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The Imagination Unlimited International logo symbolises the company’s commitment to the wine category |
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In the beginning: Lars and Beverly Johansson with Vincor’s Roger Provost back in 1998 |
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Conquering new Frontiers: Lars and Beverly Johansson and Roger Provost celebrate their crowning achievement of the ‘Frontier’ award for ‘Star Product of the Year’ in Cannes last year |
NORTH AMERICA. Effective 1 May, independent US duty free agency and distribution company Imagination Unlimited International (IUI) – the force behind the remarkable Inniskillin Icewine success story in duty free over the past decade – will be retained as the exclusive global duty free and travel retail agency of Inniskillin’s owner, the Vincor International group.
In order for IUI to develop the strong Vincor “˜new world’ wine portfolio in travel retail, the company – owned by Beverly Walker Johansson and Lars Johansson – will focus solely on these activities. To facilitate that global Vincor focus, IUI has decided to dissolve its spirits division.
In a joint statement this morning US time, Beverly Walker Johansson and Lars G Johansson announced that an agreement has been reached whereby fellow US independent duty free specialist agency company Haleybrooke International will acquire selected spirit brand agreements held globally by Imagination Unlimited International. Haleybrooke is owned by former Seagram Global Duty Free senior executive Patrick Nilson.
The trade name of Imagination Unlimited International will remain the property of Beverly Walker Johansson and Lars G Johansson. The sale is expected to be concluded sometime after this year’s IAADFS show.
Lars Johansson commented: “When Bev and I launched IUI in 1998, most of our brands were unknown brands in the global duty free arena. However, our portfolio comprised of brands showing “˜imagination’, which formed new categories and held a retail proposition that was outside the norm for our industry. To date, we have been successful – thanks to this strategy and the tremendous support from many key clients and brand owners alike. We are so humbled by the support our clients and the brands gave us.
“Bev and I had some tough decisions to make. Either we had to continue to expand our personnel strength in order to manage the growth of our brands, or to look for other alternatives. We are in the “˜brand building’ business, which requires tremendous resources and time. Our rapid growth stretched our resources to the maximum. It was indeed an honor when we learned of Haleybrooke International’s interest in IUI and our portfolio of spirit brands. Bev and I will be able to focus 100% on Inniskillin and the Vincor portfolio of international premium wines.”
Haleybrooke International President Patrick Nilson said: “We are very pleased to have reached this agreement with Bev and Lars for the acquisition of most of their respected brands which they single-handedly built in duty free.
“I have watched their business and portfolio grow over the years and they became the inspiration to form my own company, Haleybrooke International. The IUI brands are a nice fit and contribute to presenting a full range of wines and spirits.
“In addition, IUI and Haleybrooke will forge a strategic alliance in order to help grow our mutual business.”
The transfer of most of the agency agreements should be completed by May 1 2005, including the key duty free brands from Distilleria Bottega and the fine Armagnacs from Chabot and Sempé.
THE MOODIE REPORT BACKGROUNDER AND INTERVIEW
Imagination Unlimited International was founded in 1998 by former Allied Domecq executive Lars Johansson and his wife Beverly. In the intervening years the company has flourished and IUI was ranked recently by Generation’s Best n Most as number 14 in the industry’s top 100 houses, while Inniskillin topped the wines & Champagnes ranking by distribution.
Vincor, based in Canada, is the world’s 11th-largest wine group. Besides Inniskillin it also owns Amberley Estate in West Australia’s highly-rated Margaret River region and Goundrey Wines from the southern wine region of Western Australia; Kim Crawford Wines from the great Sauvignon Blanc country of New Zealand; Hawthorne Mountain Vineyards in British Columbia, Canada; the critically-acclaimed Jackson-Triggs of Canada; Sumac Ridge Estate Winery from Summerland, British Columbia, Canada; RH Phillips and Toasted Head Wines in California and Kumala from Cape Town, South Africa.
Vincor also has a joint venture with the Osoyoos Indian band in British Columbia, called Nk’Mip Cellars. This is North America’s first aboriginal-owned and operated winery.
Haleybrooke International is owned by Patrick Nilson, one of Seagram’s longest-serving and most respected duty free executives until the company sold off its spirits interests to Pernod Ricard and Diageo. The independent company’s portfolio currently includes; Ultimat Vodka, Louis Royer Cognac, Calvet Wines, Mandarin Napoleon liqueur, Mickey Finn’s Spiked Schnapps, Greenall’s Gins and Blavod (The Black Vodka) as well as other quality wines and spirits.
