Mick Spencer – co-founder of Gravity Seltzer – joins us for an interview after ranging in major Australian beverage retailer, First Choice Liquor.
In a market teeming with competition, Mick Spencer – the co-founder of Gravity Seltzer – reveals how his young brand has leveraged the ‘better for you’ movement and set itself apart from existing players in the seltzer category.
An important and controversial decision in seltzer production is whether to brew or use a spirit. Gravity chooses the former and emphasises the use of all-natural Australian ingredients. Doing so has rapidly gained attention and partnerships with prominent athletes.
Mick discusses the organic reach facilitated by these partnerships, the role of sustainability in securing major retail deal and much more.
Seltzer has been incredibly competitive – with a huge number of brands fighting for a market dominated by the two largest two – why did you decide to start a seltzer company and what makes you different?
I have always been quite entrepreneurial, and I am always looking for a gap in the market. In our research, my co-founder Liam and I noticed that there was a huge decline in numbers when it came to Aussies consuming the “big three” that have dominated for years. That being beer, wine and spirits. We could also see from US trends that Seltzer sales were skyrocketing, because more consumers are interested in drinks that have under 130 calories. This suggested to us that more people were being mindful of their sugar and alcohol consumption, and there is an opportunity in this space for us.
Our brand, Gravity, aims to take over the “better for your” drinking category. While we started with seltzer, we will be revealing different styles of “better for you” beverages very soon.
As for our seltzer, our point of difference is that it is brewed like a beer, so it has a nod to a beer style to it. It uses all-natural Australian ingredients and has some unique flavour profiles.
Gravity Seltzer has kicked some goals with a really short record, having only launched last summer. How do you stand out and attract the attention of customers in such a competitive market with a limited history? And how does this same recipe translate to attracting sportspeople like Matt Poole, Cooper Chapman and Harley Clifford to become co-owners?
I truly believe that the organic reach we have achieved through the athletes we have partnered with has drawn a lot of attention for us. They all embody active lifestyles, and as the Gravity message is all about “rethinking your drinking habits” and “Exploring More”, we couldn’t have gotten better people on board to embody that message.
Additionally, I literally spent 9 months travelling Australia with my wife and one-year-old son in a Gravity Seltzer van showing up to venues and bottle shops to get Gravity Seltzer noticed. That certainly added to the hype and attention.
You recently landed a deal with First Choice Liquor (Coles) – what tips do you have for brands looking to crack major retail?
The key to that is to understand that the retailer is the customer first. Your customer is also important, but through your retailer, you will be able to get brand awareness due to being on the shelf, and you will be getting bigger orders in one go.
The key to landing the big retailers is to understand their needs, what they care about and how they would position your product if it were in their store.
With First Choice Liquor, we know that sustainability is important to them, it is also important to us. Therefore we presented an idea where they could exclusively sell our Gravity Seltzer Mixed Packs, and then we would plant a tree on their behalf for every pack sold. This really appealed to them and that is a big reason why we got in the door… aside from our product being really good of course!
What are you learning about or exploring at the moment – where are those pockets of information that you find intriguing and why are you choosing to explore that?
Our interest is in the ‘Better For You’ segment of alcoholic beverages. We know from data, sales and searches that customers now, especially the younger ones, want a product that tastes fantastic and is flavour-forward but has less sugar and is under 130 calories.
There is a big shift to the lighter RTD market, and Gravity Seltzer will be playing in that space. There is huge potential for growth here.
Can you talk me through your process of ideating and then entertaining new product ideas?
We are constantly looking at trends online both globally and locally. We check what people are searching for on Google, what they are talking about online and what they are posting on social media.
We also work with our brewers and advisors to see what flavours are trending, and that influences the flavours that we use. We then talk to the customers in-store, on social media and online, and they speak to our retailers who are often 6-12 months ahead of the trends.
We also visit the US as often as we can, as they are usually 2-4 years ahead of the trends than Australia is. For example, if a drink style or a new berry flavour is trending there now, you can almost. Guarantee it will be huge in Australia in 1-2 years.
Where do you look for inspiration? Are there specific brands, projects, people or products that you draw inspiration from?
From a brand perspective, I get my inspiration from great Aussie brands such as Balter and Stone & Wood. From a lifestyle perspective, I seek inspiration from red Bull, Surf and Fashion Brands as there are so many that capture the lifestyle around their brand so well.
From a product perspective, I look to notable US brands such as High Noon.
What resources do you absorb to stay ahead of the curve in the Australian beverage alcohol industry?
Travelling to the US and utilising insights into what is trending over there is a huge one for us. We also love Australian food magazines and blogs. We like to look at what cuisines are trending, and what drinks are being paired with what meals in restaurants. For example, if Mexican is trending, looking into a lighter Margarita-style drink option would make sense, whereas when Burger restaurants are trending, we would look into options that would compliment being paired with a burger.
What needs more attention in the beverage alcohol industry – or seltzer specifically – and how can that be done?
More education needs to be released about the Seltzer category in general, as lots of Aussies don’t understand it yet. We are starting to grasp the concept of “Hard” ie. Hard Seltzer and Hard Lemonade, but many people are still in the dark when it comes to Seltzer.
I also think that there should be a split in the pre-mix RTD category. For example, the Light RTD category, where seltzer falls, would grow exponentially if it were categorised that way as more drinkers are looking for options that are low in sugar and have less than 130 calories. Then you would have a Middle RTD which would have the likes of -196, and then the high RTD category would be the more sugary UDLs and dark spirits.
If the RTD category was broken up this way, I would guarantee the light section would take off even more than it already has.
Who would you like to read an article with and what would you like to ask them?
I would like to meet Anthony Von Mandl, who founded White Claw and Mike’s Hard Lemonade. He is the man who essentially created the global seltzer industry.
I would also him what insights he had, and what inspired him to create seltzer and how did he make people aware of it.
