Podcast Summary: The Journey with Morgan DeBaun

Episode Title: How Dia Simms Is Shaking Up The Spirits Industry with Pronghorn
Release Date: November 19, 2024
Guest: Dia Simms, Co-Founder of Pronghorn
Host: Morgan DeBaun | YAP Media

Introduction

In this compelling episode of The Journey podcast, Morgan DeBaun welcomes Dia Simms, the visionary Co-Founder of Pronghorn. Together, they delve into Dia’s transformative work in the spirits industry, highlighting her efforts to diversify and empower Black-owned brands within this traditionally insular sector. The conversation offers a deep dive into Dia’s career trajectory, the challenges and opportunities in the spirits industry, and the innovative strategies Pronghorn employs to foster economic equity.

Dia Simms’ Journey and Career Path

From Psychology to Defense Contract Negotiations

Dia begins by sharing her academic background in psychology from Morgan State University and how it unexpectedly paved the way for her career in defense contract negotiations.

• Quote:
  “One of the things that I love and I still reference from that was learning so much about how to approach kind of life and things like a scientist.”
  (02:06)

At 21, Dia secured a significant role in the Department of Defense, managing a $100 million contract. This experience honed her negotiation skills, a foundation she considers invaluable throughout her career.

• Quote:
  “Most people do not even get taught on purpose like most people. You can have six degrees. When I go out, like we ever trained negotiate, most people are not.”
  (04:15)

Transition to Radio Sales and Entrepreneurship

Dia recounts her shift from the Department of Defense to radio sales, a seemingly opposite field that provided rigorous entrepreneurial training.

• Quote:
  “Radio sales, you know, I often joke is like. Back then was like, it's like selling crack. But like, with none of the addiction, non-excitement like you had.”
  (05:39)

Her stint in radio sales taught her the importance of building programs from scratch and ensuring their success to earn her own salary—a pivotal entrepreneurial lesson.

Entering the Spirits Industry

Founding Madison Marketing

Leveraging her sales experience, Dia co-founded Madison Marketing in the D.C. and Maryland area, marking her first foray into the spirits industry. She collaborated with Mark Barnes, a nightlife impresario, to host events and promote spirits brands.

• Quote:
  “I negotiated for the girls to get higher rates… I want to make sure they got to look cute, they got to buy their stuff.”
  (07:19)

Dia emphasizes the significance of in-person marketing and fair compensation as foundational elements that shaped her approach, ensuring both the promoters and brands thrived.

Pronghorn: Transforming the Spirits Industry

Mission and Vision

Pronghorn was established to address the lack of diversity and representation in the spirits industry. Dia and her co-founders identified a glaring gap: Black-owned spirits brands rarely achieve significant liquidity events or long-term success.

• Quote:
  “There is a significant gap of entrepreneurs in this space and again, you don't have to make your own gin. Your marketing company could do more in the spirits industry.”
  (08:33)

Business Model and Impact

Pronghorn operates as a blend of private equity and venture capital, focusing on investing in and supercharging Black-owned spirits brands. Their comprehensive approach includes financial investment, mentorship, and strategic partnerships to navigate industry complexities such as regulatory hurdles and distribution networks.

• Quote:
  “We are looking for incredibly talented people to invest cash and information behind.”
  (45:50)

To date, Pronghorn has invested in 30 Black-owned companies with a fully funded $200 million over the first 10 years, aiming to generate $2.4 billion in economic value and create 1,800 new jobs.

• Quote:
  “Over 10 years we are driving $2.4 billion of economic value. We are fully funded for $200 million over the first 10 years. We have already invested in 30 black owned companies.”
  (18:29)

Strategic Partnerships and Industry Navigation

Dia explains the intricacies of the spirits industry, including the three-tier distribution system and stringent regulations that make it challenging for new entrants. Pronghorn’s strategy involves partnering with established distributors and leveraging existing networks to ensure the success of their portfolio brands.

• Quote:
  “The nature of this industry is expensive because it's not as easy as I make a dope T-shirt and sell a direct to consumer on a dot com.”
  (11:35)

Challenges and Solutions in Securing Liquor Sponsors

Regulatory Hurdles

Dia discusses the complexities of securing liquor sponsors for events, highlighting the rigorous regulations that govern the distribution and sponsorship of alcohol.

• Quote:
  “If you want to change something for real, right? So in order to make a change, it cannot be given to a lady named Nancy to handle after her real HR job on Tuesday nights.”
  (16:32)

Pronghorn’s Role in Facilitating Partnerships

Pronghorn acts as a bridge between Black entrepreneurs and major suppliers, distributors, and retailers in the spirits industry. By providing comprehensive support beyond just financial investment, Pronghorn ensures sustainable growth and successful exits for their brands.

• Quote:
  “We are the partner to think through how you participate and generate wealth for you and your family and your neighborhood.”
  (17:09)

Advocacy for Economic Equity and Diversity

Building a Template for Change

Pronghorn aims to create a scalable model that can be replicated in other industries to foster diversity and economic equity. Dia emphasizes the urgency of addressing systemic inequities and the pivotal role of investment in driving meaningful change.

• Quote:
  “We have to catch up for centuries of inequities. We got a heck of a lot of ground to cover. We're impatient for change. And it's kind of an emergency.”
  (27:16)

Advice for Aspiring Entrepreneurs and Investors

Dia advises listeners to redefine risk by considering the long-term benefits of ownership and investment in diverse businesses. She underscores the importance of collective action and intentional spending to support Black-owned enterprises.

• Quote:
  “You have to own something… because the way we pour into these jobs that, you know, you are important, but there is no long term roi.”
  (44:52)

Closing Remarks and Call to Action

Morgan and Dia conclude the episode by encouraging listeners to actively support Black-owned businesses and consider investment opportunities with Pronghorn. Dia extends an open invitation for entrepreneurs to reach out to Pronghorn for support, emphasizing the organization’s commitment to fostering success through holistic investment strategies.

• Quote:
  “If you are sitting around like, I've been thinking about this, I want to make these glasses… please, seriously, call us.”
  (45:50)

Morgan wraps up by urging listeners to subscribe to the podcast and engage with the community to amplify the message of economic empowerment and diversity.

Key Takeaways

• Holistic Investment: Pronghorn’s model combines financial investment with mentorship and strategic partnerships to ensure the success of Black-owned spirits brands.

• Economic Equity: Addressing systemic inequities requires intentional investment and collective action to create sustainable economic opportunities.

• Industry Navigation: Understanding the complexities of regulated industries like spirits is crucial for successful entrepreneurship and investment.

• Call to Action: Listeners are encouraged to support Black-owned businesses, rethink their spending habits, and consider investment opportunities that promote diversity and economic empowerment.

Notable Quotes with Timestamps:

• “One of the things that I love and I still reference from that was learning so much about how to approach kind of life and things like a scientist.” – Dia Simms (02:06)
• “Radio sales, you know, I often joke is like. Back then was like, it's like selling crack. But like, with none of the addiction, non-excitement like you had.” – Dia Simms (05:39)
• “We are looking for incredibly talented people to invest cash and information behind.” – Dia Simms (45:50)
• “If you are sitting around like, I've been thinking about this, I want to make these glasses… please, seriously, call us.” – Dia Simms (45:50)

This episode serves as an inspiring testament to the power of strategic investment and community-driven entrepreneurship in transforming industries and fostering economic equity. Dia Simms’ journey with Pronghorn exemplifies how dedication, innovation, and collaboration can create lasting impact and open doors for underrepresented entrepreneurs.