INTERVIEW
As the deal was revealed, The Moodie Report Publisher and Editor Martin Moodie spoke to Lars and Beverly Johansson in a highly personal insight into what has made this family firm such an industry success story and about what the future holds.
The Moodie Report: Lars, this is a landmark development after seven years of independence and of building one brand from scratch to an industry success story, later backed by a genuinely diverse spirits portfolio. Why the move and why now?
Lars Johansson: Back in 1998 when we first met with Vincor to discuss a five-year global strategy for Inniskillin I was very impressed with Roger Provost’s [Chief Marketing Officer] clear vision, strategy and commitment. He understood what it takes to build a brand and how to give the buyers what they needed; whereas, many brand owners wanting to break into duty free do not have this understanding. Roger was like a breath of fresh air. Like us, Vincor was born from an entrepreneurial spirit. Our dynamics were aligned and so we complemented each other.
We developed a five-year plan and we have achieved and exceeded that plan. Together Vincor and IUI share a vision, a history, and a success story. It made perfect sense to start discussing a long term vision with Vincor.
Over the last year we have discussed such a vision with Vincor. They were fully committed to their objectives and continued with a sharp focus on various markets. We are now about to launch and implement our long term plans. We feel fortunate to be part of Vincor’s plans. Vincor made us a long term, solid offer we simply could not refuse.
In order for us to deliver from our end, we had to make some changes and reorganise our priorities; it was indeed a tough decision, but the correct one in the end. We will be able to devote all our energy behind the Vincor portfolio of brands
You’re choosing to focus on wines – and specifically those of Vincor. Can you repeat the Inniskillin success story with the others?
We have proven that wines can be profitable in duty free given the correct strategy and approach, and that in many instances at higher profits then some popular premium spirits. Today, Inniskillin Icewine is competing with the premium scotch whiskies and Cognacs.
From the beginning we reviewed all known obstacles. Vincor listened and we took the concept to the best retailers, and soon had their support and commitment.
The clients need either differentiated products, products with a known name or a good concept. We will strive to deliver this for all our wines. The important thing is to listen to the client. Listen to their needs and objectives, then become a small part of their retail strategy, work in partnership, and provide the needed support resources.
Wine is growing, especially the wines of the “˜New World’. Our portfolio will have wines from all popular new world wine regions. Inniskillin Icewine will continue to be the highest priority; we still have a lot to do and a lot to follow through to complete.
Roger Provost is a superb strategist, the best we have ever worked with. In Roger’s new role as Vincor’s Chief Marketing Officer, we have the best support we could ask for. Vincor as a company has updated their long term commitment to us and to their brands in duty free.
Can we repeat the Inniskillin success story? We feel confident we can, if we are given such a mandate and the support. Inniskillin will spearhead as our flagship brand and we now have to look at the broader concept of the Vincor portfolio, the client’s needs, and what we can offer.
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Liquid gold: Inniskillin Icewine has fired the industry’s – and its founders’ – imagination |
Any regrets about leaving the spirits portfolio that you’ve built to someone else? And how did you come to talk to Patrick?
No regrets, but I shall miss the spirits sector. We put a lot of our heart and soul into building our brands. Although they were all unique, most of our spirits were unknown some years ago. For instance, we took Van Gogh vodka from nothing to the eighth-best distributed vodka in duty free. Brand building is like raising children. You work hard to help them grow and develop, so it is never easy to watch them go off into another direction.
We are going to miss working with our “˜Italian Stallion’, Sandro Bottega , creator of the beautiful Alexander Society Grappa works of art. Actually, Sandro himself is a work of art. I have never met a harder working, high-energetic personality. I guess I will miss our spirits division more than I thought”¦
The majority of brands will transfer over to Haleybrooke International and the President of Haleybrooke, Patrick Nilson, is indeed internationally known and respected in this industry. Patrick is as committed to brand building as we are so the brands he chose to take on shall continue on the path laid out and will prosper under his guidance.
