You're networking.

You're at all kinds of places with your conferences,

leading your people and sharing messages

of the same type of hustle.

And that's what it takes to be successful.

Showing up, putting yourself out there

and showing that you actually have a value to offer.

It's not just one way.

It's both ways and sales.

Amen.

Well, it's easy to see why you're the person in charge

of growth and why your business is growing.

And it's amazing to see what you and your husband are doing.

What a bomb squad.

What a power couple.

Thank you.

Look forward to meet them one day.

So congratulations for everything.

I know you're just getting warmed up.

Keep doing the work.

Keep it up.

I'm looking forward to tasting your wine.

I got to come to your place now.

I look for a reason.

I have to.

I'm in Youngstown a decent amount.

So we're going to have to get in touch and see

if I can come out there and taste some of the goods

and see what you got cooking over there.

Because I know you're growing.

So you got to be doing something right.

Thank you.

Open invitation for sure.

You and your team.

How would somebody go about contacting you

or following you or anything like that

with social media platforms?

Sure.

You can find a lot about Louis Bella on our website, which

is www.LouisBella, which is l-u-b-a-b-l-a.com.

Or if you're going to reach out to me personally,

most of my social handles are the same on Facebook, Instagram,

TikTok, Twitter, if that Merissa Surgy,

1S for Merissa and Surgy is F-E-R-G-I.

Love it.

Congratulations on everything.

You're an absolute beast.

You're an absolute beast.

You've got to get you back on here.

I could have went for another hour with you.

And so much stuff that I'd like to pick your brain on at a later

date.

So we'll just have to bring you on another time

if schedule permits and if you're open to it.

But very, very, very good job.

Congratulations.

And we appreciate the value that you've

added to our listeners out here.

I know people's lives are going to be impacted

by hearing your story.

So congrats on everything.

And those you out there, thanks for joining us on another episode

of the Grindcast.

Get ready.

It's a new day.