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Rather than use Oak for maturation as the traditionalists do, Goodradigbee Distillers looked to the mightiest trees from the rugged Australian high-country. It’s these rare hardwoods that imbue the single malt spirits with unique provenance. By using the patented Australian hardwood cubes instead of old sherry or bourbon barrels for ageing, the maturation process is accelerated, producing distinctive, complex single malt spirits utterly unique to Goodradigbee Distillers. The cubes have a much higher wood-to-liquid volume than a barrel, so more wood equals more flavour and the colour of a 10-year-old single malt whisky in just eight weeks.
Tastes that are sweet, complex and revolutionary.
GOODRADIGBEE meaning: Pure Water Running Over Rocks
For John O’Connor, standing on the banks of the Goodradigbee River as a teen was an idyllic and entrancing experience. He used to fish for rainbow trout in this Snowy Mountains river. The crystal clear waters babbling through a picture perfect river valley framed by knife-edge mountains represented Eden. Pure, clean and serene, his memories of this beautifully remote yet accessible river have, strangely, guided the design of Goodradigbee Distillers. Create something utterly entrancing, and with hard work ensure it’s accessible to all.
Distilling spirit of any sort is a process that has been endowed with an almost mystic complexity, which is counter to the truth; if a 17th Century Scottish farmer can make whisky for the local Inn from barley, water and yeast, surely such a simple process and the unique spirit(s) created should be accessible to all?
Goodradigbee Distillers is a trusted business that rejects the elitist ideals of old, debunking those myths by democratising distilling, whilst retaining a bespoke fascination with product development. Creating bespoke, yet accessible super-premium spirits is Goodradigbee’s mission and primary business opportunity.
Goodradigbee Distillers Pty Ltd was born from a simple idea; can we produce super-premium spirits, quickly. The idea coalesced in my mind when I was in the Scottish town of Pitlochry, staring at a warehouse full of barrels of single malt, slowly ageing. I couldn’t help but think about all that hard work, all that production effort, sitting, waiting to be monetised. I started interrogating the process – distilling, maturation, marketing, sales. All single malt whiskies are imbued with the flavour of the liquid that was previously in the oak barrel – wine, sherry, port, and so on. I thought of an obvious question; ‘what would the flavour be like if it was untarnished?’
I decided to import Australian hardwood into the United Kingdom where I lived at the time and find out. I built four wooden cubes, not barrels, as cubes have a higher surface area than a barrel, and I reasoned this would accelerate the ageing of the whisky. Within three weeks I had arrived at an initial cube design and built an oak cube (my ‘control’ cube), a Jarrah cube, a Red Ironbark cube, and a Yellow Ironbark cube. I made some spirit in partnership with Tony Reeman-Clark, then owner of Strathearn Distillery, and we filled them.
Eight weeks later, Tony called me back up from London to witness the results. The spirit from the oak cube was clear and tasted like the original new make. The Jarrah cube was yellow, a bit bitter, and clearly needed more time. But the Ironbark Yellow was a brilliant gold in colour, and the Ironbark Red a rich, deep orange with the flavour of an aged scotch. Clearly, we were onto something.
That was the start of our journey. We were innovative back then, and this passion for innovation remains; if we can’t innovate, be truly unique, we don’t do it. Subsequent to those cube trials, we have aged gin in Ironbark, vodka in Mountain Ash, and soon, rum in Blackbutt. We have tested eight different hardwoods, and currently have another four hardwood trials in the lab.
Importantly, we are determined to be as innovative in our marketing and sales as we are in product manufacturing, distilling and provenance. Innovation, doing things differently to improve the process, is the core of what we do. Further, we are determined to be carbon neutral from the outset because we can and feel we should. $1 from each sale will go to planting the trees we use. It’s a commitment to ensure the future is bright and sustainable.
We think differently yet remain focused on quality. Our brand has been built for export. The business is achieving targets. The Board is very experienced and we are growing. That, and the fact we’re here for the long haul.
