From Apothecary To Icon. The Rise Of Fernet-Branca In America.

0:10Hello, friends. I'm Ray Lateef, and you're tuned in to Taste Radio, the leading podcast for entrepreneurs and innovators in the food and beverage industry. In this episode, we're joined by Eduardo Branca, the managing director of Branca USA and a sixth generation member of the legendary family behind the iconic Frenette Branca brand. How did a 180-year-old Italian digestif become one of America's most beloved bar staples? Though Frenette Branca has enjoyed a storied legacy in Europe since its creation in 1845, it remained a niche curiosity in the U.S. for much of its life. The intensely bitter herbal liqueur was appreciated only by the most adventurous palates.

0:57Today, however, it's a fixture behind the bar from upscale cocktail lounges to neighborhood dive bars, most often knocked back in shot form and celebrated for its distinct flavor profile. Who better to trace Frenette Branca's unlikely rise than Eduardo Branca? We caught up with Eduardo at Spirits Industry trade show Bar Convent Brooklyn to talk about how Frenette Branca earned its cult status in the U.S. He shared insights on the brand's roots, its journey from obscure digestif to bartender favorite, and how the company is carefully evolving to stay relevant in a fast-changing drinks culture. From navigating pricing pressures to expanding the Branca USA portfolio with modern consumer-focused offerings, Eduardo offers a glimpse into what it takes to steward a legacy while embracing innovation.

1:52Hey folks, it's Ray with Taste Radio. Right now, I am honored to be sitting down with Eduardo Branca of Fernet Branca. Eduardo, great to see you. Good to see you. Hi, Ray. Thank you for having me here. Yeah, yeah. We're here at Bar Convent, Brooklyn. Yeah. I was going to say in Brooklyn, but that seems like it's a little redundant, you know, to say a convention that's named after the city that's in. Anyway, I didn't realize that you were based here in New York. Yeah, I moved here in 2019. February 1st, 2019 is when I moved here with the whole family, actually. Yeah. Where were you living beforehand?

2:27Before there, I used to live in the southern part of California for three years. And before that, I was in Milan, actually. Milan. Milan, yeah. Milan. I love Milan. A lot of people, they say I have a kind of a New York accent, you know? Okay. Inter-American. I was going to ask if you were an Inter or a Milan guy. Don't go there. I'm an Inter Milan fan. You're an Inter guy. Okay. Yeah. Unfortunately, yes. Well, not unfortunately. You still had a good season. I mean, it wasn't, you know. I mean, it ended with some disappointment. Yeah, but it was a good season. Very happy. Well, it's funny we're talking about soccer because I tried to find you, Eduardo Branca, on Instagram.

3:07And the only account with the name Eduardo Branca, with your spelling, because you spell it with two O's, belongs to a scout for an Italian football club called Atalanta. Yeah. And you're not that guy. I'm not that guy. No. I'm really not that guy. I actually, you know, Ray, I was really, really surprised because I looked it up because I could not believe it. And, yep, it's not me. And I can be a talent coach maybe in a second life. But, no, at the moment, no, that's not me, actually. It really blew me away. I have a picture of Corto Maltese on my Instagram profile picture, actually. What's the Corto Maltese?

3:46Corto Maltese is, I will call it in Italian, it's a fumetto. It's like drawings. And it is this artist nowadays. It's called Ugo Pratt, and he's kind of a sailor that travels all around the world. And it kind of has a little bit of a romantic history and a lot of history, and it's kind of nice. Okay. Did you play soccer? Did you play football? I play football, yes. I play once a week here in New York with a lot of Italians every Wednesday. Now that I'm getting older, maybe from November to February, I don't play that much because it's freezing cold here in New York. But the rest of the year, yeah.

4:22This is actually common for the podcast because we talk about soccer a lot. Okay. And I'm a Man U fan. Obviously, you can see my hat. Okay. Let's talk about bad seasons, right? Yeah. I will not go there. No. Yeah. But what position do you typically play? Left forward. Left forward. Okay. Yeah. Okay. I'm a left forward guy. Yeah. Are you left footed? Yep. Okay. Well done. Well done. Well, we're here to talk about more than soccer. We're here to talk about the Frenette-Branca empire. That's your, you're the fifth generation. Sixth. Sixth. I'm sorry. Sixth generation. I'm going to blame, I'm going to fire my stat checker here.

