INTRO
Welcome to Episode 2, and this week it’s all about booze!
I’ll be talking to 2 gents about their 2 very different products. Later on I’ll be chatting to Michael Kaplan of Great British Vermouth, but first up it’s Calum Leslie of Peat Reekers Whisky. I’ll be talking to him about Richard Branson, dabbling in the tech sector, and launching a new whisky with an old story.
CALUM LESLIE
“Life’s too short to work for someone else”. This is proudly placed on one of Calum’s websites. Why?
Because you might as well love what you’re doing! You’re going to be working for some much of your life that you might as well enjoy it.
Apart from a very short spell working in a health food store as a teenager, Calum has never had a real job. He studied law at University, and took one year studying abroad in Austin, Texas, where he was lucky enough to be taught by Adam Dell, the brother of Michael Dell of Dell Computing.
Calum’s first company was a technology company called Wooju – the social, decision-making app. Eventually, Wooju was passed onto a hobby developer after a buy-out deal with a Canadian investor fell through. Calum put this down to live-and-learn, realising that unless you are the top 0.001% of free apps (Instagram, Snapchat etc) there isn’t much money to be made.
After moving back to Edinburgh, Calum started a Whisky subscription company, YoCo Club, and joined RBS Entrepreneurial Spark. It provided a strong network and a good launchpad to build his company to around 1000 monthly subscribers. While at E-Spark, Calum met Sarah from Pixey.io who launched a plug-in for Instagram that allows you to purchase users Instagram photos, effectively creating an enormous stock-photo database. Calum and Sarah share the same investors.
PEAT REEKERS – DOUBLE STANDARD
Peat Reekers eventually attracted the interest of an investor, who asked if Calum would like to launch his own brand of Whisky or continue building the subscription base.
The story of illicit distillers, the Peat Reekers, led Calum to develop an Islay blended malt. Alongside illegal distillation of alcohol the Peat Reekers would pay-off the excisemen, who were supposed to stop them from distilling, with the spirit they were producing.
This blended malt lands slap-bang in the middle on the “smokiness scale” of Islay whiskies, meaning it is characterful and distinct, yet smooth and sweet at the same time.
Calum insists that you drink this whisky in whatever way you like. Ice cubes? Water? Coke? Straight? You paid for it – you decide.
LESSONS LEARNED
While running Yoco Club, Calum ran an IndieGoGo campaign that didn’t quite reach its target. In hindsight, he would have preferred to gain traction and momentum and offer equity as a reward, rather than incentives.
And although I’m sure Calum would agree that, based on his own goals a few years ago, he is running a successful company, he is more heavily focussed on growing and running his company than celebrating success along the way.
THE GRAND PLAN
Peat Reekers is mainly targeting the younger market while trying not to alienate the traditionalist whisky drinkers. All whisky tastes good, so as long as the brand can expand the market to new drinkers, Calum will be happy.
Eventually, Calum would like to take a company public, whether it is this company or the next.
WHO WOULD YOU LIKE TO BE LISTENING TO THE PODCAST?
If Calum was still running Wooju he would probably have picked someone like Richard Branson (although he would still like to meet him). Today, he would probably be more industry focussed; the likes of Ian Curle and Paul Ross of Edrington who could help with building his brand. And another chance encounter with Adam Dell wouldn’t go amiss.
Thanks to Calum for talking to Starting Startups Podcast. If you happen to know Ian Curle, Paul Ross or Richard Branson, please free to get in touch with Calum or with me (colin@startingstartupspodcast.com).
ADVANTURES
Advantures is a small campervan hire and conversion company near Inverness, Scotland. It’s run by 2 good friends, Jack and Colleen, and they make the most beautiful vans.
The 2 newest additions to their fleet, Cooper and Sheila, have bespoke fitted kitchens, wooden gym-hall flooring, scaffold plank work-tops and Belfast sinks. My girlfriend and I will be heading north to try them out later in the summer.
If you have a spare few days, or a week or two, head up to Inverness, grab one of the vans, and fall in love with the Highlands.
