At first glance, one might not bat an eye about an industrial complex near a technical school in Columbia, the state capital of South Carolina. There is no large plant, nor large silos painted with cow-related colors. 

However, the Palmetto State is perhaps where the next great dairy segment has been born: alcohol-infused ice cream. At the forefront of the alcohol-infused ice cream movement is PROOF Hard Ice Cream, led by Jennifer Randall, co-founder and CEO, and Dirk Brown, co-founder and chairman, who founded the start-up in 2014.

PROOF Hard Ice Cream, which employs more than 30 people, infuses many hard liquors, including bourbon, tequila, and mezcal, as well as distilled spirits such as fortified wine into its handcrafted flavored ice cream.

“There are a few imitators, but PROOF has perfected the skillful blending of regulated levels of alcohol and the creamiest ice cream you can buy,” Randall says. He notes that an alcohol-by-volume (ABV) of 5-7% works best in its hard ice creams. 

PROOF Hard Ice Cream has five core flavors and several seasonal flavors. Its current available flavors are Bourbon Caramel, Bourbon Chocolate Cherry, Strawberry Moonshine, Mocha Chocolate Moonshine, Cheesecake Moonshine, Blackberry Moonshine, Apple Pie Moonshine, Pumpkin Spice Moonshine, Peppermint Moonshine, Coconut Rum and Pistachio Rum.

Randall, originally from Mount Sterling, Ky., moved to South Carolina to start what she refers to as a “trailblazing new category of hard ice cream.” 

Brown, who grew up in Canada, came to the United States to pursue a Ph.D. in material science and engineering. He served the technology industry for 25 years, including many in California’s Silicon Valley and noted he is “really excited to be building this new gourmet product category.” 

While the story of hard ice cream is certainly unique, so, too, is the way Randall and Brown ended up in South Carolina. Randall notes that her home state of Kentucky is known for three things: bourbon, horse racing and basketball. She parlayed her skill set into the latter, earning a basketball scholarship to the University of South Carolina. 

“Athletics prepares a CEO with the grit, determination, never-quit resourcefulness a start-up requires,” Randall stresses. 

While the CEO enjoyed a great collegiate experience in South Carolina, she decided to also open PROOF Hard Ice Cream in the southeastern part of the U.S. because of its business-friendly environment and regulatory body, Randall notes. This is especially critical when processing a product that combines regulated levels of alcohol and food in one product.

This business-friendly environment led Randall, a single mother, to move to South Carolina in 2014. “I had a really old BMW at the time and did some taste tests in restaurants and bars throughout South Carolina. I wanted to get a proof of concept without investing too much money,” she recalls. “The response I received every time was ‘You can’t freeze alcohol.’ I said they should try it. Once they did, their eyes would get big and they would say ‘Oh my God. Where can I buy this?’ That is when I became confident there was a market for this product. That has proven to be a very valuable insight.”

Brown adds he was excited to get involved in the dairy industry because of the ability to change something that has seen little change in the past several years. “Disruption is very rare in the food and beverage industry. Every once in a great while a new product comes along that recontours the consumer landscape, and PROOF Hard Ice Cream is a prime example.

“We are developing a deeper understanding of the science involved in food and dairy that is a proprietary advantage,” Brown continues. 

Brown moved to South Carolina in 2011 to run the Entrepreneur Institute at the University of South Carolina. He still serves as faculty director for the McNair Institute for Entrepreneurism.

Brown met Randall via a former student of his. “I remember sitting across the table from Jenn at an Italian restaurant and she asked me to try something,” Brown recalls. “I had just flown in from a trip to Taiwan. I was really tired. I tried the ice cream, and my immediate reaction was, ‘I’m in!’”

A billion-dollar opportunity?

Randall and Brown determined hard ice cream was definitely a global opportunity and decided to implement a “go big or go home” approach. “We are in the pole position right now to dominate the hard ice cream category,” Brown asserts. “We are excited about our plans to extend our lead and establish PROOF as the standard bearer for this new category.”

