Carving out a SpaCe in the auStralian Beverage Market
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Metro Beverage Company (MBC) started out as Melbourne Beverage Company in 1998. Father and sons team Boris, Henry, and Aleksandar Velkovski may have started small, but they had big dreams – and a winning strategy to match.
Written by Claire Suttles
The business took off almost immediately. Today, the once
humble operation is a major Australian beverage distributor
with an impressive stock of international brands and Austral-
ian brands and a growing national presence.
“The company has come from being a three man operation
to [employing] just under 100 people within 14 years,” Henry
explains. And it hasn’t been an accident. “I think it really boils
down to hard work and determination… and when opportu-
nities arose, we took them.” Indeed, the family has a nose for
industry trends – a talent that has earned them an enviable
share of the nation’s beverage distribution market. “We’re
always open to ideas and innovation if it has merit within the
industry,” Henry says.
Phenomenal Growth
The family was keen to expand from day one and, back in 2000,
they leapt at the chance to align with Unilever’s Lipton Iced
Tea brand. In response to this promising contract, the busi-
ness changed its sales and distribution model into a ‘book and
deliver’ system, and the company quickly took off from there.
The family was also carefully studying the
increasing popularity of energy drinks in
Europe and Asia during those early
years. “We saw the opportunity,”
Henry recalls. “We saw the market
trend of the product overseas.”
As a result, MBC was “one of the
first to jump on Red Bull.” In
fact, the company was one of
the only operations in Austral-
ia at the time to recognise the
huge potential of the energy
drink market. “They used to
laugh at us,” Henry remem-
bers. “People were laughing
at the fact that you would
pay $3.00 or $3.50 for a 250mL
can, when back in 1998 or 1999
you could buy a 600mL Coca
Cola for $2.00 a bottle. That’s
all changed nowadays, but the
challenge back then was to try
and convince retailers that they
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need this product, that this is the future.”
How did MBC manage to convince retailers and successfully
change the face of the Australian beverage market? “It was
just persistence, determination, and hard work,” Henry ex-
plains. “We got distribution, we gained traction, and people
started to buy the products; the marketing came along with it
and we found ourselves in a really good position.” The com-
pany’s early success had a snowball effect, and the team was
able to add other key brands to its portfolio, including Moun-
tain Fresh Fruit Juices, Ribena and Lucozade.
“The once humble operation is a major Australian beverage distributor
with an impressive stock of international and Australian brands and a growing national presence.”
Throughout this expansion, Henry says that the company’s
strategy placed “a very strict emphasis on niche brands in an
ever evolving market.” In other words, the team was always
on the lookout for “new, fresh, healthy, functional alterna-
tives.” This strategy hit the nail on the head and, in 2005, the
team was able to expand operations into South Australia and
Western Australia and establish new regional offices in Ad-
elaide and Perth. “The bold and extremely challenging move
proved successful, with MBC establishing itself as a major
prominent player in these two new markets,” Henry reports.
The company also updated its name during this period, re-
placing “Melbourne” with “Metro.”
Today, MBC is one of Australia’s largest independent route dis-
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tributors of beverages and boasts an active customer base of
over 10,000 accounts over the three capital cities. Some things
haven’t changed, however. The company is still 100 per cent
family owned, and the three founders remain at the helm.
Success Story
“MBC has always had a strong emphasis on launching new
products and new beverage categories with a niche market
positioning,” Henry explains. “This emphasis is how the
company established itself and its reputation within the
FMCG industry.” Indeed, the business carries a diverse mix of
Australian-made and imported beverages, giving customers
a satisfying range of leading products from which to choose.
This product range includes major brands such as Lipton Iced
Tea, Red Bull, Ribena RTD, Mountain Fresh Juices, Nu Pure
Water and Thank You Water, all of which “are testament to
MBC’s expertise in beverage sales and distribution.”
MBC’s uncanny ability to recognise – and take full advantage
of – emerging market trends can be traced back to one core
concept: “In the end, it’s all about giving our customers what
they need – good brands, good service, and competitive
pricing,” Henry says. Expansion also means accepting risk.
