# Investor Spotlight: Alcohol & Vice Investing with Jason Sherman of Top Shelf Ventures

- Show: [The Startup CPG Podcast](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast)
- Published: 2025-08-16
- Length: 52m
- Episode: 183
- Page: https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2025-08-16-investor-spotlight-alcohol-vice-investing-with-jason-sherman-of-top-shelf-ventur
- Listen: https://share.transistor.fm/s/4f8db92e

## Summary

Jason Sherman, Co-Founder and Managing Partner at Top Shelf Ventures, an early-stage fund focused on alcohol and vice brands, shares insights from his background at AB InBev and his experience founding Tapir. He explains that investors prioritize velocity and retention over broad revenue, advising founders to target specific high-velocity markets like New York or Miami rather than expanding prematurely. Sherman highlights the importance of achieving 50% gross margins and profitability by the $1-2 million revenue mark, noting that exits in the alcohol sector often occur at much lower revenue thresholds than other CPG categories due to the operational complexity of managing hundreds of distributors. He advises founders to be open to early acquisition discussions while avoiding minority stakes with major suppliers, and to focus fundraising on inventory and proven marketing levers like sampling.

## Outline

1. Introduction: Jason Sherman and Top Shelf Ventures
2. Defining the 'Vice' Category and Investment Mandate
3. Key Metrics: Velocity, Retention, and Proof Points
4. Distribution Strategy: E-commerce vs. On-Premise
5. Operational Lessons: Raising Capital and Avoiding Dilution
6. Exit Dynamics: Why Alcohol Exits Happen Early
7. Fundraising Advice: Metrics, Team, and the Ask

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)

## Most relevant to

early-stage companies

## Mentioned

- Top Shelf Ventures (company)
- AB InBev (company)
- Tapir (company)
- Grazzi (product)
- Misguided Spirits (product)
- Su Casa Mezcal (product)
- Yoju (product)
- Tito's (product)
- High Noon (product)
- Zyn (product)
- Heineken (product)
- Corona (product)
- White Claw (product)
- Truly (product)
- Carblis (product)
- Surfside (product)

## Related episodes from other shows

- [Advice Line with Travis Boersma of Dutch Bros](https://hardwarepodcasts.com/podcast/how-i-built-this/2025-02-13-advice-line-with-travis-boersma-of-dutch-bros) (How I Built This)
- [Advice Line with Jim Koch of Boston Beer Company](https://hardwarepodcasts.com/podcast/how-i-built-this/2024-08-08-advice-line-with-jim-koch-of-boston-beer-company) (How I Built This)
- [Advice Line with Randy Hetrick of TRX](https://hardwarepodcasts.com/podcast/how-i-built-this/2025-09-25-advice-line-with-randy-hetrick-of-trx) (How I Built This)
- [21 Seeds: Kat Hantas](https://hardwarepodcasts.com/podcast/how-i-built-this/2024-10-21-21-seeds-kat-hantas) (How I Built This)
- [Advice Line with Steve Ells of Chipotle](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-04-09-advice-line-with-steve-ells-of-chipotle) (How I Built This)

## Citing this page

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