PROOF Hard Ice Cream cannot continue to stay ahead of the pack without help. It partners with dairies and food science companies. It also retained a new Atlanta-based agency, Instigate, to lead PROOF’s next generation of branding and product innovation. Instigate has extensive consumer product experience with some of the world’s foremost brands such as Coke, Levi’s and many household brand names in spirits. 

Randall adds, “I know firsthand, in the clutch, a coach doesn’t go to plays, they go to players. We have attracted a world-class executive team led by Russ Klein as president and chief operating officer who has a distinguished track record in the food and beverage industry, including global president of Burger King. We’re also thrilled to have Rick Gillis, our new chief commercial officer, bring his deep experience with spirits, cannabis, ice cream, beverages and distribution to build a world class route to market infrastructure, leveraging his experience as president of Young’s Market Co. and executive leadership roles at The Tinley Beverage Co., Dean Foods and Coca-Cola Enterprises.”

Kim Bowman, vice president of communications, notes that the company is “very focused on an entertainment philosophy. It is about bringing people pleasure. PROOF Hard Ice Cream is an enhancement to any occasion.”

To get the word out, PROOF Hard Ice Cream uses digital advertising as its primary vehicle, often using its “Spoon-Pair-Sip” slogan. “We have been working with micro influencers and tested macro influencers during the summer,” Bowman says.

“PROOF is the pioneer of the Hard Ice Cream category and everything we’re doing is setting the standard for what will be a billion-dollar-plus segment within the $175 billion gourmet food and beverage market,” Brown says. 

A growing category

Randall acknowledges PROOF Hard Ice Cream is disrupting two major product categories, creamy ice cream and spirits, which caters to two of “life’s greatest indulgences.” 

“It is a great incremental profit generator for retailers to offer their customers, and we’re confident in our growth prospects,” Randall points out. “But it is very humbling at the same time. I thought two-a-day [basketball practices] were hard. No way. This is like 10 years of two-a-days, but has been a lot of fun and very satisfying.” 

Consumer feedback has been excellent thus far, with consumers enjoying comfort foods during the COVID-19 pandemic. This led to recurring revenues today as COVID dissipates, Randall notes. “It is a festive, celebratory product. We have what I call ‘super fans’ who purchase four or five pints a month.”

PROOF Hard Ice Cream is an excellent choice after someone had a long day at work, Brown adds. “We are a magical indulgence in some ways. We have a unique combination of flavorful, creamy ice cream with great mouthfeel and smooth spirit afternotes in the same spoonful,” he says.

Interestingly, PROOF Hard Ice Cream research found that its product is also a hit at parties. Although people can always bring a bottle of wine as a party guest, a unique thing to do is bring a pint of the company’s Bourbon Caramel ice cream, for example. 

“It’s a people pleaser at lots of occasions. Gourmet food lovers, explorers and entertainers,” Brown maintains. “PROOF Hard Ice Cream is a super-premium yet affordable indulgence that speaks to a mindset shared by everyone. Everyone loves to indulge.”

Another advantage for PROOF Hard Ice Cream is that it has unique, year-around appeal to adults for any social occasion that extend its relevance beyond traditional warm-weather seasonality. 

“This signals to us that folks are buying our product across a range of occasions from backyard barbecues and girls’ night out to holiday meals and gift-giving. Nothing brings out the smiles faster than the treat of an indulgent ice cream combined with the flair of spirits. Our flavor profiles cater to these occasions,” Randall states. 

Overcoming challenges

Randall and Brown knew they had a good product that consumers would want. Although that is at least half the battle, PROOF Hard Ice Cream had another huge task: educating retailers about hard ice cream and why they should allocate shelf or floor space for the product.

“Unlike ice creams flavored with trace levels of alcohol, nobody was familiar with true hard ice cream. So, we had to start heavily on the local side in South Carolina. We worked with a lot of independents and also got the opportunity to get into [alcohol retailer] Total Wine & More,” Randall explains. “We were fortunate to parlay that into a meeting with Lowes Foods, a grocery store chain with about 100 stores. We rolled out the product at those stores just before the pandemic started with the last freezer install in March 2020.”

The sales results for Lowes were outstanding, Randall continues. “We aim to educate the retailers first. Once they taste the product, they can see the vision behind it,” she says. 