Yours sincerely
John O’Connor
Chief Executive Officer
The Adventurous Traveller – the Australian whisky drinker – presents a simple yet crucial challenge for new entrants like Goodradigbee; any new (or old brand) must create an emotional connection to the drinker and encourage repeat purchase. Drinkers, especially the young, buy into what a brand stands for as much as the functionality of the product. Brand Values mean something to these discerning younger drinkers. Hence Goodradigbee Distiller’s bespoke approach to meeting needs and taste profiles, as well as building brand values that resonate.
Goodradigbee is the only distiller in the alcoholic beverages industry that uses cubes for maturation (not used wine barrels), made from Australian hardwoods, to enhance the new make spirit.
We’re determined to ensure everything we do is unique. If we develop a product SKU that is not genuinely unique, we don’t release it and keep thinking. For example, our small-batch quadruple-distilled vodka has an excellent taste profile, but until
it is totally differentiated from every other brand, it will not be released. We produce products that enhance our positioning of ‘Revolutionary Spirits’ through differentiation, and will be successful in their respective markets.
Goodradigbee Distillers is more than just another innovation play in beverages, it is a re-thinking of the norms that drive the industry. That said, we need to achieve the same end as competitive distillers and beverage businesses i.e. great tasting spirits, well marketed and well supported through our distribution channels.
Developing product manufacturing efficiencies (speed to market) is a key part of our business model, whilst retaining quality as a core value. It is the old adage – ‘quality with speed’.
Our plan is to be an export based business, and we believe we can develop an export marketing program in two to three years. We have three key strategies, specifically discrete product provenance, sales, and marketing strategies that should lead to a very positive reception in Asia, the UK and Europe.
We are debunking old myths by democratising distilling:
Spirits are the second-most important segment in the global Alcoholic Drinks market by value. The segment only includes distilled alcoholic beverages (including blended or mixed beverages), The global market for spirits has been mostly driven by premiumization as volume demand has been mostly flat or falling in developed markets. Whisky Compound Annual growth Rate (CAGR) for 2020 – 2023 is forecast at 3.8%. 2020 revenue was US$89,946m with India accounting for US$19,789. Whisky revenue in Australia is US$1,557m and the segment is growing at 2.55% CAGR, on a total spirits market of US$3,717m and overall CAGR of 3.6% 2020-2023.
The Super-Premium whisky market in Australia is growing at 7% Monthly Adjusted Total (MAT) to June 2020, with Premium segment up 8.5%, whilst the regular segment is down 5.2%. Premium and Super premium segments are fueled by Japanese whiskies which are up 55%, and some traditional scotch whiskies like Laphroaig (33%), Balvenie (27%), Macallan (140%) and interestingly, Australian made Starward (owned by Diageo) which is up 57% MAT June 2019.
Clearly, whiskies are highly responsive to marketing investment but lack resilience when marketing spend ends. A brand experience / destination distillery will help create resilience. Mainstream brands like Johnny Walker are in decline. The trend of mainstream brands declining in volume and share is also reflected in the American Bourbon category.
The consensus is that the mainstream BLEND brands have been polarised by new entrants and new craft distillers, to such an extent that unless they re-brand completely (like Jim Beam White with 7.3% share growth) they will end up losing large chunks of share – see Jack Daniels down 4.7%, Johnny Walker Red down 11.7%, J&B down 11.5%, Vat 69 down 18.9% and Ballantine’s down 6.4%.
They key conclusion is that DISCERNING DRINKERS are adopting discerning brands, whilst the established brands are losing a portion of their traditional value-conscious drinkers. Pricing strategies for single malt whiskies are accelerating this shift ’upmarket’. There is also demographic change. Younger drinkers are adopting white spirits and whiskies that represent quality not quantity, and leading the charge in new brand adoption.
Whilst whisky drinkers are adventurous, moving from brand to brand, consistent sales performance by super premium brands like Macallan and Balvenie suggest they will stick once they have settled upon a repertoire of preferred brands. The key challenge for any new or old brand is to create an emotional connection to the drinker and engender repeat purchase.
