Stolen Rum raises $4m private capital to fund global growth

Stolen Rum raises extra $4m private capital to fund global growth

Rob Campbell and Christina Domecq join company

Auckland, New Zealand 13 September, 2013: Stolen, the fast-growing New Zealand based premium spirits brand, is set to dramatically increase its international presence after completing an additional $4m (NZD) private capital raising this week.

The extra money has been raised from investors in the UK, Canada, Australia, China and New Zealand and CEO Jamie Duff says the response from the private market has been exceptional.

"We were advised that it's very tough right now to raise private money. However, positive response from the market and speed at which we've been able to secure funding reinforces the strong position we are in as a young, ambitious growth company. We have closed our funding efforts on time and over subscribed," says Duff.

The fund-raising follows the appointment of commercial directors Rob Campbell and Christina Domecq to the board of Stolen Rum, following on from the appointment of Kyle Melnyk as Chief Financial Officer in April.

Board chairman, Rob Campbell, says the latest funding round values the company at $18m (NZD) after the new money is taken in, showing a substantial lift from initial fundraising.

"The cost of this quick round of funding has been very low at less than one per cent of capital raised, making it an exceptionally low cost and attractive way to raise new funds for growth.

"Included in our pitch to potential investors were some exciting and well-developed plans for international growth off a strong base and a cash positive position in the New Zealand market," says Campbell.

This funding round is the latest in a series of private investment rounds which started in 2010 when the company was launched with help from family and friends.

Sales volumes for Stolen Rum since launch in 2010 have grown exponentially each year and show no signs of slowing with 178 per cent uplift in 2012 case sales from the previous year.

With regards to international growth plans Duff will only say that plans are very well developed and to expect "significant announcements" in the coming weeks and months, and that it was too early for the company to reveal new market plans publicly.

Duff said the company's business model was highly attractive to investors because of its high scalability and attractive margins. He also expects to be cash positive in other international target markets within three years.

Stolen’s disruptive marketing activities and contemporary brand was also an attraction for investors Duff says. "Investors like that we've created a unique proposition in a market with little differentiation. Investors can see the rapid growth potential in the rum market when combined with product innovation, our scalable business model and international growth plans.

Duff says future  investment rounds would be required to back the growth of Stolen into additional markets and that private funding was an attractive option given its low cost and the company's attractiveness to date.

"The funding we require is effectively initial working capital in each new market, so it is inherently incremental as the business grows. Growth is our agenda so as we continue to deliver on our growth milestones, we will go back to the market and seek new investment," he says.

Alongside new market growth plans, Stolen has been researching and innovating to develop world-first products and contemporary flavours. Again Duff wouldn't budge on what these would be other than to say "expect irreverent contemporary and unique new products."

Duff said the earlier appointment of CFO Kyle Melnyk and more recently the commercial directors had given the company a substantial lift in both financial discipline and rigour as well as an ability to draw on additional commercial expertise and significant financial, marketing and drinks industry contacts.

Rob Cambell has over two decades experience in investment management and corporate governance and is chairman of Guinness Peat Group and Summerset Group and Tourism Holdings . Rob is also on the board of Turners & Growers, Call Plus, and  Precinct Properties . He is a board or advisory board member of several private equity and hedge funds and he leads Stolen’s  governance and funding strategy.

Christina Domecq  is part of the famous Spanish wine and spirits dynasty established by Pedro Domecq that produced brandy and sherry until 1994 when the family was bought out and became part of the UK-based Allied Domecq. Christina has extensive contacts throughout the global liquor industry and experience in negotiating and managing global licensing and distribution agreements. In 2008 she was awarded the prestigious Ernst & Young UK Entrepreneur of the Year. For Stolen Christina will focus on the business growth strategy with a focus on international markets.

Kyle Melnyk joined Stolen  as CFO after a fifteen year career in the advertising industry. The last decade was with Omnicom owned Clemenger Group, during which time he oversaw a number of companies but principally as the finance director for Colenso BBDO in Auckland. Kyle has been an active shareholder in Stolen  since early fundraising rounds and spent a number of years prior to the advertising industry as a chartered accountant for Price Waterhouse in both Canada and New Zealand.

About Stolen
Launched in 2010, founders Jamie Duff and Roger Holmes committed themselves to creating a unique range of products that weren’t held hostage by mainstream rum philosophies. Growing tired of the ‘pirates and palm trees’ approach to rum positioning, they hit the market with an edgy and combative mantra to be different.

In 2011 Stolen Rum signed a distribution agreement with Beam New Zealand, which at the time was an unprecedented partnership for a company of Stolen Rum’s size.

Stolen Gold and Stolen White were awarded Gold medals in the San Francisco World Spirits Competition in 2010 and 2011 and are matured in individually chosen charred oak barrels from Trinidad. Stolen Dark (launched last year for the large NZ dark rum consumer base) won a gold medal at the San Francisco World Spirits Competition this year.

Stolen Dark, White and Gold are all available throughout New Zealand.

ENDS

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