VnC Cocktails taking off

Backed by a slick design, sales and marketing programme, VnC Cocktails is a company on the move. Just look at the numbers.
Over the past 20 months, VnC has increased production nearly five times from 55,000 cases to 250,000 and has sent product to nearly 20 countries. It already has forward orders of 250,000 cases for China and United States in 2011/12.
It has opened sales offices in Beijing, Shanghai and Hong Kong, and based on demand VnC hopes to hit a production milestone of 1 million cases by the end of 2012.
And all of these pre-made, ready-to-serve cocktails are coming out of the old Pinto juice plant in Maleme St, Tauranga.
Privately-owned VnC bought the factory in December 2009, spent nearly $800,000 upgrading it, and it is now the company's global manufacturing centre.
VnC is presently employing 31 people in its Tauranga plant to go with the 38 other sales, marketing and administration staff in Auckland and overseas - and it has plans to increase its Tauranga workforce by more than 60 per cent to 50 within three years.
In three fast and furious years, VnC has become an international brand and has particularly made strong inroads in the Australian, Chinese and British markets.
Its cocktails, natural fruit combined with quality vodka, are the preferred choice for the "Diamond" First Class section of Etihad Airways, which fly out of Abu Dhabi. And VnC is working hard on getting its cocktail range onboard two cruise ship lines - one of which calls into New Zealand ports.
"The ready-to-serve category has been recognised in its own right and the groundwork we've put in over the past two years - to be in front of the market - is paying off," said Andrew Walker, VnC executive chairman.
VnC took off after attending the Distill trade show in London in August 2009 and it recently signed a distribution agreement with Glasgow-based Whyte and Mackay.
"We had lots of conversation and we've been running down leads for the last 14 months," said Mr Walker.
VnC also entered the lucrative Chinese market two years ago and "it feels like we have nearly worked it out. It's a different culture and you have to spend time there face-to-face to build trust in the marketplace," Mr Walker said.
China at present accounts for 40 per cent of sales, and the cocktails in Asia are sold as on-premise products in clubs and bars.
Yet the bulk of the sales in United States, Britain and Europe are through off-premise liquor outlets. VnC has been careful about understanding the different markets.
"Take United States - you would never pour our cocktail in a Four Seasons Hotel because they have their own bartender making them. But our cocktail is served in the Four Seasons Hotel in Hong Kong because no-one there makes them," Mr Walker said.
Ninety-five per cent of VnC's production is exported, and the cocktails are also sold in Russia, Scandinavia, India, Singapore, Taiwan and through the Middle East in Lebanon, Qatar, Kuwait, and Bahrain.
In Australia, VnC has an arrangement with Woolworths to sell product through its liquor stores, Dan Murphy's and BWS, in Queensland and New South Wales. The cocktails will be launched nationally through the 700-store network in February.
The VnC directors are also having discussions about new business in South Africa. "That was one market not on our radar," said Mr Walker.
VnC is delighted to use Tauranga as its manufacturing centre, being close to the port and having a skilled workforce. "We are lucky to get our hands on the factory," said Mr Walker. "It has great bones and the manufacturing process is simple. We can do good things out of that plant."
VnC increased productivity by adding a new labelling machine, an automatic bottle washer and two steam tunnels to the Maleme St plant. The steam tunnels, which shrink the plastic labels on to the bottles, doubled production - and the factory now has a capacity of 1.2-1.5 million cases a year.
It turns out 10 different cocktails in 700ml PET (Polyethylene terephthalate) plastic bottles, and the most popular is Pacific Mai Tai, with a mixture of coconut, pineapple, lime juice and premium New Zealand vodka. The Mango Daiquiri and Passionfruit Caprioska has also been well received.
"It's the naturalness and convenience that counts," said Mr Walker.
"Our product uses natural products and still has a shelf life of 12 months.
"That's difficult to achieve and you can't shortcut the process."
VnC wants to extend its range to 12 flavours - one of them should be launched by the middle of next year - and it will be spending another $200,000 on equipment, takings its total investment in upgrading the Maleme St factory to $1 million.
As part of the product development, VnC is preparing to reduce its bottle weight from 70 grammes to 40g to reduce its "food miles" and meet overseas environmental standards.
The move was spurred by the prospect of increased business in Sweden. VnC has joined a tender process that demanded PET bottles should not only be recycled but can also be crushed.