Goodradigbee Distiller’s brand and business strategy is designed to create just such a connection.
Channel Strategies are changing in Australia in response to shifting consumer preferences. Large scale discounters are increasing share against small independent bottle shop retailers, broadening their range of specialist smaller brands and flooding the shelves with choice.
Non-store retailing and internet retailing is growing at 3.6%. Considering the small size of internet sales market share, internet retailing represents a significant growth opportunity for a business that can offer both range and a pathway for sales on the smart phones of the discerning, younger drinker. Archie Rose in Australia is working assiduously to develop its online channel through active social media marketing, and serves as a good example of this trend.
GD’s product strategy is to cover the premium whisky market vertically with locally rooted flavours that span AU$75 – AU$120 for 500ml bottles. Cube sales will centre on, for the first two years, Ironbark Red and Ironbark Yellow, with solera clients being offered Jarrah Malt Spirit subject to their tasting and blending preference. Cubes will be offered in a 5 litre variant, made from wood cubes made from the tree of origin, and stainless steel cubes engraved with the client’s name, with a wood maturation insert.
A rich red and surprisingly soft spirit aged in Ironbark Red, the heartwood of the Ironbark tree. With hints of vanilla and chocolate, it is a sweet and soft premium malt spirit that will be the mainstay of GD’s whisky stable. Ironbark Red competes with the Scotches of the Scottish Highlands (think Old Pulteney, Balvenie and Highland Park – our target), as well as the finer Rye whiskies like Woodford Reserve from the USA.
Ironbark Yellow gains its rich golden colour from the outer layers of the Ironbark tree. It’s softness promotes easy drinking along with its sweetness and hints of elderberry and orange. Ironbark Yellow is designed to compete with Balvenie, Glenmorangie and Dalwhinnie.
Native to the south western tip of Western Australia, the Jarrah tree – the hardest of hardwoods – grows to over 200 feet tall and can live for a thousand years. Complex and bitter at first, GD’s Jarrah responds well to aging. We believe that with appropriate aging, Jarrah can be an alternative to the finest premium Islay single Malts – think Ardbeg 12 Year, Bowmore 12 Year and Laphrohaig 10 Year. When distilled peated, it will open a new segment for GD.
Blackbutt, Spotted Gum, Mountain Ash, and Tasmanian Blackwood product trials commenced 26 March 2020.
GD will produce peated malt spirit whiskies within three years of start of sales (SOS). We hope to source peat from the same location as the Ironbark trees in the north coast of NSW. Peat supply is yet to be negotiated.
We have produced an ironbark-aged gin, Sweetwater Gin that is unique in the Australian and global market. There are other oak aged gins available, but none have the unique characteristics of the mighty Red Ironbark. Sweetwater Gin has an inherent sweetness due
to the botanicals used, and the tannins of the hardwood.
Freshwater Gin is made from native fruits and botanicals, and as such stands alone in the market. It is fresh and floral on the nose with a sweet and zesty palate, plus an after-taste of native pepperberries.
We will use the snow-melt water from the Goodradigbee River in the Snowy Mountains of NSW. Then once it has been filtered and purified, we will re- create its exact chemical composition for use in all of our whiskies. Each year we will produce whisky matured in cubes from the Goodradigbee water and age the spirit for enhanced provenance.
ONLY GD uses Australian hardwoods for product maturation. These hardwoods create unique flavours and colouration, enhancing the single malts.
ONLY GD will create a local hard wood whisky variant specific to countries we wish to sell into, as well as the Australian hardwood variants. For example, we will offer Karri Whisky for New Zealand, Chinese Rosewood for the Chinese market, Selangan Batu for Malaysia, and so on. Whisky matured in local hardwoods is a key new market penetration strategy.
ONLY GD uses cubes for maturation. Our patent-pending Whisky cubes with vane technology increases the surface area of wood to liquid by a factor of 2.49:1 over barrels, which accelerates the maturation process.
ONLY GD will offer clients a refill service where they can purchase malt spirit or, at a price premium, aged whisky to top up their cube ‘solera’. Our sales representatives will help them blend the solera, so they can craft an ultra premium, totally unique spirit only they possess.
