Houston coffee startup pivots to hand sanitizing product amid pandemic

Constantine Zotos (left) and Mitchell Webber pivoted their coffee business toward hand sanitizer manufacturing amid the pandemic. Today, the company has around 60 employees and produces 15,000 gallons of hand sanitizer per day. Photo courtesy of Modern Chemical

Houstonians' workday routines look much different today than they did seven months ago. With a large percentage of people working from home, office rituals have come to a halt and few habits have been immune to change — including our coffee consumption.

In early March, Constantine Zotos and Mitchell Webber already knew this didn't mean good things for their local nitro coffee company, Recharge Brewing Co. Though the brand had grown steadily over the better course of two years, the duo had focused their business on installing and supplying their nitro coffee taps to two of the most taboo markets at the time: office spaces and restaurants.The duo aptly predicted that the demand for their product would soon dry up and quickly shifted their operations to focus on a product that was considered a necessity: hand sanitizer.

To get started, the young entrepreneurs and their small team of six began cold calling down a list of Purell distributors they found online. They soon found that many businesses could hardly keep the product in stock.

"They asked us if they could fly a jet down to pick up the hand sanitizer themselves," Zottos says of one distributor. "I told them not to get ahead of themselves, but it just speaks to the sense of urgency everyone had."

The team studied up on the basic ingredients of hand sanitizer to make the liquid, alcohol-based form that infiltrated the market in the first few weeks of the pandemic. At the time there was such a rush for the product, and such a low supply of the material needed to make it, that the team resorted to selling the product without traditional pump tops or plastic caps. Instead they used the slow release plastic pourers that are often used on liquor bottles.

Still, they were focused on doing it right. In addition to the long hours spend to get the product out the door, Zotos and Webber took special care to ensure that their sanitizer met all FDA and EPA requirements by working with consultants and lawyers, as well as reading up on all the pertinent documents and literature between sleeping shifts and time on the shop floor.

"We took the stance that we would rather rush toward compliance rather than run from it," Zotos says.

It didn't seem to slow down the demand. One week in they formed Modern Chemical, and by the middle of the month the company was fulfilling substantial orders with a team of 40 employees. By the summer, Modern Chemical released a gel-based, FDA-registered sanitizer that got them in with giant B2B clients, such as the Massachusetts Bay Transit Authority, Jefferson Parish School District, and recently the City of Austin.

The pair agrees that their background with Recharge gave them a leg up in the beginning.

"Knowing the pumps and hoses and all the stuff you really need to run a bottle facility and a hand sanitizer facility, we already had," Webber says. "On top of that when all this started, there were some long days and long nights, but being in the nitro coffee business, we were used to long hours. It prepared us for this huge push for the drastic demand that needed to be filled."

Location and timing also played a huge role in their success, Zotos adds. "When the pandemic struck we were able to bring on a lot of people who are extraordinarily talented throughout the company. If we weren't hiring in the pandemic environment like this I think we would be hard pressed to find people as talented as we did as quickly as we did," he says. "And Houston really played a big part in that."

Today, the company of about 60 employees is producing about 15,000 gallons of hand sanitizer per day and is in the process of launching disinfectant wipes and spray. They recently moved all of the Modern Chemical operations into a new and improved facility off Air Tec and Interstate 45 that will allow for more efficient packaging and loading of products and — in another pivot — are even offering custom labeling, scenting and color dyes, plus specialty dispensing stands for their product.

"Neither of us have a chemical background and we are not ignorant to that. But we know how the equipment works from an operational side of things and if we can make the packaging look the best. If we can package the most for the best price then people are going to want to buy it," Zotos says. "Instead of taking the let's do everything route, we found our niche in the chemical supply chain, which is packaging."

And as Modern Chemical continues to settle into its new space and eventually a post-pandemic market, Zotos and Webber plan to revisit and revamp Recharge Brewing with the lessons they've learned. The duo plans to use their original facilities to help other small business owners launch and produce beverage brands of their own by early 2021.

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From enlightening talks to networking opportunities, here's where you need to be in October. Photo via Getty Images

From networking meetups to pitch competitions, October is lined with opportunities for Houston innovators.

Here's a roundup of events you won't want to miss out on so mark your calendars and register accordingly.

Note: This post might be updated to add more events.

Additionally, mark your calendars for November 8 for the annual Houston Innovation Awards.

