Viewpoint – James Brindley Managing Director, Lion Co.

Viewpoint

JAMES BRINDLEY HAS HELD THE POSITION OF MANAGING DIRECTOR OF LION FOR THE PAST TEN YEARS AND HAS BEEN WITH THE COMPANY FOR 25. HE HAS WITNESSED SIGNIFICANT CHANGE IN THE BREWING SECTOR OVER THIS PERIOD AND HAS PLAYED AN INTEGRAL PART IN MANIFESTING SOME OF IT. HE SHARES HIS VIEW ON THE BUSINESS OF AUSTRALIAN BREWING AND THE IMPORTANCE OF CUSTOMERS AND CRAFT.

This year you celebrated 25 years with Lion and ten years as MD. What do you see as the key transformations the company has experienced in this time under your stewardship?

A lot has changed in ten years. For over ten years we had a fruitful partnership with Bacardi, which we exited but we have now re-entered this category with craft spirits. We once had a beautiful wine portfolio in the Fine Wine Partners business that we exited. We continue to partner with Heineken and Guinness, and of course we had a long partnership with ABI until their acquisition of SAB Miller. With the constant growth of craft breweries and further recent acquisitions, the beer market in Australia is always exciting and about to enter a new era. The beer industry has evolved over the last two decades, which has seen a boom in craft breweries, and we are proud to have been at the forefront of this movement, led by our good friend and colleague Chuck Hahn who is still going strong! One ongoing change is the societal shift towards more responsible drinking. Almost every government statistic indicates Australians, on the whole, are consuming alcohol more responsibly. I think industry participants, including Lion, have played a significant role in achieving this change through our support for DrinkWise. Right now, while we remain focused on growing beer, we are really excited about growth outside of beer too. We have extended our focus on craft beyond beer to spirits, and we are energised by our new partnerships with Four Pillars Gin and Vanguard Luxury Brands. We have launched Australia’s first seltzer in Quincy, and we are a partner of Remedy, Australia’s leading kombucha. The combinations and possibilities to fulfil the consumer needs of our time and to achieve growth are endless. Lion is certainly a more diverse and inclusive company than ever before. In 2016 we closed the gender pay gap and we continue to work towards a 50:50 gender balance as quickly as we can. We are also more mindful of our environmental impact now. Brewing can be a very energy-intensive industry so we are looking at different ways we can minimise this.

How is the face of the Aussie beer scene changing? How are Australians consuming beer differently today, than say ten, twenty or thirty years ago?

I remember when I had my first beer at the Commercial Hotel in Bathurst many years ago and there was only Tooheys New or Tooheys Old to choose from – both excellent choices I might add! And back then most people only drank one beer brand on every occasion. These days our repertoires have grown to six beer brands consumed regularly. This is reflected in the incredibly diverse tap banks, the huge range of choice in retail and the now six hundred plus breweries in Australia. We are spoilt for choice. Drinkers engage with beer differently now too. There is a far more vibrant culture around the amber liquid – and it is more about the whole experience, as opposed to just a schooner on a coaster, which is a wonderful experience in itself. From food matching, to the brewing process, and experimenting with different styles and ingredients, beer appeals to a much wider audience now and this is something we should celebrate. We have also seen a rise in moderation, which is how XXXX GOLD became Australia’s biggest beer. Iron Jack has been very successful in this space too. But more recently we are starting to see a real demand for alcohol-free options. Heineken 0.0 is a fantastic premium product, which suits all occasions and does not compromise on taste at all.

Tell us about the long-term strategy behind the decision to diversify into the gin category.

We have a long history in craft. Chuck Hahn is the godfather of craft beer in Australia and created Hahn, James Squire and Kosciuszko. We were founding investors in Little Creatures and more recently have developed Bevy in Western Australia, Tiny Mountain and Eumundi in Queensland and Malt Shovel Brewers in Sydney. We had a thought that we could transfer this experience in craft brewing, with our history of investing in great businesses allowing

Aerial view of solar panels on the XXXX Brewery

the founders to continue to run them, to craft spirits. Four Pillars, recently awarded World’s Best Gin, was established by Stu Gregor, Matt Jones and Cam Mackenzie in 2013, and what they’ve achieved in that time is remarkable. It is a fantastic business with great people and a real passion for exceptional product, which is evident to anybody who has visited the distillery door in Healesville, or met anyone who works for Four Pillars! Craft spirits, and particularly craft gin, continue to show strong growth in Australia, and entering this category fulfils our commitment to give drinkers a range of beverage options to suit all occasions. It is a really exciting category to be in, and it will see Lion’s craft journey continue beyond beer. Another important part of this is our partnership with Four Pillars’ domestic distributor, Vanguard Luxury Brands, founded by James France, which boasts an impressive portfolio of brands including Michter’s, Flor de Cana, and Tequila Fortaleza. The Vanguard team are wonderful craft and premium spirits advocates and play an important role in educating people on different ways to consume spirits.

Lion is very strong on sustainability with some recent high-profile investments (Lidcombe Brewery PPA with Engie and AHA NSW) in renewable energy. Could you elaborate on these and explain why is this a priority for Lion?

