Top Shelf International (TFI) has formalised the appointments of three executive positions, including CEO, as it looks to claw its way out of debt and towards profitability.
The company produces alcoholic spirits including the whisky NED, vodka Grainshaker, and the Australian Agave Project – more than 500,000 agave plants maturing in Far North Queensland with late 2023 earmarked as the release of its agave spirit, Act of Treason Agave.
TFI confirmed the terms of Trent Fraser’s appointment as CEO, Adem Karafili’s variation to executive director, and Julian Davidson’s appointment as non-executive chair have been finalised.
Fraser’s appointment was announced in April, replacing TSI co-founder Drew Fairchild. Fraser joined the company in 2021 as president Agave and International.
Fairchild said it was easy to get lost in the day-to-day detail, but stepping back to reflect on the nine years since founding the company meant he could see what they had achieved as extraordinary.
“I have always been of the view there would come a time where new leadership is required to take the Company into its next phase. The time is now right for that change to occur. I leave content in what has been achieved and what the future holds in store for the Company,” Fairchild said.
Fraser has more than 20 years’ experience in the wine and spirits industry, with more than a decade at Penfolds and Treasury Wine Estates before heading overseas. He joined luxury goods company LVMH as VP of Dom Perignon for eight years before becoming CEO and president of tequila brand Volcan De Mi Tierra Tequila (2015-2021).
“We could not have found a more well-credentialled, internationally recognised Australian in the spirits world to help the company realise its ambition to become Australia’s first globally relevant multi-branded spirits company.
“He has my full backing to drive the company to even greater heights, including the long-anticipated launch of our Act of Treason Australian Agave later this year. I can’t wait to see that come to life,” Fairchild said.
Fraser said: “I am humbled to be entrusted to lead a company with the potential of TSI. Building an Australian spirits company from the ground up is a monumental task and having worked closely with Drew since joining the company in 2021, I have deep appreciation and admiration for what he achieved in such a short period.
“I could not be more energised to help TSI realise its ambition, and look forward to developing productive relationships with shareholders, customers and other stakeholders.”
Meanwhile, in late July, Karafili stepped down as executive chair to executive director, with the view he would retain the executive role until a number of strategic projects were completed. He had been executive chair for six years, from when Top Shelf was a privately held start-up to its listing three years ago and launches of existing brands.
Karafili said, “The completion of the capital works program and the planned appointment of Trent Fraser as CEO were the threshold changes to transition my role within the organisation.
“Beyond the assets of Top Shelf International I am most proud of our portfolio of premium spirit brands –NED Whisky, Grainshaker Vodka and Act of Treason Agave.
“It has been a huge team effort requiring a bold ambition, and I thank everyone, including shareholders for their dedication and support to get to this juncture.”
With a career spanning multinationals and small private companies, ASX and US listed companies, start-ups, and private equity ventures, the new chair, Julian Davidson, has more than 30 years’ experience in the alcoholic beverages industry. He held CFO, CEO, and managing director roles in various Lion divisions for 15 years before working for Pacific Equity Partners (PEP).
After PEP was acquired, he joined Independent Liquor, initially as Group CFO and then CEO roles covering New Zealand, the US, and Canada. Following Asahi’s acquisition of the company, Davidson stayed on for three years before joining US company Long Island Iced Tea Corporation, leading a successful capital raise and uplisting to the Nasdaq.
“Julian’s vast domestic and international industry experience, coupled with his financial credentials and capital markets expertise, will provide the board with the essential skills needed to help guide us through the next phase of our growth. This includes a period focussing on the execution of the international strategy for our brands and the commercialisation of the Australian agave opportunity,” Karafili said.
Stephen Grove has joined the board after investing in TFI for “many years”. He is also the executive chair of his company Grove Group, non-executive director of Boom Logistics, and principle of motorsport outfit Grove Racing.
Lynette Mayne and Peter Cudlipp both stepped down from the board this year.
FY23 report
Reporting a net loss after tax of $48.3 million for FY23, TSI said it had completed a “significant reset” of the company in 2H after a strategic review had revealed an urgent need to change the business model.
An organisational restructure, the leadership changes (above), and securing its retail footprint through a new distribution deal with Endeavour Group and expanded one with Coles Liquor were key achievements for the company.
Snapshot
- Net loss after tax: ($48.3m), up 194% from ($16.4m) prior corresponding period (pcp);
- statutory EBIDTA: ($27.5m), up from ($18m) pcp; and
- revenue: $17.1m, up 19% on FY22.
Its share price has fallen from $1.46 this time last year to $0.20. The stock has fallen 84 per cent since January, with the announcement of a capital raise in March causing a drop to ~$0.84 and another in May seeing it fall to a low of $0.14.
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