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Our Strategy

OUR PRIORITIES FOR GROWTH

ARE BUILT UPON A STRONG FOUNDATION

PREMIUMISATION

Ensuring brand equity is increased; driven by clear brand marketing strategies and positioning of our brands that enables us to command higher price positions.

Aim:  

 30% of Group revenue to come from premium brands

How:  

Whisky strategy
New Product Development (NPD) process
World-class brand partners

A solid foundation forged from:
 

Strong governance

  • Compliance
  • Ethics
  • Transparency

MILLENNIALS

Increased awareness of and focus on this valuable segment of consumers.

Aim:  

 Attract internationally-minded consumers to our local brands.

How:  

Marketing insight investment
Provenance of local brands
High Potential (HIPO) management pipeline

A solid foundation formed from:
 

Engaged people

  • Empowerment
  • Talent management
  • Line of sight

DIGITAL

Using digital marketing to underpin brand execution and to engage and keep pace with consumer habits.

Aim:  

 Regularly communicating with 75% of targeted consumers through digital channels

How:  

Combined IT/digital strategy
Common digital marketing architecture
Digitalised processes

A solid foundation forged from:
 

Focused resources

  • Sales and operational planning (S&OP) process
  • Insight-driven
  • Strategic planning

M&A

Looking at larger, more strategic opportunities to deliver growth and shareholder value for the future.

Aim:  

 Consider larger value creating M&A opportunities

How:  

Cost and growth synergies
Brand portfolio enhancement
Geographic expansion
Strategic move

A solid foundation forged from:
 

Small company agility

  • Flat structures
  • Devolved responsibility
  • Speed

LOOKING OUT

TO 2020 AND BEYOND

Early in 2018 we reiterated the strategy which would enable Stock Spirits to deliver sustainable and valuable growth across its existing operations and beyond.

The strategy can be summarised as driven by four pillars based upon a solid foundation of values, people and resources.

Our Business Model

HOW WE

CREATE VALUE

bm source

WE SOURCE

  • Centrally managed but local sourcing departments in Poland and Czech
  • Primarily use local suppliers for raw materials as much as possible
  • Strong local supplier relationships ensuring we get priority during difficult times and shortages
  • Security from longer-term contracts
bm manufacture

WE MANUFACTURE

  • Distilleries in Baltic, Czech and Italy; and two bottling plants in Poland and Czech
  • Local brand portfolios with our spirits produced in local markets – for Poland and Czech, 99% of owned brands sold in the markets are made locally
  • High level of governance, with health and safety and environment a focus across all facilities – recent ISO accreditation across all of our production sites, be it distilleries or bottling plants
bm market

WE MARKET

  • Portfolio of trusted local brands with provenance at all price points: economy up to super-premium
  • Local marketing teams work with and develop local, trusted, strong brands as a result of being close to their consumers
  • Quick to market development of new products/brand variants
  • Extensive utilisation of digital marketing platforms
  • Local market brand teams work directly alongside local commercial sales teams
bm sell

WE SELL

  • Sell direct to off-trade (larger supermarkets and wholesalers); wholesalers then sell to traditional trade/local shops or to on-trade (bars, restaurants and hotels)
  • Close relationships with our customers
  • Minimal exposure to duty-free

OFF-TRADE

  • Prime focus of our markets, and a position of strength/competitive advantage in Poland and Czech especially

ON-TRADE

  • Lesser reliance overall, only c.15% of Group annual revenue

OUR BUSINESS MODEL IS UNDERPINNED BY OUR

STRATEGIC FRAMEWORK

A RESPONSIBLE APPROACH TO ENVIRONMENTAL AND SOCIAL GOVERNANCE

CLEAR STRATEGY

ROBUST RISK MANAGEMENT

EMBEDDED VALUES AND ENGAGED, AGILE CULTURE

SOUND GOVERNANCE

TO SEE MORE DETAIL ON WHERE WE OPERATE IN CENTRAL AND EASTERN EUROPE