A lot is happening at Good Drinks Australia right now. Over the past few months, the WA-based group has reported strong profit growth despite stiff market headwinds in its 2024 financial results, taken out two Australian Drinks Awards, and joined the Drinks Association in a move that sets the business up to build on current momentum.
Drinks Trade caught up with Mick McKeown, Sales and Marketing Director, to see what's happening behind the scenes and get the run down on things to come for the proudly West Australian business kicking goals across the continent.
Image: Good Drinks Australia Team at the 2024 Australian Drinks Awards. Mick McKeown is pictured on the far right.
Good Drinks Australia (GDA) has reported an underlying EBITDA of $8.2m, up 14% on the previous year, with growth reported across both the core business (owned and partner brands), and the hospitality business such as Matso's Sunshine Coast and Gage Roads Fremantle venues. Each of the GDA international partner brands also grew in their respective segments, with Rekorderlig Cider also recently joining the portfolio.
There has been a sustained investment in sales and marketing at GDA, with the addition resources added to their sales at a time when many are moving in the opposite direction. Over the course of the recently completed financial year, total expenditure increased by $0.5m to $18.9m. The strategy appears to be working as GDA sits fourth in total beer market share behind CUB, Lion and Coopers – and as a fiercely independent and Australian-owned business no less.
Less than a year into the job, Mick McKeown couldn't be prouder of the way his team has approached the strategy and challenge of reshaping the business: "I joined Good Drinks Australia 11 months ago and I could see that there was a need to restructure for growth. We've completely overhauled our commercial model: we're showing up and engaging with customers and so far it’s been really well received by retailers.
"Gage Roads is a powerhouse over in WA. Matso’s is really growing as a national brand of scale. We've been able to get Miller Chill back into growth in a declining category which has really been significant; and we are even seeing cider turn around, Magners is really leading that."
The sales data was directly reflected in this year's Australian Drinks Awards where GDA brands won two categories: Gaining in Popularity for Cider and Craft Beer, with Magners and Gage Roads Hazy As respectively.
"The Drinks Association Awards (ADA) further fuels the recognition for the growth we are achieving. We want to be a real third force in the alcohol industry. We're not going to be the third biggest anytime soon but we're really ramping up to be able to provide retailers a real third choice to do business with."
"We're in a relationship business. Alcohol is a sociable product, and our purpose is to make Australia a more sociable place. We like to say 'one Good Drink at a time'."
"It's all about connection, and we now have a field team out there connecting more often with the right people; we've got a call centre now and a national sales support team alongside our field team."
"The truth is this is just the tip of the iceberg, there are still a lot of people in Australia asking, who are Good Drinks? What brands do you have?"
Good Drinks Australia was previously known as Gage Roads Brewing Company based in Fremantle and founded by Peter Nolin and Bill and John Hoedemaker in 2002. Gage Roads is named after the body of water between Fremantle and Rottnest Island, otherwise known as a Roadstead – a body of water sheltered from ocean currents.
"Our approach to business is to be really easy to deal with; be honest and transparent, don't die wondering, respect each other, be obsessed with quality, and have fun."
“The way to facilitate that is to make sure that our field team have ownership of their respective patches, and they're having fun."
GDA recently joined the Drinks Association and McKeown now sits on the board alongside his peers at CUB, Lion and Coopers.
"The Drinks Association is the preeminent association for our business in Australia and my vision for Good Drinks is to become that third force in the alcohol industry, so we need to be there with our peers".
"The Drinks Association provides the perfect platform. We're still a medium-sized company, so to be able to access what the association offers - both from an insights perspective and to be able to compare with other people in the industry in terms of guidelines and work policies - really allows us to leap from where we are."
"There's so much resource and the team are so helpful. I've been asking for a whole heap of stuff already. Then there's the Advantage Survey which is a really big piece, because that's how we're measuring our progress over the next three years."
Good Drinks stated ambition is to have "a Good Drink" in every fridge and pub in Australia, to be recognised as a top 10 supplier in the next three years and to double its market share in that timeframe.
For the summer ahead, McKeown is backing in the Matso's Vodka Lemon Lime Crush, along with continued growth of Magners Cider and Miller Chill.
"Miller Chill just spikes in the summer. It's that beautiful, crisp, refreshing flavour. It's just perfect for the summertime. We're putting a lot of investment in above the line advertising, getting more eyeballs on our portfolio.
“We're backing beer in a big way, and we want the trade to be excited as well. We've also got our Matso's Lemon Lime Crush, which is just launched and it has done exceptionally well from the get-go."
Good Drinks is a Category One member of the Drinks Association