The entrepreneurial story of AZ Lemonade Stand has made a significant splash across the Valley, with the locally-made brand experiencing rapid growth and market expansion. Founded in 2020, the company has impressively grown from nostalgic mason jar beginnings at Aioli Gourmet Burgers to surpassing 1000 retail locations, including more than 60 Fry's grocery stores throughout Arizona by September 2024, according to an ABC 15 report. Sales figures bolster their success narrative: after generating $1.35 million last year, projections for 2024 soar to $2.75 million.
The team behind the beverage, chef Tom D'Ambrosio and Kyle Hollenbeck, both Arizona natives, met during their time at Shea Middle School in Phoenix and later partnered to create Aioli Gourmet Burgers. As they began serving homemade lemonade, the state's official drink, a new opportunity began to crystalize. Their venture took a turn when an Aioli outlet inside a Fry’s grocery struggled to sell its primary product—burgers. "We thought, ‘Oh, we've made it! We're partnered with Fry’s’ … fun fact, nobody wants to eat a hamburger, a gourmet one, at that, while trying to shop in a grocery store," Hollenbeck shared, as detailed by The Business Journals. Their adaptation led to the lemonade's burgeoning success.
When Fry's presented the challenge to supply a product for their cold case, the duo decided to bottle the lemonade, which had been a hit at their burger joint. The drink's popularity took off, culminating in the sale of 489,000 jars by the end of 2023. Not only did this pivot optimize their business operations, but it also demonstrated an acute awareness of the market's demand. D'Ambrosio's culinary skills, honed at the Culinary Institute of America and polished through victories on Food Network's "Chopped", ensured the product's quality and appeal.
The founders are not resting on their laurels, with goals to break into new markets beyond Arizona, working with distributors like Cisco, Hensley, and Shamrock. Eager to distinguish their brand from the competition, D'Ambrosio emphasizes their commitment to small-batch production and unique flavors. “We focus on bringing some of Arizona's finest flavors to the lemonade,” D'Ambrosio said. With a range that includes Prickly Pear and other specialty flavors like Huckleberry and Rising Raspberry, these entrepreneurs have moved beyond the traditional lemonade stand.
Using a brewing process likened to beer production, AZ Lemonade Stand leverages local agriculture by using lemons from Arizona and Florida and manufactures the product at BLT Kitchens in the Dunlap area of Sunnyslope. Interest in their output was underscored by Hollenbeck’s own research, based on a Phoenix Business Journal’s list, suggesting that the company is on track to produce an impressive 5,000 barrels by year's end. “I had my calculator out, and I spent an hour and a half, and I kept checking the math, and I'm emailing Tommy .. I go, ‘Guys, if we would have submitted for this, we're a top 10 brewery in Arizona'," Hollenbeck explained.