4:56No, because my father is fifth. That is Niccolo. Obviously, if you're the sixth, your father has got to be the fifth. Yeah. But no, it's amazing what Frenet has come to represent in this world. What Frenet Branca has come to represent in the spirits industry. And you are the managing director of Branca USA. What does that entail? Well, it's a lot of work. There is two parts of my job. One is, you know, looking at number, speaking with the distributors, traveling the country, speaking with the distributor. That is, I think, you know, a very important part, but is really, really boring between me and you.

5:35The second part is the one that, you know, I love the most and is the one where you speak with bartenders, you travel the country, you speak with bar managers, with bar owners, you know, and that's the most beautiful part because it's where you can relate a lot more because with a lot of these bar owners, bar managers, we can see there is a pattern where we have a lot of the same problems, you know, and it's beautiful. And then you can see the love that they have, you know, for Fernet Branca that really gives me, you know, motivation to go forward and move forward, actually. Yeah, I imagine it's very invigorating to talk to bar managers and bartenders about Fernet because it is an industry legend in some ways.

6:18the liquid, the brand over the past 15 years has become ubiquitous at bars. And it's very much a bartender favorite spirit. It's a little strange, right? Because Fernet for so long had been a spirit that was an Italian tradition, a European tradition, and then it blew up on the U.S. market. So I'm sure there's a lot of pressure on you and the company to maintain that excitement, that demand for Furnet and go beyond that. So how do you think about Furnet from the standpoint of this is an Italian tradition to the demands of the U.S. market, which is consume, consume, consume, spend, spend, spend?

7:06You have this beautiful liquid and then you have this crazy capitalistic market. So that's a very big question. And to answer you, for us it's very important to go around and sell and to consume more and more for net. But what we love about our product that is complicated, there is no sugar inside, it's not for everybody. so we really cater to our consumer and we really love our consumers that are bartenders that are people that have a little bit more of a knowledge on spirits you know and what i like about for ned branca is that it doesn't lie you get what you have you know same recipe pretty much zero sugar inside and it's something of really really really unique i spent so much time with a lot of bartenders, consumers all around the country and you know one of the biggest chats that we have and we always start a conversation is do you remember your first shot of her net?

8:10and every bloody person remembers where he had his first shot of her net and he will tell me oh it was in this bar at this time, I was with these friends it was unbelievable and it's something I really like And that's why for me as well, that I've been pretty much breastfeed for Netbranca. I, you know, I remember where I had my first shot of Netbranca. From the breast, apparently. But yeah, no, it's crazy. And I love, you know, what I love the most is about this community and how people tend to help each other. You know, I know it's not a bad time to remember, but during the COVID, you know, how this industry came together to help each other.

8:53And it's one of the things that I really, really enjoy about it and to give to other people, to help people. I think we have one of the most beautiful industries in the world, actually, here in the United States.

9:10As I mentioned, Eduardo, Fernet is everywhere. It's a bartender favorite. It's an industry favorite. How did it come to that? How did people who work behind the bar come to love Fernet as much as they do today? So there is a little bit of a double answer here. First of all, we have a motto in the family and in the company that has been brought down in generation, that is in Latin, Novare Servando. So to innovate, but keeping your roots. So we try to cater to every market, trying to understand the consumer. So if you come in Europe, Italy, Spain, Germany, and France, you know, Fernet Branca, you will speak with a consumer and that for them is a digestive.

9:57And let's be very, very clear. There's Fernet and there's Fernet Branca. Yeah. Fernet Branca is your brand. Yeah, and it's the original one. It's the original. And so Fernet Branca and pretty much Fernet, I call it Fernet because in Europe there is only Fernet. Right. Fernet Branca. Right. And it's just here in the United States where you have a couple of other Fernets. But yeah, so there you will be drinking it as a digestive. In the 1970s, 80s, and early 90s, it was drunk as well as an aperitivo because of the properties. If you drink a little bit, it will open the upper part of your stomach and you will be more hungry.

10:33If you drink half a bottle, it will be wasted before dinner. I never knew that. I never knew that people were drinking it before dinner. Yeah, before. And I don't know if you ever saw there are small glasses, you know, really tiny like this that are in glass. And they used to drink a little bit of that before dinner. and literally if you try at home and you do it, you will get hungrier actually. And it's really, really unique. Well, I'm going to do that tonight. Yeah. And then if you go in England, Denmark, and the United States, it's more of a shot brand. It started mostly here in the United States because we had a sales rep, an amazing woman, that in the early 1990s in San Francisco, she used to sell Fernet Branca and she was going around saying that Fernet Branca was like a bong in a bottle.

