Successful Rule Breakers: Karan Khanna Of El Cristiano Tequila On How To Succeed By Doing Things Differently
An Interview With Chad Silverstein
Passion: My deep-rooted passion for wine and spirits has been crucial. This passion allows me to speak authentically and knowledgeably about El Cristiano Tequila, whether discussing brand strategy, flavor profiles, or the intricacies of tequila production. My extensive background in the industry has been invaluable; it’s not just about knowledge but also about the genuine enthusiasm that translates into every aspect of the business. For instance, my background helped us design a tequila that truly stands out, leveraging insights I’ve gathered over years of personal exploration and professional experience.
In the world of business and within every industry, there are forward-thinking leaders who go against the status quo and find success. Their courage to take risks, embrace innovation, and inspire collaboration separates them from the competition. Until 2002, Apple’s famous slogan was “Think Different”. This attitude likely helped them become one of the most successful organizations in history. This interview series aims to showcase visionary leaders and their “status quo-breaking” approach to doing business. As part of this series, I had the pleasure of interviewing Karan Khanna.
Karan Khanna is a serial entrepreneur with a history of multiple large exits. Karan is the founder of El Cristiano Tequila which he founded in September 2020 and has shown record breaking growth for a new tequila, winning an impressive number of awards, and beating sales benchmarks nationwide. At El Cristiano he states “Passion, Purity and Promise” with a focus on sustainability and community, supporting orphanages in Arandas which is a town in the Highlands of Jalisco, Mexico where this beautiful tequila comes from; through an established fundacion as well as offering the most premium, additive free, delicious tequila. Khanna is also the founder of Artha Wellness Sanctuary, a coveted membership wellness spa and services entity in Los Angeles. Prior to that, Karan served as the President of MergerTech Advisors, an investment bank focused on technology entrepreneurs, starting from October 2009. From 1997 to 2008, he held the position of President & COO at Saber Corporation. Karan Khanna began his career as a Founder of Saber Corporation in 1997 at the age of 21.
Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you tell us your “Origin Story”? Can you tell us the story of how you grew up?
Certainly! My name is Karan Khanna, and I was born and raised in India. I grew up with my brother in a military family, with our father serving as a Colonel in the Indian Army. This meant we moved around quite a bit until we eventually settled in Ambala Cantt, a small town in North India, with our grandfather. When I was 21, my family and I moved to Chicago to join my brother, who was already in the U.S. for college. Together, we started Saber Consulting, a software consulting firm, quite literally in our basement. Over the next decade, from 1997 to 2007, we grew Saber into the nation’s largest provider of state government software. Notably, from 2002 to 2006, we developed the Elections Management and Centralized Voter Registration system for Oregon, which was later implemented in 25 other states, becoming the largest such system in the country. By the time we sold the company to Electronic Data Systems (now Hewlett Packard), we had expanded to 1,400 employees across 40 states and two countries. After the sale, at the age of 31, I moved with my wife Priyanka and our newborn son Kismet to Newport Beach, where we embraced a new chapter in life.
Can you give us a glimpse into your journey into this industry and share a story about one of the most significant challenges you faced when you first started out? How did you end up resolving that challenge?
My journey into the alcohol industry began when I was 21, alongside my brother and business partner of 26 years. Our passion for this field ignited in 1997 during a visit to Napa Valley. We were captivated by the romance of wine growing and the art of pairing culinary delights with fine wine. This sparked a deep love for wine and food, leading me to explore almost every major wine-growing region and connect with renowned winemakers over the years. I’m honored to call many of these winemakers friends, with whom I’ve shared countless fine wine dinners across the globe. My passion later extended to whiskey, taking me to Scotland, Ireland, and Japan, where I followed my taste buds to discover exceptional spirits and the culinary traditions that complement them. Meanwhile, I was also falling in love with Mexico — its people, culture, food, hospitality, and eventually, the rich heritage of tequila. After 45 visits to Mexico, including a recent trip with 100 friends, family, and associates to the Highlands of Jalisco where our tequila is crafted, I can say that my connection to tequila has only deepened. Around 10 years ago, while on a family trip to the St. Regis in Punta Mita, my brother and I decided to venture into the tequila business. After attempting to acquire a few existing brands, we chose to create our own. The challenges in this industry are endless, and there’s a well-known saying: “How do you make a small fortune in alcohol? Start with a big one!” What this doesn’t convey is just how tough this industry is. It’s highly regulated, bound by antiquated rules, and varies significantly across states. Each state is like a separate country when it comes to sales and distribution. Marketing and sales strategies that work in one state might be completely ineffective in another. But we learn and adapt every day, which, while challenging, is also incredibly rewarding.
