Turning ‘Lemons’ into Liquid Gold: The Art of Making Refreshing Lemonade

Since its founding in 2022, Tom D’Ambrosio (left) and Kyle Hollenbeck have grown their locally owned AZ Lemonade Stand company by leaps and bounds (submitted photo).

In the midst of the pandemic, many entrepreneurs faced significant hardships, but Tom D’Ambrosio and Kyle Hollenbeck seized the moment to launch AZ Lemonade Stand. Their journey, however, began long before. “We’ve been putting lemonade in a jar for over a decade,” Hollenbeck revealed during a recent conversation. Previously, the duo had incorporated lemonade into their food truck offerings for Aioli Burger and Modern Tortilla.

The pivot to lemonade gained momentum in 2020 when they struck a deal with Fry’s (Kroger) to sell their burgers in-store. Initially optimistic, they soon realized that grocery shopping didn’t mix well with consuming burgers. Thankfully, Fry’s suggested they provide a product suitable for the cold case. “Once we saw that was the hot seller, we began crafting various lemonade flavors and decided to create a brand behind it,” D’Ambrosio explained.

Formed in 2022, AZ Lemonade Stand quickly gained traction, selling 1,698 jars in its first year, mainly through food trucks. By the end of 2023, sales soared to 489,000 jars, with projections to reach one million by the end of 2024. The company now has its products in over 1,000 retail locations across Arizona and recently partnered with Hensley Beverage Company, a collaboration set to accelerate their growth further.

Both entrepreneurs share roots in Phoenix and have known each other since middle school, where they first collaborated on small business ventures. Over the past decade, they have developed various food truck concepts, established commercial kitchen commissaries, and opened multiple restaurant locations. Their latest achievement includes becoming the official concessions partner of Phoenix Rising.

“AZ Lemonade Stand takes us back to our entrepreneurial roots,” D’Ambrosio stated. “We both had lemonade stands when we were kids. It’s a return to meeting customers and fostering community involvement.” Throughout their careers, they have learned vital lessons about resilience and adaptability.