October 6 — Texas Venture Crawl

Head over to the Ion for pre-panel networking, an engaging Ask-Me-Anything (AMA) investor panel, followed by a happy hour for networking. Panelists include Grace Chan, Principal at bp Ventures; Jason Ethier, Founder of Lambda Catalyzer; Alex Gras, Associate at Mercury Fund; and Billy Grandy, Chief Innovation Officer and Managing Partner at Softeq Venture Fund.

This event is Friday, October 6, from 5 to 8 pm at the Ion. Click here to register.

October 7 — Ideation Competition

The Pearland Innovation Hub is hosting it's first Ideation Competition. Participants will get an opportunity to have mentors guide them through Design Thinking and other methodologies to help generate ideas to solve local civic issues.

This event is Saturday, October 7, from 9:30 am to 3 pm at Pearland Innovation Hub. Click here to register.

October 11 — Emerging Tech: Revolutionizing the Industry Panel

From artificial intelligence and blockchain to virtual reality, this panel will explore the impact of these innovations on businesses and society. Whether you are a tech enthusiast, a professional in the industry, or simply curious about the future of technology, this event will have valuable networking opportunities.

This event is Wednesday, October 11, from 1 to 2 pm at HCC West Loop Campus. Click here to register.

October 13 — Web3, Blockchain, & Crypto...Oh My!

Expert speakers will unravel the mysteries of Web3, showcasing its potential to revolutionize industries like finance, gaming, and more. Learn about the power of Blockchain technology and how it ensures transparency, security, and trust in various sectors. Explore the endless possibilities of Cryptocurrencies and their impact on the global economy.

This event is Friday, October 13, at the Cannon. Click here to register.

October 16 — Health & MedTech Mingle

Pumps & Pipes is hosting a night of industry mingles occurring simultaneously at the Ion featuring FinTech, EdTech, Food Tech, and more. This month's featured speaker is Dr. Alan Lumsden, Chair of Cardiovascular Surgery and Chair of the DeBakey Heart & Vascular Center at Houston Methodist.

This event is Monday, October 16, at the Ion. Click here to register.

October 19 — UH Energy Symposium Series - The Future of Mobility Promises & Bottlenecks

The latest installment of UH Energy's Critical Issues in Energy Symposium Series tackles the obstacles facing a transition to a circular economy.

Panelists to include: Dave Mullaney – Principal, Rocky Mountain Institute; Varuna Singh – Deputy District Engineer TxDOT; Erika Myers – Executive Director, CharIN, e.V.; Matt Peterson – President and CEO, Los Angeles Cleantech Incubator; Catherine McCreight – Director of Transportation Planning, TxDOT; Funda Sahin – Associate Professor of Supply Chain Management, University of Houston (Moderator).

This event is Thursday, October 19, at the University of Houston. Click here to register.

October 25 — Houston Startup Ecosystem Summit

The Houston Startup Ecosystem Summit is an opportunity for innovators, entrepreneurs, and tech enthusiasts to come together and push the boundaries of what's possible. This event features a lineup of panelists, diverse breakout session tracks, and a competitive startup pitch showcase.

This event is Wednesday, October 25, at the Cannon. Click here to register.

October 25  — TMC Startup Symposium

The Symposium will include 1:1 time with subject matter experts, industry networking events, educational presentations, and thought leader panel discussions. The following topics will be covered: intellectual property, voice of customer, regulatory reimbursement, clinical commercialization strategy, angel investing, venture capital investing, and serial entrepreneurship. Startup registration is $250 for a ticket.

This event starts Wednesday, October 25, from 8 am to 5 pm at TMCi. Click here to register.

October 26 — Unleash the Power of AI and ChatGPT

Attendees will have the opportunity to interact with a panel of industry experts, and network with like-minded individuals. Whether you're a seasoned professional or just starting your AI journey, this event is designed to inspire and educate. Discover how AI is revolutionizing various industries and learn how to leverage its power to drive innovation in your own projects.

This event is Thursday, October 26, from 6 to 8:30 pm at the Cannon. Click here to register.

October 27 — SHINE: The Conference on Culture

Shine is a half day conference focused on the organizational structures of workplaces. Attendees can expect to hear from a range of speakers who will share their wisdom gained from industries, from breweries to public relations.

This event is Friday, October 27, from 8 am to 1 pm at Stages. Click here to register.

October 30-31 — Fuze

This energy conference is a must-attend event for executives, investors, and founders serious about solving the energy crisis and boosting company efficiency. Featuring keynotes, expert panels, tech showcases, and networking, Fuze has a variety of activities planned for energy industry professionals. Price of admission ranges from $299-$799.

This event starts on Monday, October 30, from 8 am to 7 pm at 713 Music Hall. Click here to register.

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