You can find more information at http://www.advantures.co.uk or on Instagram @advanturesscotland and @advanturesconversions.
MICHAEL KAPLAN
Michael, who is a graduate of Harvard and Oxford Universities, describes that making Vermouth is a fairly logical conclusion having previously studied European history.
The need for humans to subsist, and to subsist with some pleasure, is a large part of history for as long as people have been people. Food and drink have shaped the economies and cultures that we know today.
“PROFESSIONAL GRANT APPLICATION WRITER”
Starting at a producing station called WGBH in Boston, Michael worked in public television after graduating from University. Unfortunately, the lack of funds available as a public agency meant he spent less time being creative and more time applying for funding. This led to him launching a communications company.
BOZO SAPIENS
Michael’s book, “Bozo Sapiens: Why To Err is Human“, talks about humans quick decision-making skills and why inevitably making incorrect decisions is, in the long run, a very good thing.
GREAT BRITISH VERMOUTH
Michael launched the Great British Vermouth company almost a year ago and has since had a very interesting year discovering an entirely new industry.
ANY UNEXPECTED SURPRISES?
The food and drink industry as a whole has changed dramatically in the last few years. The need to constantly change and adapt your products has led to a more sophisticated and fickle public. As a whole, Michael believes people are more interested and excited to test a new or unknown product than they would have been in the past.
He also explains that having a story and a plan that extends and expands into the future is incredibly important: Relying on customers providing a repeat business just won’t work.
The psychology behind alcoholic products have also changed. They have changed from being a thing to being an experience, which makes the story, attributes and atmosphere behind each product even more important.
WHAT IS VERMOUTH?
Vermouth is the 3rd oldest alcoholic drink in the world, whether it has been known as Vermouth or not. The preservation of herbs as medicine, as well as a drink or a culinary ingredient, eventually led to it becoming an alcoholic beverage.
Located just outside of Edinburgh, on the Dalmeny Estate, the selection of herbs available to Great British Vermouth is perfect. All of the 24 necessary herbs can be grown on site and they grow as if they have always grown there.
The Vermouth is made by infusing neutral wine spirit with a selection of herbs. The spirit draws out the colours and flavours of the herbs and once compounded, you have Vermouth.
HAS IT BEEN VIABLE?
So far Michael has found that the company has been viable. He has intentionally concentrated on slow, maintained growth because he aims to avoid becoming very fashionable for a short time, and would like to concentrate on building and deepening customer relationships.
IS EDINBURGH THE PERFECT LAUNCH PAD?
The customer base provides almost an unfair advantage to a new company like Michael’s. The passionate and inspired barmen, waiters and sommeliers of the city are the exact people you would choose to be pouring your drink for customers.
The cultural and social links betwen Edinburgh and the rest of the world are also an enormous leg-up when launching a new product.
COMPETITION?
There are other British craft vermouth makers, and international craft producers all over Europe. They compete alongside the big international producers, Martini Rossi for example. All of them are creating their own versions of the spirit, but the Great British Vermouth company currently has a niche of its own.
LESSONS LEARNED
Michael doesn’t have any regrets that he would count as specific “business rules”. There are occasions where he could have made slightly different decisions but he has enjoyed building his knowledge and learning about such a convivial industry.
The hard work and time and effort that have gone into producing the vermouth is summed-up in the moment when Michael watches somebody’s expression change having had the first sip. “This is actually quite nice” is a common reaction!
WHO WOULD YOU LIKE TO BE LISTENING TO THE PODCAST?
If Michael could pick someone to be listening to the podcast, he would probably pick an influential chef. He wouldn’t have to explain to them what vermouth is or how it’s made, but they would be able to realise what is possible with the vermouth and, more importantly, be able to educate the public about it.
As always, if you are able to help connect either of my guests with any of the people they would like to be listening, then please get in touch. drop me an email on colin@startingstartupspodcast.com.
Also, if you have any comments or questions about the podcast, or know anyone that you would like to hear on the show then please reach out.
Thanks for listening, talk to you soon.
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