ONLY GD will sell 5litre cubes, in either wood or stain less steel with wood inserts, to clients.
ONLY GD will sell 50 litre cubes to investors, and offer a buy back option of10%ROI after two years.
ONLY GD will engrave each 50litre cube with its owner’s name and batch number, and enable each owner to view their cube via remote control camera live streamed online to engender complete confidence that their investment is safe and secure in our high security bonded warehouse.
Our model is to produce and sell quality single malt spirits within a three to four- month timeframe. We have designed the business to appeal to 40 something drinkers who relish our point of difference and hence, readily introduce our unique products to their friends. As a demographic group, we call them Adventurous Travellers.
For gin, the business model is to release seasonal variants each spring and summer, expanding the range from Sweetwater Wood Aged Gin and Freshwater Gin to Drywater Gin (Navy style), Redwater Gin (aged in Red gum) and Stillwater Gin (a sloe style gin).
Our cubes are a halo product, and allow us to penetrate the high net worth market and introduce our innovation platform(s) to these discerning drinkers.
When viewed together our product planning and new SKU roll-out strategies allow us to connect with our target audience – and have something important to say – 6 times each year, which gives them reason to consider us, and buy our product,
The ADVENTUROUS TRAVELER – the Australian whisky drinker – presents a simple yet crucial challenge for new entrants like Goodradigbee; any new (or old brand) must create an emotional connection to the drinker and encourage repeat purchase. Drinkers, especially the young, buy into what a brand stands for as much as the functionality of the product. Brand Values mean something to these discerning younger drinkers. Hence Goodradigbee Distiller’s bespoke approach to meeting needs and taste profiles, as well as building brand values that resonate.
Our brand is built to engage our target repeatedly, through the following:
The Goodradigbee Distillers sales function is the most critical aspect of our business, and the key driver of growth. Distribution is everything in the alcoholic beverage business. We will resource our sales team by hiring, at first, a Sales Manager with the potential to become our Sales Director, and then recruiting sales representatives with a specific sales channel focus – ie Independent retailers bars and restaurants, etc.
Importantly, the brand is an easy ‘sell’ for sale people. The key for the management team will be to reward application, effort and results.
Our sales strategy is focused on building enduring relationships with customers. For each cube we sell, we will offer a refill service of either new spirit or, at a higher cost, aged whisky. Cube sales are a genuine innovation in this market. As gifts
to Fathers, a mantle-piece hero for HNWIs, or a quality spirit sold by volume to experienced drinkers, the cube will become the new norm for whisky provenance and marketing. As such, our patent-pending cubes, GD’s brand and product trademarks, and use of natural hardwoods, means our level of IP will be unmatched amongst distillers globally.
There are 7 key steps to growing our business to a $3.5m EBITA business in 3 years:
Production elements:
Production Methods. Again, traditional methods will be employed to provide quality spirit. Automation will not exist in the still house as quality and flavour can not be judged reliably by machine. Atmospheric pressure makes a difference to distillation decisions, so taste and smell will be the main methods using in distillation. Botanicals vary, grain varies, so automation is out, and quality comes above everything else.
Production Approach Summary: Keep it simple. Use traditional equipment and methods, combined with a surround policy of efficient and energy saving measures in order to produce a repeatable range of small batch quality products.
Crowd Funding helps Australians to share in our success and fuel our growth, as we’re built for export – our patent pending bespoke single malt spirit cubes and spirits are the halo product for high-net-worth individuals in China, Singapore, Malaysia and Japan.
Our export strategy revolves around developing single malts and gins matured in indigenous hardwoods specific to the country of export, ie Karri in New Zealand, Rosewood in China and so on.
Ultimately, that is why Goodradigbee represents a good investment. We built this business from the ground up to be a global brand.
Food & Drink Business editor Kim Berry talks to John O’Connor, founder of Goodradigbee Distillers about his journey into the world of distilling spirits and what happens when you age them in Australian hardwoods.
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