Australian distillery Cavu Distilling is gearing up to introduce its rum brand, Nil Desperandum, to the UK market.
The Queensland-based privately-owned business is in preliminary discussions with potential customers, co-founder Matt Hobson revealed.
Established in 2019, Cavu Distilling commenced production a year later. The company promotes Nil Desperandum and Sunshine & Sons, a vodka-to-gin brand, with the latter being the more prominent in terms of sales.
In collaboration with Australian distributor Proof Drinks, the distillery distributes both brands in its domestic market, notably through major off-premise channels like Endeavour Group and Coles.
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Speaking at the IFE trade show in London, Hobson mentioned that the UK is the initial international market where Cavu Distilling is aiming to introduce Nil Desperandum.
“Really, we’re trying to understand the market and choose the best partners with whom to premiere. However, initially, we don’t plan to compete for shelf space in stores like Tesco,” he commented.
Advanced discussions are underway with a number of boutique retailers who are excited about the relatively unknown Australian rum market. In stores like Selfridges, Harrods, and other establishments, maybe, is where we hope to establish ourselves,” he clarified.
Hobson chose not to disclose the retailers currently in discussions with Cavu Distilling. He further mentioned that the company is actively seeking a distribution partner in the UK and has initiated some preliminary talks.
“I cannot provide particular details, but we are hopeful about finding a pathway,” he said.For us, the distribution channel presents difficulties. We’ve joined up with Australia’s Proof Drinks, a significant UK distributor. But they think we’re too little for them. The premium niche market is our main focus.”
“We’re likely looking for a distributor focused on independent off-premise sales, someone who actively promotes exceptional spirits from around the world. In Australia, we primarily promote our brand through the on-trade and direct-to-consumer channels, which then filters down to the mainstream market. Retailers like Sainsbury’s, Marks and Spencer, and Tesco aren’t our primary focus for brand promotion,” he explained.
Cavu Distilling employs a 6,000-litre wash still and a 2,500-litre pot still to craft its molasses-based rum, which meets the Australian Certified Organic Standard. The company ages its rums in Bourbon barrels, previously used for Sherry and Port.
Hobson believes that obtaining listings in the UK could enhance the profile of Nil Desperandum in its domestic market, as he notes that rum enthusiasts there often gravitate towards international selections.
“Our deliberate strategy is to achieve success in the UK. Australian rum hasn’t reached a premium status within Australia,” he explained. “After several years of marketing this product, we’ve found that when Australians choose a rum, they often opt for an exotic rum from places like Venezuela. They’re seeking something unique to impress friends and others,” he added.
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“Our goal is to invest in the UK market, flourish there, and then let our domestic market benefit from that success. Australians often look to the UK, the original ‘mother’ country, for guidance, especially to those who are more knowledgeable and discerning in their drinking choices,” he noted.
“This is the first export market for Nil Desperandum. It’s challenging. Some might say we’re ambitious, but it carries significant prestige. While it’s a tougher market, it’s crucial for our brand’s success here. Surprisingly, success here can also stimulate interest in our domestic market,” he explained.
Hobson, who co-founded Cavu Distilling with former brewing and restaurant executive Michael Conrad, declined to disclose the company’s annual sales due to its status as a privately-owned business. He did mention, however, that the company has reached the break-even point.
The two co-own Cavu Distilling and have not yet sought external funding.
“Choosing when to bring in outside finance is a long-standing founder’s dilemma. Hobson added, “There will always be arguments for why it ought to have happened sooner.””We have a bank that is very supportive and believes we can become the next big Australian brand. They recently refinanced us,” he said.
“External funding has always been attractive, especially from those who can support our growth,” he continued. Investment from a partner with a distribution channel is more alluring than direct finance.”
“We’re constantly exploring opportunities. Michael and I have always been of the mindset that we’re content being minority owners of a larger entity. Our vision has never been to remain small. If there’s a trade partner interested in handling, for instance, distribution in the UK and Europe and they want a stake in the company, we’re definitely open to discussions,” he explained.