Vodka trio tackles Chinese fragrance market

A few years ago they were marketing New Zealand vodka to the world. Now former 42 Below owners Stephen Sinclair, Grant Baker and Geoff Ross are back in China, this time selling fragrances.

The trio’s investment vehicle The Business Bakery has announced a major foray into the Chinese mainland through its investment in Ecoya.

The Bakery has a controlling interest in Ecoya, a business founded in Australia that produces home fragrance and body care products using only natural bases and the finest fragrance and essential oils.

Ecoya products are sold in quality department stores and smaller specialty shops but now, in a joint venture with a local Chinese company, Ecoya has opened its first-ever dedicated store in the wealthy Gubei district of Shanghai.

Ross says it’s the first of several branded ‘flagship’ shops planned in global markets.

“Our joint venture partner has plans to open more stores in China. This first store is for consumer sales and to act as a showcase for other potential distributors from other regions.

Then we are looking to extend beyond China in the medium term,” Ross says.

“Ecoya candles and products could not be more environmentally friendly and China responds very well to the environmental and Australasian stories the brand relates,” Ross says. “We have set ourselves some aggressive targets in the past and it’s pleasing to say we have achieved them.

“We plan to do the same with our global expansion.”

The Ecoya investment has proved a huge success with the brand’s monthly sales increasing eight-fold since The Business Bakery became involved in early 2008, Ross says.

The Bakery’s first investment was in local mobile marketing company The Hyperfactory. A stake in The Hyperfactory was sold to an American publishing giant in July in terms Ross describes as very favourable for The Bakery.

Ecoya was The Bakery’s second investment and recently it announced the purchase of a 19 per cent stake in Dorchester Finance.

In addition to Ecoya’s renowned soy-based candles, the boutique-sized Shanghai store also stocks Ecoya fragrant body lotions, shower gels, soaps and other fragrances for bath and home.

The Business Bakery is a limited liability partnership established by the former 42 Below entrepreneurs. The balance of the equity in Ecoya is held by the company founder and CEO Craig Schweighoffer.

Geoff Ross says Ecoya has had enquiries from the UAE and European markets. It has plans to enter the west coast of the US in 2010 where key Ross, Baker and Sinclair have a previous network from their 42 Below days.

Shanghai is an important tourist destination in China and is home to more than 20 million people. It is China’s biggest city and is the mainland’s biggest commercial and financial centre.