The company tries to concentrate purchases as much as possible on the domestic market to maintain the stamp of local production in craft distilling. The idea of supporting localism will be passed on to licensed distilleries to deliver on the brand promise. In terms of purchases, the company will work with wine importers, among others, who offer exciting batches to realise new types of distillates (e.g., Muru Wines).
The company has sourced distillery technology from the Netherlands. State-of-the-art remotely controlled iStill distillers support the internationalisation strategy by enabling recipe portability. The exact recipe developed at the company's distillery in Mäntsälä can be transferred to any iStill distiller in the world at the touch of a button, making it possible to distil beverages with the same recipe anywhere in the world in a way that is significantly simpler than traditional distillation technology.
The company's main distribution channels are the main alcohol stores and Alko. The distribution channels will be expanded market-by-market based on a franchise model and demand driven by competitive success. The company aims to have a comprehensive distribution network capable of delivering beverages to brand-conscious consumers wherever and whenever they are.
Modern iStill production technology ensures consistent quality and taste. The technology allows the same recipe to produce the same result in another production facility. This requires suitable water, raw materials and production training. At current production volumes, bottling, fermentation and raw material sourcing are done with craft spirit and authoring skills.
The company's current production capacity is sufficient to meet the local market's demand. However, as the company moves into larger markets, it plans to manage production locally through a licensing model; see the section on franchising and licensing.
Storage and logistics
Currently, the company stores finished products in a tax-exempt warehouse in Mäntsälä, Finland, which houses the company's finished product warehouse and the barrel maturation of rum. The company's finished product warehouse is currently worth around €100,000. As rum production grows, it will become necessary to expand the storage capacity.
It does not make sense to transport glass and finished beverages from Finland to the rest of the world. Instead, the company aims to manufacture Readers' products close to the consumer through licensed manufacturers thus taking into account ecology and sustainability. Domestically, the company will use logistics partnerships with local hauliers and alcohol wholesalers.
The company says it will leverage insightful marketing driven by content and a renowned community of authors. Instead of expensive advertising, the aim is to use earned media to engage consumers in the story. These include small booklets and podcasts. Personal interviews with co-authors, where they talk about their books, lives and distillery, are also effective outlets. Similarly, marketing events in partnership with publishers, book launches and author tours in a restaurant setting are excellent places to showcase Authors' Distillery distillers.
Distillery master Ari Kaura's visionary product development has been measured and rewarded in the world's toughest spirits competition. In product development, gin currently represents the immediate consumption and seasonal line, while rum represents the barrel sales, vintage and shelf lifeline. The company also has other spirits on the drawing board, such as a gin-based tentacle for the grocery trade.
Franchising and licensing
The company does not believe it is profitable to export alcohol produced in Finland on a large scale through paid marketing. Therefore, the company's objective is to build a brand concept for a writers' distillery in the format of a localisation model for TV series (e.g., Want to be a millionaire, over 160 countries).
The company will select a suitable distillery in each language area, either committed to the iStill distillation process or set up there, that wishes to localise the distillery through local authors' stars and publishers. Local flagship authors will be offered the opportunity to become owners of the land-based company, and Authors' Distillery may also choose to become a minority owner of the land-based company.
The franchise agreement gives the local licensee full access to Authors' Distillery's business concept: brands, recipes, distilling training, approach to engaging local authors, trademarks, visual identity and marketing concept, for which it pays a revenue-linked license fee of 8-10%.
The company aims to launch a licensing model in Sweden in 2023. CEO Anne Pekkanen has strong networks in Sweden and other nearby markets in the hotel and restaurant sector. In addition, the distillery's management team has extensive contacts in the international author and publisher scene.
The company estimates that after 1-2 successful localisations, global brand awareness will expand and open up an exit prospect into the international spirit's market.