Melbourne’s Hawkers Beer and Sydney’s White Bay Brewery are the founding brands of the newly formed beverage group, Social Drinks Group (SDG). It officially starts trading on 1 February.
The move means the group has two breweries from a standing start: Hawkers’ 7m litre facility in Reservoir, Melbourne, and White Bay’s 2m litre facility in White Bay, Sydney.
Judd Michel is CEO. He was formerly CEO and MD of Heineken Group in Australia, and prior to that, a director at Coca-Cola Amatil (now Coca-Cola Europacific Partners) for alcohol and coffee.
Michel told BARTENDER that the genesis of Social Drinks Group was to find synergy for brands that didn’t compete with each other and provide respite from some of the industry’s big challenges.
“Hawkers and White Bay make damn good beer. They’re different brands in different regions and when you create the right portfolio, you can start looking at sustainability as a business. And the beweries can keep making exceptional beverages,” Michel said.
Hawkers founder, Mazen Hajjar told BARTENDER, “The goalposts have shifted so much in recent years. With Social Drinks Group we have a shared vision. We can service our local crowds as well as getting access into new markets. Combining our sales, distribution, rationalising processes and advancing quality controls takes some of the pressure off.”
Michel said, “I am a pragmatist. You are not going to challenge the duopoly, the excise is ridiculous, and the landscape is not equal. I have worked in organisations with big brands, and it is hard to make a profit if you’re not in the duopoly. But it is what it is.
“So, you find your niche, work on it, and make good commercial decisions,”
Michel said Social Drinks Group will expand through mergers, acquisitions, or distribution partnerships. But the main focus will always be on the brand, not shareholders.
“It will be finding a partnership where there are no brand conflicts, where we can optimise operational synergies – maybe four or five brands, that’s it. And it could be an RTD, or a probiotic mineral water, our minds are open. It’s about sustainability through optimisation, and people,” he said.