Even though MBC hasn’t gotten it wrong yet, nobody can
ever be entirely sure how a new product will go over. For this
reason, the family is always mindful of the business’ current
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market positioning before launching into the next phase.
“Get the thing you do best right first, before venturing into
other opportunities,” Henry cautions.
“Giving customers what they need” obviously means offering
a specific product ideal for the target market. Equally impor-
tant to this concept, however, is providing stellar customer
service. “At the end of the day, we don’t offer our customers
anything less than what we expect ourselves from our sup-
pliers: efficiency, reliability, great products, great prices, great
deals, and going the extra mile for your customer. We are
always committed to improving our customers’ satisfaction
and expectations of MBC.”
The company also credits its strong relationships with retail-
ers and suppliers. MBC appreciates its close ties with strong
industry brands such as 7-11, BP, and Subway, as well as with
countless Mum and Pops. “Every single corner store [has]
played a big part in the growth and support of the MBC busi-
ness,” Henry says. Support from suppliers, many of whom are
leading players in the international beverage industry, has
also been vital to the company’s success. “Our suppliers are
our business partners,” Henry points out. “Working closely to-
gether has been pivotal in our achievements.”
Looking Ahead
MBC isn’t resting on its laurels. Instead, the team continues
to push forward with new products. One noteworthy recent
addition to the company’s portfolio is the not for profit Thank
You Water brand. The Thank You Water P/L organisation
donates the profits from each sale to building water wells
in developing countries. “We loved the concept. We loved
the idea,” Henry says. “We were the first to jump on board
and really drive their brand.” MBC was hooked within the first
ten minutes of the organisation’s sales pitch, he adds. “[We
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ordered] 38,000 bottles on the spot,” and the partnership was
a natural fit. “The social responsibility that was being present-
ed by three enthusiastic university students without a cent
behind them reflects MBC’s values and behaviours,” Henry
explains. Several other recent launches have been met with
great success as well, including Nu Pure Water – Australia’s
first water in a biodegradable bottle; the new Red Bull Special
Editions; and Lipton Iced Tea Virgin Mocktails.
“Some things haven’t changed; the company is still 100 per cent family
owned, and the three founders remain at the helm.”
The team is also carefully following market trends so that it can
continue to distribute the hottest, most sought after product.
In fact, this market sense may be more important now than
ever before. Henry believes that the average Australian is be-
coming increasingly discerning of beverages. “Consumers are
becoming a lot more conscious in their decision making when
purchasing beverages,” he reports. Most notably, he says, is
a move toward ‘health and wellbeing’ products. “Society is
seeking healthier options.”
Henry also points out that as the company grows, “Our buying
power ensures we are able to offer the best brands to our cus-
tomers at competitive prices, maintaining an efficient and reli-
able distribution network.” Indeed, the larger the operation
gets, the better equipped it is to serve its customers and offer
the newest, most up-to-date product range.
The company is eager to expand its customer base with ad-
ditional niche products in order to enlarge its geographical
footprint. “The company is always looking at any opportunity
to expand and become a national operation,” Henry explains.
With a solid share of the market in three states, covering the
entire country cannot be far behind.
To make this goal a reality, Henry says that the team will rely
on the same formula that took them from a small Cash Van
operation to a leading Australian beverage distributer: “Of-
fering retailers and consumers the best brands, at the best
prices, with a service level you can rely and depend on.”
And of course, the company will continue to implement its
uncanny ability to read the market. The company motto
probably summarises it best: ‘We’re serious about drinks.’
675 Victoria Street | Abbotsford VIC 3067 | Phone: 02 8412 8119 | ABN 93 143 238 126
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Metro Beverage Company
62 East Derrimut Crescent
Derrimut, Vic
P: 1300 123 622
F: (03) 9394 1366
www.mbcdrinks.com.au
www.lzenterprises.com.au www.johnsitalianexperience.com.au