11:27A bong in a bottle. I'd never heard that before. And that's kind of unique because, you know, when you have Fernet Branca, you know, you have the punchiness of the herbs, the alcohol that we're coming. It's like, you know, and with all the herbs. And, you know, San Francisco always has been a little bit more liberal as a thing. So as well, there was a lot of smoking involved. to convince people to drink it. And that was how we started. And she had a lot of good friends that were bartenders. And so it's how we started in San Francisco to sell a little bit more, but was in a completely different way.

12:01If you come to Italy, they will never tell you, like, let's have a shot of Fernet Branca. For them, it's like after dinner. If you go in the Nordics, Norway and Sweden, they will tell you, no, no, no, Fernet Branca is drunk in the morning as a morning drink. So you have your breakfast and then you have a shot of Fernet Branca. Don't get me wrong. I did some master classes in Norway, in Sweden. Yep. And to have a 7 a.m. shot of Fernet, I love Fernet. But it's a very, very strong way of starting your day, actually. Yeah. Well, for folks who are listening who have never had Fernet before, for me, it's bitter but delicious.

12:38For me, it's viscous but easily drinkable. How would you describe it? For me, I've been drinking it for such a long time. Since the breast, yeah. Yeah, since the breast pretty much. And so for me, you know, a lot of the bitterness, I don't feel it anymore. And that can be good and bad. Interesting. Because it's bad because I cannot drink a lot of other liquors. Because, you know, I like so much that pungent taste that is kind of really, really, really unique. And for me, it's gone. For me, I have the chamomile that comes out, the rhubarb. I have the zaffron. So it's more on the herbalish side.

13:18And, you know, I drink it neat. I don't put any ice. My bottle is room temperature, where for my wife, she drinks it with ice and she keeps it in the freezer. Yeah. I thought that was sacrilegious to have for that with ice. No? Yeah. My wife likes it. You know, I'm a purist. So it's really, really, really different. it. But, you know, at the end of the day, you can drink it however you want. It's important, though. It's important to help people know how to drink it or perhaps best practices for drinking Frenet. Do you drink it in a cocktail? Do you drink it neat? Do you drink it with ice? It's a really important way to build awareness and education for the brand.

13:55So if you have an approach that says, well, drink it any way you want and it's a very versatile spirit, okay, that might work. But I think in some ways the Frenet as a shot helped it put it on the map. Yeah. And so when you're trying to introduce new consumers to Furnet, what is the best education strategy? So it really depends on what we do is normally it's a beer and a shot during when you have... Still, so that's the best approach? Yeah, it's a beer and a shot. We do it all around the United States. Normally we try to do specials in the bars where all the bartenders, they go at night. you know we try to introduce it to as many people as we can normally how it's done is because of the bartenders they give us a hand because when you have your bar back you know it's like when you finish your shift and you have your first time doing the bar back job it's a tough job and you know at the end of the night you're tired you know you've been cleaning the place the whole night you haven't done any cocktails and anything they introduce you to having a frenet yeah because it's like you had a bad day so you should have a Fernet Branca that's going to really give you a pick me up and you will get back on track and so this is like the strategy that we try to to adopt and then mostly working you know with local bars and bartenders and this is the way that we try to give back to the to the community you know and a lot of people you know they come to me it's like Jägermeister, I Jameson, but I don't care that, you know, I prefer to have a community that is dedicated, where I can have a relationship.

15:39I know half of the bartenders that are here. At BCB? Yeah, BCB, because I've been in pretty much all the bars here, and because I love it, but because our good bartenders are people that love the industry. I think nowadays what we're missing in our industry is to have that human contact. There is something that is missing and that i love that have grown up with that and is you know i think that's not a part of it where you go there you do your master class you spend time with them you spend time spend money as well with them you buy a runs of shots and you hear you know what they have to say and things and some of them you know they became friends long-lasting friends that i know have been knowing for the past 10 years and i love that i think that's a big part of it i love bar culture I mean, I love sitting at a bar, talking to people who are sitting next to you, talking to the bartender, sharing a drink with someone.

