How This Brewing Company Tapped Into New Revenue Streams By Putting Their Drinks In People's Fridges Tiago Carneiro, of Novo Brazil, discusses expanding a business model, selling packaged goods, and having big ambitions.

By Shawn P. Walchef

Key Takeaways

  • One of the most important things to consider for your business is alternative revenue streams. It’s also one of the hardest to achieve.
  • By boxing their products for sale, and developing partnerships with retailers, Novo Brazil was able to expand outside the walls of their physical locations.
  • Novo Brazil’s Tiago Carneiro says a restaurant needs to be a destination for customers.
  • Novo Brazil does things big, but Tiago Carneiro knows that strategically planned growth is important for sustained success.

Opinions expressed by Entrepreneur contributors are their own.

Restaurants can think OUTSIDE the box by putting their products INSIDE a box.

Tiago Carneiro, founder of Novo Brazil Brewing Company in San Diego, likes to say he has "Five Hearts" pumping at once: one beats for his award-winning beers, another for his line of NOVA Kombucha drinks, and then there's his love for Novo's restaurants, non-alcoholic brews, and hard seltzers.

5 hearts for 5 parts of a brand that began with a modest brewing operation, but is now so much more.

Novo Brazil isn't building a business, it's building a family.

"It's like a relationship, right," Tiago Carneiro said to Shawn Walchef of Cali BBQ Media. "You don't build it big from the beginning. You start building day by day, proving that your products sell, proving that you have high velocity, that you deliver on-time, that you are always there….

With even more restaurant and retail expansion on the horizon, the many hearts of Novo Brazil continue to pump stronger every day.

Creating New Revenue Streams

Tiago Carneiro and Novo Brazil have tapped into new revenue streams by bringing their food and drink brands to customers, whether that's on the shelf of a grocery store, at local sporting events, or in a traditional restaurant setting.

"It's really important that the customer, they can have you in their home as well," Tiago said when touring Novo Brazil Brewing's canning facilities on the Toast Family Style streaming series.

Novo Brazil uses technology like Toast to track sales trends at his restaurants to see which products are selling best and why. Then the top sellers can end up being offered in other locations like at a local market, stadium, or other spots.

There are few industries harder to survive in than the restaurant biz. Knowing how to create alternate revenue streams like producing consumer packaged goods for your business is an important part of diversifying your income stream.

By selling branded products or implementing unique partnerships, there are lots of other ways to get your brand to customers than just a restaurant's four walls.

To be a sustainable and profitable business in the modern era, owners and operators can no longer rely on just selling food inside a traditional location.

Figuring out how to sell your own packaged items will help you not just survive, but thrive in the restaurant industry.

Brewing Beer Was The Beginning

"Brewed in California, but inspired by Brazil," the Novo Brazil operation has been brewing the future for many years.

Beer was just the beginning for the Novo story.

San Diego is a natural spot for a craft beer operation, considering the region's long legacy of housing amazing brewing companies. Starting with lager, Novo built up their offerings with demand.

And demand there was. They refer to themselves as the "only brewery that cans happiness" for a reason. Novo's popular mango IPA was one of the first such brews on the market.

Novo Brazil Brewing opened its first location in its Chula Vista headquarters in 2015. Now they have multiple spots, including a 12,000-square-foot brewpub built for customer comfort and ultimate hospitality.

"Number one is the community. How can we build something unique for the community," Tiago said. "Because we want people to feel at home, have fun, enjoy the sports, enjoy the food, enjoy the beverage…"

Tiago and team also expanded again in 2018 by brewing NOVA Easy Kombucha, a popular fermented and effervescent tea drink that comes in alcoholic and non-alcoholic varieties.

The first place Novo sold their cans was right across the street from one of their locations at a Barons Market.

"Barons was the first one to believe in our brand," Tiago said.

These days the company has the capability to produce 10,000 cans per hour.

Along with Novo Brazil Brewing restaurant locations and in the Snapdragon Stadium in San Diego, the company's products can be found on the shelves at Ralph's, Sprouts, Vons, and more.

NOVA Easy Kombucha even created a San Diego Wave FC branded Wave FC Kombucha drink.

"We are delighted to be a part of this collaborative effort with our partners at NOVA Kombucha. Our players and staff were thrilled to be included in the creation of La Ola Dragon Fruit, as it truly is a drink as unique as our club," Jill Ellis, president of the San Diego Wave FC, said in a statement.

From making craft beer, to stocking canned kombucha, to operating numerous expansive and entertaining restaurant locations, the future is big and bright for Novo Brazil.

"Make it real, make it your own brand, your DNA, your soul," Tiago Carneiro advises anyone jumping into alternate revenue streams for a restaurant brand. Then the consumer will understand (your story) and will buy it."

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About Restaurant Influencers

Restaurant Influencers is brought to you by Toast, the powerful restaurant point of sale and management system that helps restaurants improve operations, increase sales and create a better guest experience.

Toast — Powering Successful Restaurants. Learn more about Toast.

Shawn P. Walchef

Founder of Cali BBQ Media

“Be the show, not the commercial.”

Cali BBQ Media Founder Shawn Walchef helps brands and leaders leverage the new Business Creator Economy with strategic Smartphone Storytelling and Digital Hospitality.

His Cali BBQ restaurant company has generated more than $35 million since opening in 2008. They operate numerous locations in San Diego and beyond.

Shawn’s weekly video series Restaurant Influencers (published by Entrepreneur Media and produced by Cali BBQ Media) has been seen by over 25 million people.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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