Australian whisky brand The Ben Buckler has announced that Robert Herjavec, the globally renowned entrepreneur, investor and Shark Tank personality has invested in the business through a Simple Agreement for Future Equity, (SAFE).

A SAFE, enables investors to provide funding to a company now in exchange for shares at a later date, usually when the business completes a future funding round. It is not a loan, so there are generally no interest payments or fixed repayment date. Instead, the amount invested converts into equity based on agreed terms, which may give the investor a discount or set a maximum company valuation for calculating their shareholding.

The investment marks a significant step in The Ben Buckler Whisky Company’s plans to build a leading Australian spirits brand and expand into international markets.

CEO and Co-Founder Kristy Bloomfield told The Shout that ‘speed and alignment’ were two of the reasons why the company went with a SAFE structure rather than a traditional equity raise.

“A SAFE lets us bring in the right partner now without forcing a premature valuation conversation while the business is still compounding its growth curve,” she said. “At this stage, that’s the more honest structure for everyone.”

The next generation

Bloomfield has previously explained to The Shout, the plans to build an aspirational brand, which was one of the factors that drew Herjavec to The Ben Buckler over other spirits brands.

In explaining why Herjavec invested, Bloomfield said: “I think it was the combination of strong proof points: 10,000 bottles already sold or sampled in market, genuine D2C economics, and distribution into GTR, retail and venues of influence.

“We are hyper-focused on recruiting the next generation, and bringing more users into the category, but most importantly we have designed a highly aspirational brand platform, built to play to any market, occasion, and individual, and we know this separates us from other brands that are purely product led.”

In terms of what Herjavec will bring to the table, she added: “He’s built and scaled consumer businesses across North America for decades, and North America is exactly where we intend to compete long-term. His network, his instincts on brand and retail partnerships, and his ability to stress-test our thinking will matter more than the cheque itself.

“Robert’s mentoring will be invaluable and we are very grateful, and will work tremendously hard for him and our investors, to build a high performing team and highly equitable business/brand.”

A more powerful partnership

Along with Bloomfield, The Ben Buckler was founded by TV personality Larry Emdur, who told The Shout, the team did not specifically seek out Herjavec as an investor.

“This happened all very organically, which makes it an even deeper and more powerful partnership,” he said.

“It wasn’t a Shark Tank style pitch or anything like that, it was more like a couple of mates enjoying an occasional whisky. Once Kristy came on board and shared her mind-boggling vision for the brand, its strategic growth and global opportunities he was quick to lock in.”

And when asked if he thought Herjavec was buying into the whisky, the brand or the founding team, Emdur said: “Honestly, all three, but the team is what makes the other two believable. Anyone can taste that the liquid is excellent, the medals back that up. But product alone doesn’t build a company.

“What makes this investable is our ability to reach with cultural relevance, combined with a leadership team that’s built and scaled beverage brands before. Robert invests in people who’ve proven they can execute, and that will work tirelessly to achieve the ambition.”

He added: “Robert’s presence is a validation that the vision of building Australia’s next big spirit brand is credible, not just aspirational. But our growth philosophy hasn’t changed: we still believe in earning frequency before chasing penetration.

“His backing gives us more conviction to stay disciplined, but his presence alone provides a real superpower to the team.”

Frequency over penetration

The strategy for The Ben Buckler is described as being “intentionally measured” and focused on “frequency rather than penetration”.

Bloomfield explained that strategy to The Shout: “It means we’d rather have a smaller number of highly influential venues and retailers pouring Ben Buckler consistently, building real repeat purchase and loyalty, than blanket the market and hope for occasional trial.

“In practice, that means we invest in the experience at point of sale, and we measure success by how often a consumer comes back, not how many shelves we’re technically on. Depth of relationship beats breadth of distribution, especially in the early years.”

The company said Herjavec’s involvement provided more than additional capital, describing it as an endorsement of Ben Buckler’s brand, premium product, commercial potential and capacity for further growth.

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