16:34It's becoming less common among younger consumers, though. It's becoming a little bit watered down in some ways, at least from what I'm hearing, in that people are looking for lower ABV cocktails, non-alcoctails. People are just in general more health conscious about alcohol consumption in general. How does that affect what you're doing? How does it affect the long-term strategy for Frenet in the United States? So on that, it's true. There is less alcohol consumption nowadays. And there is, you know, a lot of problems that come around, the alcohol and drinking. But, you know, what I'm convinced is people have been drinking for the past 2 ,500 years.

17:15I think now there is, you know, people that are doing a little bit more of edibles. You know, there is a little bit more of marijuana going around. But I don't think it's going to be a problem in the long time. It's a moment. You know, I have cousins that they live here. We have Thanksgiving together, you know, outside of New York in the countryside. And like, you know, we have Thanksgiving dinner and we start at 3 p.m. and we go until 8 p.m., 9. They drink a couple of glasses of red wine. Then, of course, they're obliged of drinking something that afterwards. and then they eat a couple of edibles and they relax and they stop drinking.

17:54I think when they're going to get older, they're going to come back to drinking. So I'm concerned, of course, but I'm a true believer that when you have a family and you have kids, you want to drink. And so I think that the younger crowd is going to come back to drinking in a later stage of their life. I think I would tend to agree with you, although I think younger consumers don't appreciate bar culture as much as our generation may have. I think the idea of going to a bar to be social, to have fun, to try things that you may not have tried before, it's exciting. To me, it's exciting, I think.

18:34I've been going out in bars since a long time. and still nowadays when I have a couple of mates that they tell me like Eduardo let's go and have a couple of beers I'm excited I'm like wow the whole day I'm like thinking about oh I'm going to have a couple of beers with my friends at a bar I'm going to have a good time I'm not going to get smashed because I need to go back home and I have a wife and two daughters and I'm going to kind of behave but I'm going to have two free pints you know maybe one shot but then I go home and I'm But I think the... So you and I play soccer. I play soccer as well.

19:13And one of the best parts about an evening game is after you're done, you're going to go and have a pint. And I just worry sometimes that younger consumers aren't going to be able to appreciate that because they just don't know or just they're priced out of it in some ways. And I think for net on its own from a price point, it's a relatively affordable spirit. but sometimes the shots can get a little outrageous. I remember when a shot at Furnette might used to be four or five dollars. Now you go some places and it's 10, 11 dollars. What the heck is going on here? Is there a way for you to moderate, to affect the pricing that goes on, the gouging, I think, that goes on?

19:54That's not in my hand. It's in the hands of your president, unfortunately. Oh, well, yeah. I mean, I think, yeah, for sure, there's some of that that's going on. But I think this also goes back to capitalism, too, which is I think bars are looking at Fernet and saying, okay, well, you know, I could charge$5 for it, but I could also charge$9 for it. So what we do, and thank you for bringing us that up, you know, what we do, and when we have a bartender night, what we do, we have shots that are at discount that we do for that night because we want to have it at a cheaper price and it's something that we try to do, but it's very difficult because, you know, at the end of the day, they need to make money.

20:36And we try and things, but the product, we have 27 herbs that come from four different continents around the world. They need to age between 12 to 16 months. That needs to be produced. Then when it's aged, it needs to come here in the United States. Then from us, we buy it as an importing company. Then from our importing company, you have the free tier system. So it goes to the distributor where they take a margin. And then from the distributor goes to the bars or goes to the Tesco, Costco and things like this. So unfortunately, the problem as well that I think you have here in the United States is that there is a lot of steps.

21:20And we try to do our part and to try to put it down. But it's a difficult kind of. Now I know I don't like talking to distributors. I'm kidding. I'm kidding. I don't want, Eduardo didn't say that. I said that. I don't want to get him in trouble. No, no. Quick break. If this episode has you thinking about what's next in food and beverage, explore BevNet and Nosh Insider, our subscription platform with deeper insights from the BevNet team. Visit tasteradio.com slash insider to learn more. Fernet Branca is the primary brand. It's a flagship brand, but there's also other brands in your portfolio as well.

21:56and you've incorporated other brands into the company. And this goes back to the question you were making before that I lost. It's the lobby theme. We have alcohol. We are playing, you know, Fernet Branca. Next year is going to be 180 years old. Wow. Sorry, this year is going to be 180 years old. Next year, our Vermouth portfolio is going to be 200 years old. Wow. So we have brands like Antica Formula, the first vermouth ever invented, Puntemes, the Carpano range. And the vermouth are lower in IBV because they start from 14.6 % and they go up to 18%. And with those, you know, is what we make a lot of lower IBV cocktails.

