CCBR Business Review

4 Gavin Yates – Steinbok Brands From barman to entrepreneur & innovator Corporate Insolvency & Personal Bankruptcy Specialists www.shawgidley.com.au CO V E R S T O R Y GAVIN YATES BEGAN his career in the 1990s working behind the bar by night mixing classic cocktails and with his father Norm by day manufacturing breakfast jams for the hotel and aviation sectors in their small family business, Yates Traders. An innovator from the get-go, Gavin created his first unique product for bars while still making jams. It was a shot glass with a pull- off lid, an idea inspired by a combination of the miniature jars used in the family busi- ness and the high incidence of shot glasses being taken home by bar patrons. Filling each glass with a cocktail mixed with his newly created schnapps – the first Australian schnapps on the market – Gavin knew that patrons would continue to steal the glasses, only now the brand name would go home with them! And so, the Steinbok brand was born. Gavin took his idea to Liquorland in Silverwater and received his first order in 1997. By 2000, he had sold more than a mil- lion. Since then, Steinbok Brands has gone ahead in leaps and bounds, with Gavin creating an ever-evolving range of unique products that appeal to both consumers and bartenders, all while never shying away from taking on the multinationals. Today the Central Coast manufacturer of schnapps and liqueurs supplies major bottle shop chains, bars and hotels Australia-wide. He also enjoys a reputation for being an educa- tor on cocktail creation and bar economics, helping bar owners maximise their profit margins using his products. that would instantly appeal to the market and sell. Asked why he follows trends rather than creating new ones, Gavin said, “The way we stay current is by observing indus- try trends and applying them at a manu- facturing level. Being small allows us to stay closely connected to our reps and respond to the market quickly.” The size advantage gives Steinbok a distinct edge over the major players. “We know we can’t compete with the multinationals and the liquor industry is full of giants, but as big multi- tiered companies, they are inherently slow. Even during COVID, we can make flavours desired by the market within a month. The big players can’t do that. We know what we are, and we know what we’re not. Our flex- ibility is key,” said Gavin. Persistence is another hallmark of a true entrepreneur and Gavin has shown this quality in abundance, particularly in terms of getting into the off-premise market, which is dominated by Coles (Liquorland, First Choice and Vintage Cellars) and Woolworths (BWS, Dan Murphy’s and Woolies Liquor). Gavin worked on progress- ing his relationship with Coles for seventeen long years before they finally agreed to take him on for small batch supply in January. “That was seventeen years’ worth of eating humble pie and almost giving up but pushing on,” he said. In June, Gavin received word from Coles that his Peach and Butterscotch Schnapps ranges would be offered for purchase in-store at all stores Spurred by the success of the shot glass and wanting to compete in the retail realm, Gavin designed and released his first 700ml bottle of Steinbok Schnapps. This was soon followed by a range of new liqueur prod- ucts, including alcopops and new schnapps flavour profiles. In 2002, Norm sold the jam business and retired, handing over the reins to his son. “I was 32 and thought I knew it all. Having the ideas is one thing but hav- ing the fortitude to run the company is very different to being second in charge,” said Gavin. Without the security of a regular wage and knowing how cash hungry a business is when in growth mode, the fac- tory Gavin and Norm had built on land in Somersby in 1995 became home for the next two years. He had one staff member at the time, an electrician, who is still with him today. Like any true entrepreneur, Gavin has always had a strong sense of the needs and wants of consumers while simultaneously knowing how to find a place in the market where the competition is weak. He knew that, unlike most other alcoholic products that are ordered by brand, schnapps is ordered by flavour. This allowed him to fol- low the latest trends and create products By Phaedra Pym “We know what we are, and we know what we’re not. Our flexibility is key.” CENTRAL COAST BUSINESS REVIEW OCTOBER 2021