Enterprise: TWØBAYS Brewing Company
Why they stand out: The dedicated gluten-free craft brewery won the FY22 Xero Australian Small Business of the Year award, continuing to grow with its distinctive collection of beers.
Richard Jeffares was diagnosed with coeliac disease in 2015 and a gluten-free diet meant missing out on the craft beers he used to enjoy. Determined not to miss out on this pleasure, Richard decided to do something about it and started a dedicated gluten-free craft brewery on the Mornington Peninsula. TWØBAYS released its first beer in December 2018 and is now sold by almost 2000 stockists around the country.
Starting out with a core of three ales – the first release was TWØBAYS’ flagship Pale Ale – the brand has now built a core range of five beers, adding its XPA, IPA, Lager and mid-strength Session Ale. “We believe there is a beer for every occasion and this range covers off most of these,” Richard explains. “We have also released more than 15 limited-edition beers that showcase the incredible style and flavours you can find in the craft beer world.” These include a gold medal-winning Stout, a Passionfruit Sour and Margarita Gose. “And we have many more interesting beers planned,” Richard enthuses. “In 2021, we also launched our new brand, GFB, with a classic Aussie Draught. It’s been a huge success and has shown us how many people just want a straightforward, easy-drinking beer.”
“Our belief that the ‘data never lies’ is stronger than ever.”
Richard predominantly brews with millet, buckwheat and rice malts, producing beers with interesting flavours, and a range of hops to lend a distinct aroma.
When Inside Small Business first spoke to Richard, soon after the launch of TWØBAYS, he stressed the importance of data analysis in being successful, and that is still a core element in his approach. “Our belief that the ‘data never lies’ is stronger than ever, and the last four years has only reinforced that, as we continue to monitor all available data sources right across the business,” he explains. “We use our production data to drive consistency and efficiency in the brewing process without compromising quality.”
TWØBAYS’ marketing team leverages owned media data to better understand its customers and the market opportunity as a whole. This ensures communication with the right people in a meaningful way. TWØBAYS was named FY22 Xero Australian Small Business of the Year, reflecting its use of data to drive innovation and growth.
The business succeeded in continuing to grow through the pandemic, across both its wholesale and direct business; only its Taproom was significantly affected by COVID-19. “We doubled our production capacity in 2020, and then added a further 60 per cent late in 2021,” Richard says. “With close to 2000 stockists, we have developed a strong national footprint – including national Pale Ale ranging with Dan Murphy’s and GFB Draught in First Choice Liquor stores across the country – with plenty more opportunities in bottle shops, pubs, clubs and restaurants nationwide.”
Richard and his team have achieved compound growth of 160 per cent over the last three years, and their success landed them in 16th place on The Australian Financial Review’s Fast Starters List last year. “That growth has continued in FY22, albeit at a slightly slower rate, and we are now the largest independent gluten-free brewery in Australia,” Richard says.
In the next couple of years, he sees the company’s biggest growth potential in expanding distribution across the on-premise and off-premise wholesale channels. “There are tens of thousands of liquor licensees across the country, and we hope that every one of them will stock a gluten-free beer for their customers to enjoy – so the opportunity is still huge,” he explains. “The most recent data from The Medical Journal of Australia shows that up to 25 per cent of the population is avoiding gluten – up from 15 per cent in 2015 – so our customer set is continuing to grow. We are firmly focused on making sure they realise they can enjoy a range of great gluten-free beer.”
This article first appeared in issue 37 of the Inside Small Business quarterly magazine
