Brunswick Aces Distillery is eyeing markets in Europe for the Australian company’s gin and non-alcoholic alternative.
Speaking to Just Drinks, co-founder Stephen Lawrence said the Melbourne-based distiller has tested its products in Europe and is in talks with distributors in a bid to grow its presence in selected countries in the region, including the UK, the Nordic markets and Italy.
“The UK is obviously from … the fact that gin is well-loved in and is a very popular market but also that the non-alc sector is really prominent. Certainly, I would argue the UK is probably the most forward-thinking in that regard,” Lawrence said.
“In terms of on the continent, Belgium, the Nordics are strong in that area [non-alcoholic spirits]. We’ve also got Switzerland, Italy and a couple of the less likely ones like Poland, where we have good connections.”
Lawrence suggested countries in eastern Europe offer an opportunity for Brunswick Aces Distillery’s non-alcoholic alternative to gin that it calls sapiir.
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“We certainly see some growth [for the category] mainly because they’re looking for it,” he explained. “If you’re here in the UK, most distributors already have non-alcoholics. It’s established. Whereas, on the continent, typically the more eastern regions, it’s less well established there but they are starting to see the trends. We’re looking to capitalise on that and, being a brand that provides both, it’s a much easier sell, an easier way of convincing someone to try the alcoholic version and, because the non-alcoholic is the exact same flavour profile, we can ease them into that transition a little bit more easily.”
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By GlobalDataThe company, set up in 2017 in the Melbourne suburb of Brunswick East, has its own distillery in its home city, supplying to on- and off-premise accounts in Australia – its largest market – and a clutch of other countries including New Zealand and Singapore.
Ex-Britvic exec joins in senior sales role
Former Britvic executive Gurdeep Dhaliwal has joined the distiller as director of global sales to spearhead the firm’s attempts to expand in Europe.
“The scope that we have, particularly with Gurdeep coming on board, is quite incredible,” Lawrence asserted. “Particularly with his network and background and given that he’s come from Britvic. He was heading up [mixer brand] London Essence. He’s kind of flipping over to the other side of the drink and doing gin but he’s got some really appropriate networks of distributors and he’s chomping at the bit and raring to go.”
While Brunswick Aces Distillery would not turn away interest from off-trade buyers, Lawrence said the company’s focus in Europe would be on securing on-premise accounts.
“Because of that growth in the non-alcoholic category in particular, distributors, customers, are interested in pushing it onto the off-premise quicker than we would like. The last thing we want is to have dusty stock because people will see it and don’t know what it is. Going back to the old adage of ‘try on, buy off’ is really what we’re trying to follow,” he said. “Ideally, we are pushing for on-premise action but inevitably there will always be people that are just putting it straight on the off-premise shelves.”
By the end of 2023, Brunswick Aces Distillery is aiming to “establish a foothold in key markets” including the UK and the Nordic countries. In 2024, the distiller is eyeing further expansion.
“By the end of next year, it would be adding some of those tourist-focused markets, whether it’s the Greek islands, whether it’s the Canaries, those places where the people that start to like our brand in the UK go on holiday.”
The company’s fiscal year runs to the end of June, by when it is hoping to have generated sales of AUD2m (US$1.3m), double the year before, Lawrence said. “It will be interesting to see. It could be a little bit below that because we don’t get some of the international markets over the line. That will be a large portion of what we’re up to but then equally could far exceed that in the following year because we’re catching up.”
The distiller is not yet profitable. “No, we put all of our revenue back into growth. While we could make a profit, we don’t, I think is probably the best way of putting it,” Lawrence said, pointing to the company’s investment in its own production and in staffing. “It’s all aimed at growth and, certainly at the moment, the P&L doesn’t show up profit because we’re expanding so much.”
In Australia, Brunswick Aces Distillery wants to build its presence in some of the country’s other major cities, including Sydney, Brisbane and Adelaide. Domestically, the company sells to the on-trade and into off-premise customers such as Dan Murphy’s.
The distiller also has a non-alcoholic bar in Melbourne. Lawrence said there had been interest from outside partners in expanding the concept.
“We have probably had half a dozen people from various parts of the world ask to franchise the bar concept. We haven’t gone down that line but it is something that we’re really interested to do in the future as we grow.”
As well as taking the position of global director of sales, Dhaliwal also joined as co-owner after participating in the distiller’s AUD500,000 crowdfunding last year.
Asked when Brunswick Aces Distillery expects to next need to raise funds, Lawrence said: “It’s probably going to be 18 months, so towards early/mid next year, we’ll probably start thinking about it. Growing things, we’ve obviously spent some money at home and then also abroad. There’s always that valley of death when you’ve got to spend money before it comes back. At the moment, we’re not out of it but we’ve got some really good signs on the horizon.”