Who has been the most significant influence in your business journey, and what is the most significant lesson or insight you have learned from them?
My brother, Nitin, has been the most significant influence in my business journey. Nearly everything I know about being a successful entrepreneur and businessman, I learned from him. The reason I emphasize both the art and science of business is that while business schools focus on the science — management principles, financial strategies, and operational processes — there’s an equally crucial art to creating, sustaining, and growing an enterprise-level company. My strongest skill is in building large, self-sustaining organizations valued at over $100 million. The processes, management practices, hiring, training, and organizational development necessary for such growth is critical. These are the elements that turn a business into a thriving corporation, and it’s something I’ve mastered through years of experience and insight, largely influenced by my brother.
Can you share a story about something specific that happened early on that you would consider a failure but ended up being a blessing in disguise or ended up being one of the most valuable lessons you had to learn on your own?
My first job was at McDonald’s in Chicago, earning minimum wage of $4.65 an hour in 1997. Just two weeks in, during a lull in customers, I was leaning against the counter when the owner walked in. He reprimanded me for not adhering to McDonald’s golden rule: “There is always something to do.” He clocked me out and told me to come back
the next day. I was embarrassed and didn’t want to go home early because I didn’t want to explain what had happened to my family. But that experience taught me a lesson that has stuck with me ever since: whatever you do, do it with passion, and always find something productive to do. There’s always a right way to approach any task. This
principle has become my personal code of conduct, guiding me in every role I play — whether as a father, husband, mentor, manager, or entrepreneur. That early setback shaped my work ethic and approach to life, turning what felt like a failure into one of my most valuable lessons.
Leading anything is hard, especially when grappling with a difficult situation where it seems that no matter what you decide, it will have a negative impact on those around you. Can you share a story about a situation you faced that required making a “hard call” or a tough decision between two paths?
This is an insightful question because leading an organization often involves making tough decisions with significant consequences. One such challenging situation occurred when we acquired the Public Sector Division of a large software company that was losing around $1.5 million a month. To turn things around, we needed to restructure the
division to achieve profitability while also meeting our customer’s; needs. The division faced two major issues: severe financial losses and high customer dissatisfaction. My approach was to personally meet every customer within the first 30 days to understand their concerns and expectations. Based on this feedback, I realized that significant changes were needed, including a reduction in our workforce.
We had to let go of approximately 300 employees out of 900. Many of these employees had been with the company for years and some were even friends. This was an incredibly difficult decision, but it was necessary to ensure the survival of the company and protect the jobs of the remaining 600 employees. The decision was tough, but it ultimately allowed us to make the division profitable within six months, integrate it into the parent company, and significantly improve customer satisfaction. This experience underscored the importance of making hard decisions with a long-term perspective, balancing immediate challenges with the overall health of the organization.
Let’s shift our focus to the core of this interview about ‘Successful Rule Breakers’. Why did you decide to “break the rules”? Early on, did you identify a particular problem or issue in how businesses in your industry generally operated? What specifically compelled you to address this and want to do things differently? Please share how you went about implementing those changes and the impact they had.
