Swig (soft drink shop)

Last updated

Swig
Founded2010;15 years ago (2010)
St. George, Utah
FounderNicole Tanner
Headquarters
Lehi, Utah
Number of locations
101 (Jan 2025)
Area served
 United States of America
Key people
Alex Dunn (CEO), Chase Wardrop (COO), Dylan Roeder (CMO)
Products soft drinks, cookies, pretzel bites
Number of employees
500+ (2020)
Parent Larry H. Miller Company
Website www.swigdrinks.com

Swig is a drive-through soda-fountain chain primarily located in the western United States. The chain, known for its popular "dirty sodas," was founded in April 2010 by Nicole Tanner in St. George, Utah. Since then, Swig has experienced steady growth and, as of January 2025, operates locations in fourteen states. Swig's majority owner is Larry H. Miller Company (LHM), with the Savory Fund having a minority interest. [1] [2] [3]

Contents

History

Inspired by childhood memories of grabbing cold Cokes from her grandparents’ fridge, Nicole Tanner founded Swig in 2010 as a drive-thru specialty soda chain. Her first location, a small 700-square-foot space across from Utah Tech University, initially charged just $1 to entice customers to try the unique twist on soda. [1]

Swig quickly caught on with the local community and became a go-to spot, serving as a tempting substitute for potential vices. As other soda shops began popping up around Utah with similar offerings, Swig trademarked the term “dirty soda” in 2013, solidifying its status as the pioneer of the burgeoning specialty beverage segment. [1]

A turning point came four years later when Savory Fund took a majority stake in the business. The partnership fueled a period of disciplined growth, with Swig expanding its footprint to 40 locations within five years. [1]

Savory Fund remains an equity and operational partner, but in 2022, LHM became the majority owner after a significant investment. Alex Dunn, who is a managing partner at LHM, became the CEO in 2024. [1]

In 2015, Swig sued competitor Sodalicious over their use of the term "dirty soda", which Swig stated it had trademarked in 2013. [4] [5] Sodalicious argued that the term was generic and thus could not be trademarked. [4] The lawsuit ended with an undisclosed settlement in 2017. [5]

By 2017, Swig had 16 locations and more franchise offers from outside of Utah. [6] The same year, Nicole Tanner sold the chain to the restaurant management firm Four Foods Group. [6]

As of 2018, the company headquarters is located in Lehi, Utah. [7]

In 2021, Swig expanded into Idaho, Oklahoma, and Texas. [6] [3]

On November 22, 2022, LHM purchased a majority stake in Swig. Savory Fund, Nicole Tanner, Chase Wardrop, Dylan Roeder each retained significant minority equity in the chain. [8] In 2023, Swig announced that it would open 25 corporate-owned locations and start a franchising program. [9] Megaplex Theatres, will start selling Swig products in 2023. [8] Swig had plans to open locations in Florida, North Carolina, South Carolina, Tennessee, Arkansas, Missouri and Idaho. Roughly 250 new locations are planned. [10] [11]

In late 2023, Swig announced that it was expanding into San Antonio, Texas with two locations. [12] In early 2024, Swig announced the opening of a third San Antonio location in the Alamo City neighborhood. [13]

In 2023, Arkansas opened its first franchise location in Rogers. [14] Swig opened a location in Alcoa, Tennessee on June 21, 2024. [15]

In 2024, Swig featured prominently in the television show The Secret Lives of Mormon Wives. The chain was initially surprised by the attention from the show but quickly pivoted to leverage it for marketing purposes. Swig's TikTok account features numerous videos of the same drinks ordered by cast members being prepared. [16]

In late 2024, Swig opened its first location in Kansas City, Missouri. [17]

As of June 2024, Swig had 81 open locations in seven states. [18] By January 2025, the number of Swig locations had grown to 101. [19]

Products

A variety of "Dirty Sodas" available at Swig Dirty Soda.jpg
A variety of "Dirty Sodas" available at Swig

Swig is known for their "dirty" sodas, which are made by mixing base name-brand sodas such as Coca-Cola or Dr Pepper with add-ins such as flavored syrups, creams, and fruit-purees. [20] Swig also sells non-soda beverages and energy drinks fortified with extra caffeine. The chain has a limited food menu that includes sugar cookies with pink frosting, salted pretzel bites, and limited time offer treats. [4] [15] [21]

As of 2024, "Dirty soda" chains were growing across the United States. This carbonated drink has already gained a strong following in the mountain states, partly due to the fact that many members of the Church of Jesus Christ of Latter-day Saints abstain from alcohol and coffee. This makes these sodas an appealing choice. A soda becomes "dirty" when it's mixed with flavored syrup and cream. [22]

