Candace Nelson on Scaling Brands, Letting Go, and Mod-Tails

Candace Nelson knows how to build beloved brands. From co-founding Sprinkles to investing in fast-growing startups through her venture firm, CN2, Nelson has built a career on tapping into cultural moments and scaling them with intention.

No matter what exciting project she’s involved with, Nelson is guided by the same north star: delighting people through thoughtful, elevated experiences. In our conversation, she opens up about why she walked away from Sprinkles, what separates lasting brands from passing trends, and how she’s thinking about the future of social drinking—one mod-tail at a time.

Dry Atlas: You built Sprinkles into an iconic brand and then exited. Looking back, how did you know it was the right time to sell? What would you tell beverage founders debating whether to keep growing or cash out?

Candace Nelson: Selling Sprinkles was a deeply personal decision. We had built a brand that sparked joy and connection, something far more than just a cupcake company. My passion lies in innovation and bringing new ideas to life. But once we hit 10 locations, my role became increasingly operational, focused on scaling rather than creating. When I saw that the business could grow and thrive under new leadership, I knew it was time to pass the baton.

To beverage founders, I’d say: know your “why.” Are you still energized by the day-to-day, or are you feeling called to your next chapter? There’s no one-size-fits-all answer, but clarity on your motivation is everything.

DA: What are early signs that a brand is ready to scale in food and beverage, and where do you see founders jump the gun?

CN: You’re ready to scale when demand starts to consistently outpace supply. But that’s not the only green light. Look for strong repeat purchase rates, high customer satisfaction, and a brand that can’t be easily copied. That’s your moat.

Where I see founders jump the gun is expanding too quickly—too many SKUs, too many markets, too many channels—before the foundation is truly solid. Nail your core offering and customer experience first. Then, scale with intention.

DA: You’ve invested in the beverage brand Equitea through CN2. What specific consumer behaviors captured your attention here?

CN: Equitea speaks directly to the growing consumer desire for intentional, wellness-forward sipping. People don’t just want clean labels anymore, they want beverages that align with their values and daily routines.

Today’s consumers are asking, “How does this make my life better?” Equitea delivers on that, combining functionality with flavor and cultural relevance. It’s more than a drink; it’s a lifestyle choice.

DA: Beverage is notoriously competitive. What signals tell you a brand has real staying power?

CN: Three things:

1. Emotional resonance: People buy the story, not just the product. Does the brand tell a story people want to be part of?
2. Product integrity: Does it taste as good as it looks? Is it a one-time curiosity, or does it earn a place in someone’s daily ritual?
3. Velocity and versatility: Is it moving across different retail channels—and is there room to grow?

If you’ve got all three, you’re not just riding a trend. You’re building a brand.

DA: In addition to CN2, you’re currently scaling a pizza restaurant concept, Pizzana. You introduced a mocktail menu—what prompted that decision? Was it customer-driven or a proactive brand move?

CN: It was both. We’ve always paid close attention to evolving dining habits, and it’s clear that guests want a full, elevated experience, whether or not they’re drinking alcohol. That includes a drinks menu as curated and thoughtful as our food menu.

So, we partnered with a mixologist to craft a delicious and sophisticated alcohol-free menu. Too often, mocktails just mean fruit juice with sparkling water. But people still crave flavor complexity, even without the alcohol. We wanted our guests to feel just as celebrated and included, no matter what’s in their glass.

Our mocktail menu includes:

• Scala Sunset: Bittersweet orange, lemon, blood orange, jasmine
• Amalfi Glow: Cherry, lime, vanilla, sparkling water
• Vesuvian Blush: Ginger, tea, lemon, mint

And in four of our restaurants, we only have a beer and wine license. Because of this, we’ve leaned into low-ABV spirits and created a lineup of “mod-tails” that bring all the flavor and fun, just in a more mindful format.

DA: What do you think the future of social drinking will look like, whether on-premise or at home?

CN: We’re entering the era of mindful sipping. It’s no longer a binary of “I drink” or “I don’t.” People are becoming more fluid and intentional, choosing what fits their mood, setting, or goals.

They still want a special moment in a glass, but they don’t always need the buzz to go with it. The future is flavor-forward, inclusive, and flexible.

This interview has been edited for length and clarity.