Pals co-founders Jay and Anna Reeve, Nick Marshall, Mat Croad. Photo / Supplied
Pals co-founders Jay and Anna Reeve, Nick Marshall, Mat Croad. Photo / Supplied
Kiwi RTD drinks firm Pals has partnered with global entertainment company Live Nation.
The three-year partnership will see the company supply drinks at major music festivals, concerts and tours, including at Spark Arena and Rhythm & Vines, and stage brand activations.
Auckland-based Pals, started by friends Mat Croad, Nick Marshalland Jay and Anna Reeve in 2019, is considered one of New Zealand's fastest-growing RTD brands.
Originally tripped up by Covid-19 and the subsequent lockdowns, the sales of Pals seltzers are now above pre-pandemic levels.
The private company is tight-lipped on its earnings, but it says its sales in New Zealand are up 65 per cent year on year, while sales across the Tasman in Australia are up 485 per cent.
Pals co-founder Mat Croad, 37, said Pals and Live Nation began working on the deal about 12 months ago. He would not disclose how much it was worth.
"There's a lot more to this than just can sales, it is about the brand alignment and for us aligning with a large-scale global leader - the blueprint this offers up to provide consumers some unique experiences they may not have seen before," Croad told the Herald.
"This partnership is not just about us selling product at these events, it's about how we can work together and utilise the assets that Live Nation have at their disposal.
"Now that we are a partner with Live Nation ... who knows what opportunities may arise."
Croad said Pals would use the partnership to get stuck into brand activations. "Part of the agreement is the allowance for Pals to put their creative stamp within these festivals."
Pals manufactures and cans its drinks in South Auckland and is gaining traction in new markets like Australia and the Pacific, including the Cook Islands.
Pals launched in Australia in October 2020 through an exclusive supply deal with Woolworths via Australia's largest liquor retailer, Endeavour Group, which holds about 55 per cent share of the market.
New Zealand and Australia remain the company's main focus for expansion at present.
It is exploring the possibility of expanding further afield, although it would not share which markets it was considering entering.
Pals was hopeful it would be selling into new markets within the next year, Croad said.
"It's a big wide world out there and there are plenty of markets that we deem tick all the boxes, but at this point, with the resource we have, we are making sure we have the right priority list and putting our time and efforts in the right places.
"We certainly are working through opportunities at the moment for different markets, but where that pans out and exactly where that may be at this point is a little bit unknown."
Photo / Supplied
Croad said Pals was in a "really healthy state" and its earnings forecasts had been met.
Over the past two years and as a result of various lockdowns, Pals has like most companies experienced its fair share of downturns and muted sales.
It has also been affected by rising business expenses as a result of freight costs.
"[Covid] has definitely put a strain within our supply chain network and has put a strain on internal business costs with rising inputs."
During the first national Covid-19 lockdown in the first quarter of 2020, sales for Pals virtually dried up for six weeks as liquor stores and hospitality venues were forced to shut.
"The Covid-inflicted periods we have seen lately are a lot less exaggerated - just a slight downturn in activity," said Croad.
"The business as a whole and across our key markets over the last year has been really strong, positive growth."
Six months ago Pals landed a long-term partnership with NZ Cricket, and is now the official RTD; served at all Black Caps and White Ferns cricket games nationwide. It has also partnered with NZ Ski, New Zealand's largest commercial ski field operator, supplying drinks at Mt Hutt, Coronet Peak and the Remarkables.
"We're really happy in this space we're in at the moment, we've seen really strong growth and continue to see that growth, and we believe that trajectory will hopefully continue with the resource and input we are putting in," said Croad.
"When this brand was launched, we always were very ambitious around what it could be, but the point it is now is beyond what we initially envisaged."