Franchises

As of 2024, opening a Swig shop demands an initial investment between $504,900 and $1.1 million, as detailed in its franchise disclosure document. In 2023, company-owned store revenues ranged from $574,553 to $1.65 million. In 2023, Swig launched 14 new stores, including two franchised locations. [22]

As of 2024, Swig had contracts to open about 500 stores. Swig says it can complete this buildout within five to seven years; The company anticipates new locations in Idaho, Texas, the Midwest, the Carolinas, and Florida. [22]

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References

  1. 1 2 3 4 5 Klein, Danny (January 6, 2025). "QSR's Breakout Brand of 2024: Swig Pioneers a Beverage Revolution". QSR Magazine. Retrieved January 6, 2025.
  2. ↑ "Swig". swigdrinks.com. Retrieved September 8, 2022.
  3. 1 2 Petersen, Victoria (December 6, 2021). "In the Mountain West, the 'Dirty' Soda Rush Is On". The New York Times. ISSN   0362-4331 . Retrieved September 9, 2022.
  4. 1 2 3 Turkewitz, Julie (November 30, 2015). "In Utah Feud Over 'Dirty' Sodas, Flavored Darts Are Fired". The New York Times. ISSN   0362-4331 . Retrieved September 8, 2022.
  5. 1 2 "Utah's 'dirty soda' war ends in a settlement". KSTU. November 8, 2017. Retrieved September 8, 2022.
  6. 1 2 3 "Swig Shoots for Soda Supremacy". Silicon Slopes Newsroom. February 4, 2021. Retrieved September 8, 2022.
  7. ↑ "New Look for Beloved Utah Custom Soda Chain". www.businesswire.com (Press release). October 25, 2018. Retrieved September 8, 2022.
  8. 1 2 Williams, Carter (November 22, 2022). "Larry H. Miller Company acquires majority stake of Utah 'dirty soda' chain". KSL.COM. Retrieved December 14, 2022.
  9. ↑ Coley, Ben (November 22, 2022). "Rising Beverage Chain Swig Sold to the Larry H. Miller Companies". QSR. Retrieved February 10, 2023.
  10. ↑ Garcia, Juliana (June 26, 2023). "Swig, a 'dirty' soda company, wants to open a Mission shop". Shawnee Mission Post. Retrieved June 29, 2023.
  11. ↑ Stefanich, Logan (September 2, 2023). "Utah-based Swig is bringing its 'dirty' sodas to 250 more stores in 7 new states". KSL. Retrieved November 2, 2023.
  12. ↑ Rocha, Polly Anna (December 27, 2023). "Dirty soda franchise plans second location before first one even opens". MYSA. Retrieved January 8, 2024.
  13. ↑ Stinson, Katherine (February 20, 2024). "Swig Soda is adding a third location in San Antonio. Here's where". My San Antonio. Retrieved March 1, 2024.
  14. ↑ Staff (November 3, 2023). "Swig Opens First Franchised Store in Arkansas". QSR. Retrieved June 3, 2024.
  15. 1 2 Thompson, Myron (July 3, 2024). "Swig brings its 'dirty sodas' to Tennessee for the first time. Here's where it is open". Knoxville News Sentinel. Retrieved July 3, 2024.
  16. ↑ Walker, Julie (October 4, 2024). "'The Secret Lives of Mormon Wives' gives dirty soda shop Swig unexpected publicity". PR Week. Retrieved October 7, 2024.
  17. ↑ Thompson, Jenna (October 23, 2024). "Viral 'dirty' soda chain opens first Kansas City area spot, attracting long lines". Kansas City Star. Retrieved November 7, 2024.
  18. ↑ Chandra, Fiona. "Everything You Should Know About Dirty Soda Chain Swig". Chow Hound. Retrieved December 6, 2024.
  19. ↑ Farrar, Thomas (January 29, 2025). "Dirty soda chain Swig to open new location in Conway". ABC7. Retrieved February 4, 2025.
  20. ↑ "Why Swig is One to Watch". QSR magazine. September 21, 2020. Retrieved September 8, 2022.
  21. ↑ Parker, Lara. "People Across Utah Are Obsessed With "Dirty" Sodas. Here's Everything You Need To Know". Yahoo!. Retrieved November 7, 2024.
  22. 1 2 3 Wentland, Emillee (July 10, 2024). "Swig Makes a Splash in Dirty Soda Space". Franchise Times. Retrieved July 27, 2024.
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