22:43Then they're very doable because you can make a Manhattan or a Negroni. but you can have a very low ABV with the Antica formula and some soda water. It's amazing. Or if not, you can have the Carpano Dry with grapefruit soda. That is really amazing as well, that one. So they are both low ABV and they can be drunk and it's easier and kind of more refreshing. So as well, we have that part that is very, very important for us. And weirdly enough, you know, they're doing fairly well. Well, I don't think it's weird. I think, you know, it's on trend. I mean, again, the trend is to consume a little bit less alcohol.

23:22Maybe you still consume alcohol, but moderate your consumption. But is that the trend for your M &A strategy? When you're attempting to incorporate new brands into the portfolio, how do you evaluate those brands? Are they based here? Yes. So that's a very complicated question. And I don't want to overcomplicate the answer. but for me you know there are three pillars that are very important you know we would like to have something when we speak about M &A that is maybe oriented on family owned with the same value with a good background because we are you know the company is run by my father I give him a hand you know there is a little bit of my sister as well that is giving me a hand and what we do is It's not that we come in and the previous owner is like, okay, thank you very much.

24:16Get the hell out. We're going to change completely the company. No, we want to continue the relationship with them because I know that it's your baby. I know how it feels and things like this. So we would like to have something that is US-based because I know a lot of people make fun, but there is a lot of heritage as well here in the United States. I think there are a lot of small to medium business owners in the distilling world that are doing an amazing job. I know here now there are tough times and it's a tough period, but we're not the type of people and brand that comes in and we're not a big corporation that say, okay, now it's us, please go away.

24:56You know, we want to continue to work. We need to listen because you built the business. And so this is something that we're going to be more oriented to do something in. I'm really happy you said that, Eduardo, because the stigma that acquirers often face is that they're going to come in and change the culture. They're going to change the product. They're going to change the values. And it's the culture, it's the liquid, it's the values that made the brand what it is today. That is the reason that people love a particular product or brand. So for an acquirer, a potential acquirer to say, we're going to keep everything the way it was, you have to find a special brand for sure.

25:42I mean, it's on you to find that special brand, but that you're not going to mess with it. It says a lot. And I think that's, I mean, I guess that's been true about Fournette. When you have something that's great, don't mess around with it too much. No, and then on top of it, you know, I think I want to put the face and I'm all around where some other people, they prefer to hide behind an office, behind number and things like this. But I like, I want, I believe, in an ethic company, I believe that everybody has to be treated in the same way. Everybody needs to have everything. And I want to continue this.

26:16One day I want to have this done in the proper way. And this is what I believe. I'm right, I'm wrong. I think we're going to meet next year, but in 10 years' time, maybe we're going to sit down another time. And he's like, Eduardo, you were completely right. What a bullshit you said that day during my podcast. And I will tell you, yes, Ray, I was completely wrong. But who knows? You know, time will tell. Well, the one thing that I didn't get to do today that I'm a little disappointed is that I didn't get to have a Frenette Branca with Eduardo Branca. But I'm glad that we're here at BCB. And the reason we didn't is because the place that we're at right now, Standard Wormwood Distillery, which has been so gracious in having us here, makes their own Frenette.

26:59But I'm going to hold you to that. Next year, when we're at this show, or even before that, I would love to sit down with you and say, Eduardo, I'm enjoying this Fernet Branca with you, and what a genius you are for getting all this right. I would love that too. Eduardo, thank you so much for taking this time. This has been such a fantastic conversation, every second of it. I really appreciate it, and look forward to catching up again soon. Thank you, Ray. I really appreciate it to be here. I'll see you next year and in a couple of hours to have a double tasting of Fernet Branca. Less than that, my friend.

27:34Thank you. Bye.

27:39That brings us to the end of this episode of Taste Radio. Thank you so much for listening. Taste Radio is a production of BevNet.com Incorporated. Our audio engineer for Taste Radio is Joe Kratchy. Our technical director is Joshua Pratt. And our video editor is Ryan Golang. Our social marketing manager is Amanda Smirlinski. and our designer is Amanda Huang. Just a reminder, if you like what you hear on Taste Radio, please share the podcast with friends and colleagues. And of course, we would love it if you could review us on the Apple Podcasts app or your listening platform of choice. Check us out on Instagram.