Stu Gregor co-founder of world beating gin success story Four Pillars Gin talks life before, during and after selling the business

Show Notes

@Stu Gregor

Stu and his @fourpillarsgin co-founders recently sold the last 50% of their business to Vanguard Luxury Brands, the Lion-owned distribution business. Four Pillars is an Australian success story. 

Stu's has a lengthy background in food, wine, hospitality and travel. His other business and personal experiences include;

• Founding  @LiquidIdeas in 2013 - Australia's leading communications agency for food, drink, travel and lifestyle brands
• Co-owning of luxury travel business Gregor & Lewis Bespoke Travel
• President of the Australian Distillers Association (2014-current)
• Director RUOK Day and OzHarvest for nine years
• Former panellist on ABC's Gruen and regular media commentator
• Masters in Marketing from the Melbourne Business School
• Diploma in Wine Marketing from Adelaide University
• Graduate of the AICD.
• Has a daughter, a son, a wife and a passion for every sport imaginable.

We discuss;

• starting a business,
• going through an exit
• contemplating life after that business
• the power and importance of marketing
• the value of external counsel in important business decisions
• how to prepare for a business exit and ensure a smooth transition when the time comes to move on
• the importance of passion in small business - learn how to harness your enthusiasm and drive to create a thriving and fulfilling venture.

Stu opens up about the emotional aspect of selling a business, the need for a strong plan for what comes next and debunks a some myths. 

Myth #1: Exiting a business means you've made it and can retire happily. 

Myth #2: Life after a business exit is all relaxation and no challenges. 

Myth #3: The traditional concept of work-life balance 

Timestamped summary of this episode:
00:00:01 - Introduction 
Stu Gregor is the guest on the Small Business Banter Podcast. He discusses his recent sale of Four Pillars gin and his role as co-founder of Liquid Ideas.

00:02:16 - Background and Experience 
Stu shares his journey from journalism to the wine industry and eventually founding Liquid Ideas, a communications agency. He highlights the value of being both an advisor and a doer in business.

00:07:08 - Lessons Learned from Four Pillars 
Stu reflects on his experience with Four Pillars gin and the lessons he learned as he built the brand. He acknowledges the value of lived experience and how it enhances his advisory role.

00:09:09 - Transition and Future Plans 
Stu discusses the challenges of transitioning out of Four Pillars and the conflicting advice he receives about what to do next. He expresses his energy and excitement for new ventures and ideas.

00:10:45 - Uncertainty and Possibilities 
Stu shares his current state of uncertainty and the various ideas he has for his future endeavors. He highlights his desire for change and the constant generation of new possibilities.

00:15:13 - The Role of the Ex Co-founder 
Stu Gregor discusses his role as the ex co-founder of Four Pillars and compares it to being a loose player in the back line in the AFL. He highlights the freedom he had to roam and go where he pleased, without an official role.

00:18:29 - The Genesis of Four Pillars 
Stu shares the story of how Four Pillars started in the back of a friend's shed in the Yarra Valley. He explains how they raised money from 20 investors and focused on building the best gin distillery business, without initially considering an exit plan.

00:21:18 - Building Something Worthy of Attention 
Stu emphasizes the importance of building something successful before considering an exit plan. He cautions against starting a business with the sole intention of getting out, and highlights the need to be all in and passionate about what you're building.

00:23:35 - Timing and Luck 
Stu acknowledges the role of timing and luck in the success of Four Pillars. He mentions that they entered the gin industry at a time when there were fewer competitors, giving them an early mover advantage. He also highlights the need for a world-class product to stand out in a crowded market.

00:26:04 - Expertise and Industry Knowledge 
Stu emphasizes the importance of expertise and industry knowledge, citing their combined 50 years of experience in the drinks industry as a major advantage. He advises aspiring entrepreneurs to assess

00:31:37 - The Beginning of Four Pillars Gin 
The guest talks about how Four Pillars Gin started gaining recognition, winning awards, and expanding its distribution. They emphasize the importance of not just having a great product, but also marketing and selling it effectively.

00:32:57 - Building a Business 
The guest explains that their goal was to create a viable business that would employ many people and contribute to the development of the gin category. They reflect on their success in creating unique gin flavors and establishing themselves as a leading brand in Australia.

00:34:21 - Attracting Attention 
The guest shares that larger spirits companies, like Diageo, started taking notice of Four Pillars Gin's success. They had meetings with representatives of these companies, who expressed interest and admiration for their brand. This sparked the guest's curiosity about potential opportunities for the business.

00:37:02 - Seeking Advice 
The guest realizes the need for external advice and engages the services of Canterbury Partners, an advisory firm specializing in mergers and acquisitions. They stress the importance of getting expert guidance in navigating the complex process of potential acquisition or investment.

00:40:58 - Getting Expert Counsel 
The guest emphasizes the value of having external counsel during negotiations with potential buyers. They believe that having a third party advocate for your interests can help maintain a positive relationship with the buyer and prevent conflicts that may arise during the negotiation process.

00:46:55 - Building a Strong Relationship with the Buyer 
The guest discusses the ups and downs of the deal but emphasizes the importance of having a strong relationship with the buyer, which provides comfort and allows for continued investment in the business processes.

00:47:30 - Challenges and Distractions in 2019 
The guest shares that finalizing the deal in 2019 was a stressful process as it required a lot of time and expertise. They also mention their decision to sell only 50% of the business and work on unfinished projects.

00:49:13 - Navigating the Challenges of 2020 
The guest discusses the impact of the pandemic on their business, with international markets and on-premise markets closing down. They had to adapt by selling gin online, delivering cocktails, and even making hand sanitizer.

00:51:23 - Negotiating the Second Tranche of the Sale 
The guest talks about how the pandemic affected the mechanics of the second tranche of the sale and the need to renegotiate the terms. It took several months to reach an agreed price that would benefit both parties.

00:54:57 - The Importance of Building a Brand 
The guest emphasizes that a brand is the most valuable asset in the industry. Buyers are not just interested in physical assets but also in the brand's customer loyalty, awareness, and love. Building a brand can differentiate a business and make it more attractive for sale.

01:04:02 - The Challenges of Small Business 
Stu emphasizes that starting and running a small business is challenging but incredibly satisfying. He encourages people to pursue their passions and find work that stimulates and fulfills them.

01:05:21 - Work-Life Balance and Personal Growth 
Stu discusses the concept of work-life balance and suggests that if work is enjoyable and fulfilling, the need for balance diminishes. He shares how his experiences in small business have helped him grow as a person and become a better human.

01:06:30 - The Relentless Slog of Small Business 
Stu acknowledges that running a small business is a relentless and challenging journey. However, he highlights that the hard work can be highly gratifying and invigorating, especially if you are passionate about what you do.

01:07:17 - Leaving with Grace and Planning for the Future 
Stu advises that when the time comes to exit a small business, it's important to do so gracefully and not criticize or undermine those who take over. He also emphasizes the need to have a plan for what comes next to maintain a sense of purpose and fulfillment.

01:08:21 - Reaching Out to Stu 
Stu shares that anyone interested in connecting with him can reach out to him on LinkedIn. He thanks Michael for the conversation and expresses his enjoyment.