When we launched Saber Consulting, later known as Saber Corp, it became clear that the conventional consulting methods were often rigid and impersonal. Many businesses were constrained by one-size-fits-all solutions that failed to address their unique challenges. I saw a chance to redefine the consulting model by emphasizing flexibility and client-centricity. The traditional methods were slow, outdated, and didn’t adapt to the rapid changes in technology or client needs.
Implementing Changes:
1. Customized Solutions: We prioritized crafting solutions tailored to each client’s specific problems, rather than offering generic fixes.
2. Agile Methods: We adopted agile practices to provide faster, more adaptable service, allowing us to respond quickly to changing needs.
3. Technology Integration: We incorporated advanced tools and technologies to boost efficiency and foster innovation.
4. Client Collaboration: We involved clients closely in the process, ensuring their input directly influenced the outcomes.
In the ever-changing business landscape, how exactly do you decide when to adhere to industry norms versus “breaking the rules” and forging your own way? Can you share an example?
Impact: These changes resulted in significantly higher client satisfaction, set us apart in a competitive market, and greatly enhanced our operational efficiency. Ultimately, our innovative approach played a crucial role in Saber Consulting’s successful acquisition by EDS in 2007 for $460 million. This journey validated the power of challenging conventional norms and embracing a more dynamic, client-focused strategy.
What guidance or insight can you offer to new entrepreneurs trying to follow existing and accepted industry norms while at the same time trying to differentiate themselves in the marketplace?
Simple — Don’t do it. If you’re going to follow existing industry norms, then go get a job in that industry. Starting a new business, getting from an idea to a product, getting your customers satisfaction through your practices is the definition of breaking industry norms.
Here is the main question of our interview. To make an impact, you have to champion change, get creative, and take risks. Please think back about the decisions you’ve made that have helped your business get to where it is today, and share your top 5 strategies or decisions that helped you succeed by doing things differently. If you can, please share a story or example for each.
The success of El Cristiano Tequila can be attributed to several key strategies, all rooted in our core principles: PURITY, PASSION, and PURPOSE. Here are five strategies that have set us apart:
1. Passion: My deep-rooted passion for wine and spirits has been crucial. This passion allows me to speak authentically and knowledgeably about El Cristiano Tequila, whether discussing brand strategy, flavor profiles, or the intricacies of tequila production. My extensive background in the industry has been invaluable; it’s not just about knowledge but also about the genuine enthusiasm that translates into every aspect of the business. For instance, my background helped us design a tequila that truly stands out, leveraging insights I’ve gathered over years of personal exploration and professional experience.
2. Purity: We emphasize purity by using fully mature agave, which takes six years to mature, rather than the industry standard of three and a half years. This commitment ensures that our tequila is free from additives and artificial flavors. A notable example is our decision to source agave from the Highlands of Jalisco, where the plants produce richer, sweeter juice. This focus on high-quality ingredients results in a smoother, more refined tequila that doesn’t require chemical additives, setting us apart from competitors.
3. Purpose: From the outset, we committed to giving back to the community. Establishing Fundación El Cristiano allowed us to make a meaningful impact. For instance, we provided 50 laptops to schools in Arandas and supported CASA HOGAR FRANCISCO JAVIER, a children’s home, by funding repairs and ongoing needs. These initiatives not only benefit the community but also reinforce our brand’s commitment to social responsibility, creating a positive narrative around our company.
4. Product Creation and Brand Positioning: Recognizing our need for industry expertise, my brother and I partnered with seasoned veterans. Their insights and experience helped us achieve significant milestones quickly. For example, our strategic partnerships enabled us to roll out El Cristiano in a way that surpassed our initial expectations, positioning us as leaders in the industry much faster than anticipated.
5. Marketing and Advertising Strategy: We took a localized approach to marketing, crafting tailored strategies for different markets rather than relying on a one-size-fits-all approach. This method contrasts with larger companies that often waste resources on broad, inefficient campaigns. Our targeted, dynamic marketing efforts focus on educating consumers and highlighting the value and quality of our product, leading to more effective engagement and better market penetration.
