 THE Melbourne-based Gillon Group of Companies has taken a 10 per cent stake in Strait Brands Pty. Ltd., parent company of award-winning Tasmanian spirits producer Strait Drinks. (November 23, 2007)
With a combination of funding for new production facilities, plant and equipment, cash flow for further expansion and professional expertise from within the group, the investment is worth $1.1m. In addition, Gillon Group, which trades on five continents, will have exclusivity to develop 10 high profile export markets for Strait.
The Gillon Group ( www.gillongroup.com.au) is a conglomerate of property development, manufacturing and investment businesses headed by chairman and former Olympian Peter Gillon. Strait Drinks began production of Strait Vodka and a range of premium spirits and innovative spirit blends, at Beauty Point, in Tasmania, in April 2006, and has since earned two medals at the International Wine and Spirit Competition, in London.
The company is committed to accelerating growth with a focus on international markets. It is currently negotiating supply arrangements in Asia, including China and Russia; North and South America and the European Community.
Domestically, as a result of the Gillon investment, the company expects to begin soon a national roll out of its portfolio.
"We have had a clear focus on the development of overseas markets because they will finance our national roll out in Australia," said Strait Drinks managing director Philip Ridyard.
"The biggest impediment to the launch and progress of domestically produced spirits brands in Australia is the weekly excise duty impost which currently represents $18.35 of ever bottle we sell from our bond at Beauty Point. That's $12,000 on every pallet.
"While profit margins might be narrower, we pay no duty on exports and consequently our export activity, combined with the Gillon Group investment, will further enhance our Australian expansion."
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