Why Haleybrooke? IUI as a single entity represents our spirit brands in all areas throughout the world and in all segments of the industry from sea to land and in the diplomatic sector. To my knowledge, IUI and Haleybrooke are currently the only true global wine and spirit agencies in duty free. It was a simple assessment, largely due to Patrick’s commitment to brand building, his current international range of clients, and knowledge of the global business.
You’ve been an independent and proud of it. Is being part of Vincor going to cramp your style?
Vincor likes what we do and what we are delivering. We are not employees of Vincor. We are still IUI. We will remain independent and yet still be Vincor’s Duty Free and Travel Value “˜Division’. Again, Vincor does not think like other corporations. Vincor recognizes the fact that Bev and I bring sixty-something years of combined experience in duty free and it has always been appreciated. They allow us to run with the ball; therefore, our entrepreneurial skills are not diminished and the ability to jump and move on things swiftly remains intact. No style-cramping going on here.
How will IUI operate within the framework of Vincor?
As we do now. I see little change. As I said, IUI is an independent global sales and marketing arm for all the current and future Vincor brands – there’s more to come from the new world! To date, we have had nothing but Vincor’s support, hence Bev and I shall continue as is but with a more streamlined portfolio.
Bev, as Lars’ partner what do you think about all this? Are you going to see more of your husband – or less?
Martin, Martin, Martin”¦we are with each other nearly 24/7. As it is now we finish each other’s sentences. Together, and soon, we will be taking our “˜show’ out on the road, so our time together will now become the full 24/7. As a result I suppose we will begin communicating telepathically.
I will become more hands-on. When you start up a company someone has to be committed to overseeing the day-to-day administrative needs. I’ve been doing just that, and for a few years now. I started out as a graphic, industrial and architectural designer with a marketing background and flare for theater.
Do you know what happens over time when you bind a creative-hungry person with accounting, computer, and tax issues? It is not a pleasant sight. However, the good news is that this year I will be liberated from such company responsibilities and drudgery, allowing me to jump-start the imagination.
I am so keyed up and motivated at the idea of working more with Inniskillin and the Vincor new world wines. I also thoroughly enjoy working with the clients. They know their customers, they know their stores, and they know their needs. They just need to have their needs heard.
I also feel for our clients, having to deal with all of us characters in this industry. It can’t be easy having each supplier come in and ask for 75% of the retail space so the “˜image’ of their brand is maintained. I figured if you added up the entire linear feet/meters of retail space requested by each brand the store would end up being close to the size of Greenland.
Because I understand and sympathize with the challenges our clients face, I like to accommodate them, and work alongside them in order to reach new goals in an imaginative manner. The more the challenge, the more I enjoy discovering unexplored solutions.
So what’s the future for Imaginational Unlimited International?
Lars Johansson: Vincor has made a long-term commitment to us. We have made a long-term commitment to Vincor and their brands. It is open ended, so we hope to bring value to Vincor and be retained until we feel it’s time to transfer our roles and responsibility to Vincor.
Beverly Johansson: This is going to be an amazing ride. Being on the edge of a new frontier keeps your blood pumping, doesn’t it?
If you each had to choose one highlight – just one – of the past seven years. What would it be?
Lars Johansson: I can think of many highlights and achievements. What really comes to mind immediately is to be fortunate to have your life partner as also your business partner and to be able to work together.
Beverly Johansson: Wow. Lars, that was a good answer. I would have to say hearing Inniskillin’s name called out at the 2004 Frontier Awards dinner as the winner of the “˜Star Product of the Year’.
Actually, I didn’t hear Inniskillin’s name called. The manner in which the MC described the winner before announcing the name seemed as though he was describing a fragrance, not Inniskillin. I thought we lost. Period. Case closed. Then it all became surreal. I looked around and saw Harry Diehl, John Hoover, Jean-Michel Juin and Stuart Dryburgh in what seemed to be slow motion jumping out of their seats and yelling out to us that we had won.
Immediately seeing the expression on Roger’s and Lars’ faces was priceless. Afterwards, we each had these silly-looking smiles on our faces that stayed there for days. It was magical.
I know that I have the good fortune to have the best working partner also be my life partner. It’s really not necessary for me to speak this out loud. Lars knows it. After all, we have begun communicating telepathically, remember?
CONTACT DETAILS:
Patrick Gunnar Nilson – p.nilson@haleybrooke.com
Lars Johansson: Lars@IUIbrands.com
Beverly Walker Johansson: Bev@IUIbrands.com