These strategies reflect our commitment to challenging the status quo and pursuing excellence, ultimately contributing to our success and growth in a competitive industry.
As a leader, how do you rally others to align with your vision? Also, how do you identify those who may not be fully committed or even silently sabotaging or undermining your efforts? What steps do you take to address these situations?
1. Clear Mission and Values: Start with a straightforward, compelling Mission Statement and set of Values. At El Cristiano, we focus on three core principles: PURITY, PASSION, and PURPOSE. These are simple, memorable, and consistently reinforced. This clarity helps everyone understand and connect with our vision.
2. Consistent Reinforcement: Ensure that every decision, from the smallest to the largest, aligns with these core values. When the leader consistently upholds. These principles set a standard for the entire team. If the leader’s embodying these values, it’s unrealistic to expect the team to follow.
3. Regular Check-ins: In a remote work environment, frequent communication is essential. Regular check-ins help maintain alignment and identify any issues early. This also provides opportunities to reiterate the mission and values.
4. Identify Misalignment: Those not fully committed or undermining efforts will often show signs of disengagement or misalignment with the core values. Clear, transparent communication about expectations helps highlight these issues.
5. Address Issues Directly: When misalignment is identified, have a candid conversation with the team member. Discuss their alignment with the mission and values, and provide an opportunity for them to realign or decide if parting ways is the best option. Clear expectations and open dialogue are crucial for resolving such issues.
By focusing on clear principles, consistent reinforcement, and direct communication, you create a cohesive team that is aligned with the vision and able to navigate challenges effectively.
Imagine we’re sitting down together two years from now, looking back at your company’s last 24 months. What specific accomplishments would have to happen for you to be happy with your progress?
Success can be measured in various ways — revenue growth, market penetration, brand recognition, enhanced support for our foundation, or new market expansions. However, for me, the ultimate measure of success would be if, two years from now, I can proudly say that our team stayed true to our core values of Purity, Passion, and Purpose. If we maintained these principles without compromise, even in the face of resource constraints or challenges, that would be the greatest achievement. Staying aligned with our values amidst any obstacles would signify true success.
You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
Thank you for the compliment — I’m flattered by your confidence in my influence. For me, the most pressing issue is the well-being of children, which has always been a central concern. However, this focus is often misunderstood. Many people conflate formal education with true education, overlooking the importance of teaching fundamental values and morals at home. It’s crucial for parents to instill a strong work ethic, good manners, and a positive attitude in their children. These qualities can give them an invaluable edge beyond any formal degrees. Moreover, addressing extreme poverty and lack of basic services for children in impoverished regions are essential. If I could lead a movement, it would focus on these areas. In fact, this is already a priority for me. Through Fundación El Cristiano, we are dedicated to improving the lives of children and supporting communities in need. You can learn more about our efforts and how we aim to expand them on our website: Fundación El Cristiano.
How can our readers continue to follow you or your company online?
Social media is where we’re most active! You can follow us on Instagram at:
@elcristianotequila
@artha
@kk90210
I’m always available to answer any questions, whether they’re about business or otherwise. Feel free to DM me directly!
Thank you so much for sharing all of these insights. We wish you continued success and good health!
About the Interviewer: Chad Silverstein, a seasoned entrepreneur with over two decades of experience as the Founder and CEO of multiple companies. He launched Choice Recovery, Inc., a healthcare collection agency, while going to The Ohio State University, His team earned national recognition, twice being ranked as the #1 business to work for in Central Ohio. In 2018, Chad launched [re]start, a career development platform connecting thousands of individuals in collections with meaningful employment opportunities, He sold Choice Recovery on his 25th anniversary and in 2023, sold the majority interest in [re]start so he can focus his transition to Built to Lead as an Executive Leadership Coach. Learn more at www.chadsilverstein.com
Successful Rule Breakers: Karan Khanna Of El Cristiano Tequila On How To Succeed By Doing Things… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.