Behind Happy Dad’s meteoric rise in Ontario RTDs
Happy Dad may be relatively new to Canada but the hard seltzer brand has convenience in its DNA.
Launched in the U.S. in 2021 by entrepreneurs, brothers Sam and John Shahidi, along with the NELK Boys—Canadian-American creators known for viral pranks—Happy Dad skipped the skinny cans, kept carbonation light, and delivered crushable flavours with just one gram of sugar and no artificial sweeteners.
It first built a following in suburban and small-town convenience stores before breaking into bigger markets, fueled by the endorsement of rappers like Snoop Dogg and Post Malone, as well as UFC fighters Sean O’Malley, Colby Covington and Justin Gaethje.
That momentum has carried north. The Canadian rollout began in 2024—first in Atlantic Canada followed by Alberta, and then Ontario via the LCBO and c-stores, with the opening of the beverage alcohol market that September.
With Fruit Punch, Death Row Grape (a collab with Snoop Dogg’s Death Row Records label) and 12-pack variety pack, Happy Dad has quickly landed in the province’s top three RTD sellers. One c-store owner in Ontario says it has been an unexpected standout performer, stocking Happy Dad after a customer requested it.
But Happy Dad’s Canadian entry isn’t just a cut-and-paste play.
Instead of importing the U.S. malt-based formula, the team developed a vodka-based lineup produced in London, Ontario, tailored for local tastes.
“Canadians, by a landslide, prefer their RTDs made with vodka or neutral grain spirit when it comes to seltzers. Malt doesn’t have the same appeal to the average Canadian consumer in terms of taste profile,” says Steve MacLellan, national channel manager, Happy Dad Canada. “There’s also more opportunity for distribution and listings with vodka across Canada. Most of the provincial boards prefer vodka or spirit-based RTDs versus malt.”
“For instance, in Ontario, if you’re malt, you sell only out of The Beer Store,” he points out.
A 20-year beverage-alcohol veteran with experience at Southern Glazer’s Wine and Spirits and Corby Spirit and Wine, MacLellan only joined Happy Dad this summer. “They handed me a hat and said, ‘Go,’” says MacLellan, who is based in Grimsby.
Here, he talks about the challenges of launching into Ontario convenience, its push to back retailers with improved promotions and delivery, and a new product launch.
You came in just two months before the province’s convenience channel opened. Talk about being thrown into the deep end!
When I joined Happy Dad in July 2024, it was full throttle. Thankfully, I had great support from the team.
But here’s what made the timing really challenging: the LCBO had sent its recommended product mix guide to c-store chains and independents—based on sales data from March 1, 2023 to March 1, 2024—and we weren’t on it. Happy Dad didn’t launch at the LCBO until that March, and so we couldn’t be. We only had a month or two of sales data to show rather than a year like other brands. So on paper, we didn’t exist.
Still, when we started reaching out to retailers, about half said they already knew about the brand and our Fruit Punch flavour. That gave us a jump start.
What they didn’t know was that by July, we had already surged to become the number one RTD beverage in the 473 mL can at the LCBO. That’s the message we had to get out. Leaning on my background in grocery wine sales, we hit the ground running with marketing materials, driving retailers to our digital and social channels, and spotlighting our early momentum.
Tell us about the first year. How have sales performed in the channel?
Honestly? It’s been incredible. Back in 2023 and early 2024, I was with Southern Glazer and watched Labatt launch Cutwater canned cocktails. I remember thinking, “No one’s ever going to beat this!” Fast-forward a year, and I’m watching Happy Dad break those numbers. To put it in perspective: our Fruit Punch flavour has already sold as many cans in the convenience channel as it has in the LCBO—and that’s just fiscal year to date.
How big is the Happy Dad team in Canada now?
We are currently at our largest size ever— 30 people nationwide. In Ontario, 14 on the sales and marketing support team. If you include our agent network of third-party sales reps, we’re closer to 25 people focused on the province.
Did you have a sense of how well the brand would perform in c-stores?
I did—for two reasons. First, the U.S. team shared strong data from large convenience chains. Happy Dad’s roots are in rural and suburban markets, not major city centres. Our core drinkers —19- to 27-year-olds—prefer to purchase at convenience stores. Nielsen data confirmed it. I thought Top 10 in RTDs would be great in our first year in Ontario, but we landed in the top three almost immediately.
Second, RTDs have been booming. Better for you, low-sugar options are in demand. I saw it firsthand before Happy Dad even came to Canada: at a beach near Sarnia with my kids where my parents live nearby, I saw a group of 20-somethings enjoying seltzers and vodka waters out of a 5L container. And I said to one of the guys, “I’m surprised you’re not drinking beer. When I was your age and down at the beach, that’s all we drank.” He said, “Yeah, but I have to be photographable for Instagram.” That says it all—they want crushable drinks, not beer bellies.
Retailers have expressed frustration with LCBO ordering. Thoughts?
I hear it from both sides. The LCBO is working hard to improve the process and has been receptive to feedback. Retailers have been patient, but understandably, patience is wearing thin. One key challenge is the time it takes to get new SKUs listed, especially limited-run flavours or seasonal promotions. Switching formats or packaging takes coordination. Going into year two, we need more flexibility—ideally, brands could help fulfill orders more directly or speed up system updates.
How receptive are retailers to in-store promotions and activations?
It’s chain-specific. Independents have been very open to programming and activations, while chains must be cautious about being perceived as influencing purchase as they’re being watched more closely by the Alcohol and Gaming Commission of Ontario. We’ve done activations—some have been great, some not so great. Overall, everyone is trying to iron out the kinks, but retailers are receptive.
What’s on the horizon for the brand?
Happy Mom, which is already in several provinces, is launching in Ontario in 2026. It’s raspberry flavoured. I might be biased, but it’s my favourite one we’ve made. We will also be collaborating with RealTree Camo Gear to launch our first hard lemonade.