Today, PROOF Hard Ice Cream is stocked in more than 600 stores, including Walmart, Piggly Wiggly and Schnucks, with its products now sold in several states beyond South Carolina, including Florida, Missouri, Wisconsin and Illinois. 

“Lowes Foods and Total Wine & More were pivotal for us. They gave us the opportunity to prove ourselves to the market,” Brown stresses. “Then came more than 100 locations in Walmart. Every new account means a dedicated PROOF Hard Ice Cream branded freezer on the retailer’s floor and it’s our responsibility to ensure every freezer creates value for everyone who does business with PROOF from distributor to retailer to consumer.” 

PROOF Hard Ice Cream works hard to ensure only those 21 or older consume the product, which can be a challenge as well. Its packaging includes alcohol-ingestion warnings and passes all federal requirements, Randall explains.

“This product is for anyone over 21 who wants to treat themselves to a unique frozen dessert experience,” Randall says. 

She adds that product packaging also avoids pastel colors that other ice cream processors employ. “Differentiation is our goal because PROOF Hard Ice Cream is truly different.”

PROOF Hard Ice Cream responsibly “age gates” its website and social media to reinforce its “adults only” consumption. At retail locations, whenever a Proof Hard Ice Cream UPC code is scanned at a checkout location, consumers are required to present identification.

In addition, all marketing materials say “21+” and often carry a “Spoon Responsibly” moniker, Bowman adds.

Ecommerce is another opportunity that also presents a challenge for PROOF Hard Ice Cream. Shipping on dry ice is expensive and the product requires an adult signature when delivered by UPS, Proof Hard Ice Cream’s third-party logistics partner. “But we have loyal customers throughout the country, and future plans to elevate their experience as some of our best ambassadors,” Randall adds. “We can ship to 42 states. Eight states do not allow alcohol shipping of any kind.”

Regulatory effort

Selling PROOF Hard Ice Cream in new states is part of the daunting regulatory challenge the company faces. When attempting to sell its products in a new state, the first thing PROOF does is speak to the Alcohol Beverage Control authorities of a given state. That is the beginning of a comprehensive legal and regulatory process that is becoming “an invaluable IP advantage for PROOF,” Randall shares. 

There is a benefit to the process, however. Other hard ice cream competitors have a steep hill to climb, as they both must find the right formulation recipe, as well as navigate and meet regulatory standards. Hence, PROOF Hard Ice Cream is extremely difficult for a competitor to copy. “Sometimes, competitors try to enter a state before us and they get shut down,” Randall reveals. “We make sure to go above and beyond on the regulatory side and prove we are knowledgeable, responsible, corporate citizens.”

PROOF is committed to being the “gold standard” in the new hard ice cream product category, Brown adds. “The regulatory environment is fairly new. Our company has played a leadership role, working with legislators and regulators to ensure that the product category thrives under appropriate regulations,” he says. 

PROOF self-governs itself as well, Brown adds, making sure it holds itself to high standards in several areas, including packaging. “Everyone has done a great job of understanding how to bring the product to the consumer and run a business, and protecting the consumer on the other hand,” he says. “We take that very seriously.”

Growth plans

When it comes to the future, Randall minces no words. “We want to continue to own this space,” she says. “Part of our strategy is continuing to grow domestically while looking at international opportunities that have been coming down the pike. For example, in Central and South America, we have folks that reach out to us on a monthly basis that want to carry the product. Once people get wind of us, they want to know more.”

Not only is hard ice cream a new category in North America, but worldwide. “There are some smaller niche brands, with Europe being the most mature market,” Brown says. “But it is a new market because it is very hard to do.”

Ice cream with inclusions is another avenue PROOF Hard Ice Cream is soon traveling, Brown adds. “Our product ranks up there with the best-selling premium ice creams in the country,” he states. “We aspire to be the best tasting, creamiest and most enjoyable ice cream in the world, bar none. Regulated levels of alcohol in the ice cream is what differentiates us.

“PROOF Hard Ice Cream is an entertaining ‘feel good’ experience. If you are not looking to indulge, we might not be the right product for you,” he concludes. “But we are the best at what we do.”