We are extremely proud of our involvement in the world’s first industry-scale aggregated Power Purchase Agreement (PPA) with the AHA and Engie. This deal will significantly lower electricity bills for participating pubs and will reduce Lion’s carbon emissions in NSW by forty per cent. Our customers are truly at the heart of this initiative, and we are focused on helping hotels right across the state thrive. Like all businesses, pubs are feeling the pinch of rising energy costs. In addition to the PPA, earlier this year we completed a new solar array project at the XXXX Brewery in Queensland, which saw the installation of more than 2,200 solar panels on the iconic site’s roof. Little Creatures in Geelong has also benefited from a Victorian Government grant to install a new solar array. As the site grows in Geelong, it is important we ensure it does so sustainably. This project will be completed early next year and will provide about twenty-five per cent of the site’s electricity requirements. We’ve also announced recently that from 2020, our breweries will be carbon neutral.

You must be thrilled to be the first to market with Quincy, Australia’s first seltzer. How big do you think the market here could be for seltzer?

Lion is proud to be able to introduce Australians to this category with Quincy. Though we are known for our leading beer portfolio at Lion, Quincy is an innovative response to the growing demand for a lighter style of drink that tastes great too. We actually use our brewing credentials to make Quincy, and through a rice fermentation process, the alcohol is naturally occurring. The end result is a delicate taste profile with very low bitterness. The popularity of this category overseas can be attributed to the trend towards mindful consumption – a trend we are definitely seeing in Australia too. Consumers wants choice, without compromising on quality or taste. When you don’t feel like a wine, spirit or cider, Quincy is a fantastic option. Like the boom in RTDs in the early 2000s, and the cider boom in the late 2000s, perhaps seltzers will be the next boom category.

Gin Sales are Hot and Al Fresco

TEN OF THE TOP TWELVE WHITE SPIRIT BRANDS IN THIS YEARS’ ‘HOTTEST 100 BRANDS REPORT’* ARE GINS, GROWING BY A CUMULATIVE 2,816,000 LITRES OVER THE LAST 12 MONTHS. THAT’S A LOT OF GIN, AND WHEN WE TRANSLATE THAT INTO YOUR VENUES, AUSTRALIAN CONSUMERS ARE EXPECTED TO DRINK AN INCREMENTAL 30-40 MILLION G&T SERVES OVER THE NEXT 12 MONTHS**.

The consumer’s thirst for the Gin and Tonic shows no sign of abating, and as sales of the classic drink peak over the summer period, it will be the venues set up for success that end up cashing in.

Fever-Tree are launching their summer Gin & Tonic Garden just in time for you to grab a share of the summer trade with an overhaul of some of the best outdoor drinking spots across Australia. As the demand for desirable drinking gardens continues to grow alongside the nation’s love affair with the timeless G&T, the campaign will assist venues nationwide dress and revamp their outdoor spaces to create the ultimate G&T Garden.

Building on the success of their 2018 summer activity, Fever-Tree is aiming to pioneer the movement with access to custom-made Fever-Tree furniture, venuespecific menu designs, and pairing guides.

Fever-Tree Australia Brand Manager, Nikki Daven, explains, “Fever-Tree will help facilitate the creation of beautiful spaces in which G&T lovers can push the boundaries and explore the world of premium mixers. The campaign aligns perfectly with the release of our new Fever-Tree Cucumber Tonic and Fever-Tree Clementine and Cinnamon Tonic, which will be entering Australian markets in time for summer.

“Participating venues will also have access to styling tips and tricks, custom Fever-Tree Gin and Tonic menus, and FeverTree training sessions for all staff with FeverTree Brand Ambassador, Trish Brew.”

ATTRACTING CUSTOMERS

Footfall will be driven to all Fever-Tree Garden venues with an interactive map on their website, a platform where G&T lovers can find their local sunspot simply by entering their postcode. The site will also include overviews of each Garden, providing addresses, information, and images of each space.

A full digital campaign will further be running through Facebook and Instagram to maximise awareness and encourage consumer engagement.

Fever-Tree Brand Ambassador, Trish Brew, says, “With Gin and Tonic as one of the nation’s favourites tipples, and our Australian love for outdoor drinking, we are excited to see some creativity and help do up some great outdoor spaces into beautiful Gin and Tonic gardens for the summer months.”

THE SEARCH FOR AUSTRALIA’S BEST G&T GARDEN

Each venue will have the opportunity to enter into the search for Australia’s Best G&T Garden. The venue that stands out from the crowd will win the ultimate G&T experience, visiting London in June 2020 as well as passes to the Fever-Tree Championships, the pre-Wimbledon men’s ATP tournament at the prestigious Queen’s Club London.

During the activation period, applicants can enter their venue online. Entries close in March 2020.

The Fever-Tree G&T Garden campaign kicks off this summer, with iconic pubs across Australia taking part.

*IRI Research, see page 48 for results **snooper research 2019

A FRESH CUCUMBER TWIST ON YOUR G&T