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Home / Business

Shy of publicity but up for a fight

Simon Hendery
11 Nov, 2005 10:37 AM3 mins to read

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The phone call came as a surprise.

"It's Michael Erceg speaking," said the business-like voice.

I had left a message with Erceg's PA at Independent Liquor and after some digging found an email address for the liquor baron. I had no real expectation that the media-shy Erceg would answer my
mail, return the call or grant my request for an interview.

It was May 2003 and the Herald was following up liquor industry gossip that, in the face of a Government assault on one of its flagship ranges of spirit-based drinks, Independent was going on the war path.

In an initiative fronted by then Associate Health Minister Jim Anderton and intended to curb teenage binge drinking, the Government had just raised tax on drinks with an alcohol content above 14 per cent.

The buzz in liquor retail was that Erceg planned to fight back by cutting the mix in his light-spirits brews from a typical 23 per cent to a law-snubbing 13.9 per cent.

During that phone call, Erceg confirmed the move but made the surprising admission that he didn't expect the lighter-strength drinks to be profitable. He was simply making the move "to piss off Anderton".

His tone remained level throughout the conversation, despite explaining the imminent end of a line of products including the likes of Kristov 62 which, through clever selling, had made him millions of dollars.

"We believe the category is effectively dead," he said, making it clear he believed Anderton to be the political assassin.

"The man's a fool and it would be a mistake to let him think he can do what he wants in an industry such as alcoholic products without some mention being made of what we think of him. And this is just my way of recording it."

This fiery outburst was a rare instance of Erceg going on record.

As always, he declined to be photographed for the article and when it appeared on the front page of the Herald called to complain that the wrong slant had been put on his comments.

Business-like, he followed that call up with an email - not a complaint, more a jaded observation - that, almost as expected, the Herald had, for the sake of selling newspapers, grabbed the wrong end of the stick.

I disagree that the paper took the wrong angle or beat up the story. The issue of marketing alcohol to teenagers was at the time - and still is - one of significant debate.

Erceg's generally aloof stance with the media had parallels in other aspects of his business behaviour - he was a driven battler against the establishment.

A senior brewery executive told of an unnerving first meeting with Erceg. After the brewery man introduced himself, Erceg said words to the effect of: you seem like a nice guy, what are you doing working for those lowlifes?

That defiant attitude helped to make Erceg millions.

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