While Rhino Whisky founders decided to create a whisky that would not only highlight the plight of the rhino, they also wanted to give back to rhino conservation.
The business’s founders, who are two friends Gerrit Wagener and Brin Kushner, initially set their sites on launching in China as they had existing whisky business relations in that country and their long term business plans included producing and selling it from there.
The whisky is distilled in Scotland, and as the first shipment was about to ship out in December 2019, the Chinese buyers informed Wagener and Kushner about a new concern called the ‘Corona virus’ and advised that they would need to stall their order slightly.
The Rhino Whisky team thought it would be a three-month delay while the pandemic blew over so they promptly shipped all the stock to South Africa to manage warehousing costs as shipping was still relatively affordable at that stage.
Wagener, a whisky purist at heart, explained that as the severity of the pandemic increased, they had to adjust their whole business model and try to find alternative markets for the brand.
“It was never our intention to have Rhino in South Africa, but we were keen to start monetising the stock so we slowly started rolling it out locally. This was, of course, also a very difficult time for the liquor industry in South Africa as lockdown restrictions made it very hard for retailers to take on new brands but we knew we had a good product, so we persevered and reached out to our network,” Wagener said.
However, Rhino Whisky built a loyal community in a short period of time, and received positive reviews.
“We then started shipping from South Africa to open some new markets and we are now established in Canada and America and we are also currently taking on Europe. This is in addition to increasing our local distribution with a sophisticated sales force.”
In just two years, Rhino Whisky managed to not only entrench itself in the local market, but also successfully launch and grow its presence globally. Canada and America account for 30% of Rhino’s sales, and Europe is steadily growing.
Wagener said they believed Rhino’s success lies not only in the taste, but what the brand stood for, which is, driving awareness of Rhino poaching.
“We could discuss the harrowing figures of rhino poaching until we are blue in the face, however, Brin and I wanted to be a part of a solution and somehow raise awareness globally. We created a product with a purpose which resonates with consumers today.”
A fifth of Rhino Whisky profits were pledged towards the rehabilitation of baby rhinos orphaned due to their mothers being killed for their horns. The partnership with the Rhino Orphanage, a non-profit organisation based in Limpopo, the world’s first rhino orphanage has seen the business donate in excess of R50 000 in the last year and without further lockdown restrictions, this was set to increase for the next donation date.
Wagener said with China only opening up very recently, they have now started engaging with importers there, albeit in a landscape that has been significantly altered. “We’ve lost previous established relationships as importers on their side also struggled but the region remains a key focus for us.”
Rhino is currently establishing itself more in Europe and would then put official launch plans in place for China.
In September this year, the Deputy Minister of the Department of Trade, Industry and Competition (DTIC) Nomalungelo Gina said the liquor industry contributed 4.4% to the country’s Gross domestic product (GDP).
According to the Whiskey (Spirits) Market in South Africa-Outlook to 2023, by Research and Markets, the whiskey market in South Africa registered a negative compound annual growth rate (CAGR) of negative 1.96% during the period 2013 to 2018 with a sales value of R13.8 billion 2018, a decrease of 8.1% over 2017.
The market was said to have achieved its strongest performance in 2017, when it grew by 6.8% over its previous year and its weakest performance in 2018, when it fell by -8.1% over 2017.
The fastest growing segment of the whiskey market in South Africa between the year 2013 and 2018 was Other Whisk(e)y, which registered a CAGR of 7.22%. The weakest performing segment of the market was Scotch Whisky with a CAGR of -3.61%. In 2018 Scotch Whisky segment in South Africa Whiskey market accounted for a major share of 73.43%, while Other Whisk(e)y stood in second position representing 13.75% of the market’s 2018 share.
Whiskey includes all American, Canadian, Irish, Scotch and other Whisk(e)ys. This includes bourbon and rye-based whiskeys.
BUSINESS REPORT