Spirit in a Bottle: In Five Years, We See Ourselves Among the Top Ten Spirits Manufacturers in the World

After whiskey, Old Pilot's vodka is the new 'byproduct' of the pandemic that the pilot duo used to upgrade their production portfolio. It is hitting the market these days.  

Many have heard the story of the two pilots who created the best gin in the world – Old Pilot's. Their product has been recognized globally, receiving the label of 'the best' even before the company Spirit in a Bottle matured into a proper business system, with all its necessary departments and functions.

Often when we look at the balance sheets of a successful company, we see how a miracle happened in one year, a significant revenue jump that transformed a small company into a medium-sized one, a serious player in the market. In this entrepreneurial story, we are witnessing that moment in real-time. We are witnessing the transition of a small production facility into not just a local but a global player in the spirits production.

In two years, Tomislav Anadolac and Hrvoje Bušić produced three products in the beverage category: gin, whiskey, and vodka, gin-flavored pralines in collaboration with local confectionery producers, and a disinfectant during the peak of the pandemic when there was a high demand for such products. They invested everything into it, patiently waiting for the returns on their previous efforts and work.  

We spoke with them in a charming little distillery in Jankomir, their relatively new investment that was necessary for a larger business leap. Although at first, everything smelled like a piglet being prepared for a meal, it was the aroma of whiskey and that intoxicating scent of smoke that promises satisfaction. And it is 'cooked' in a kettle they call the happy machine. Hrvoje guided us through the facility, explaining how the distillation process works. In one room, there are large barrels containing spices used in production (specifically seven in their gin), and in another, there are barrels containing macerates, a water filter, and plant essences that smell divine. They actually use iStill technology in the production of distillates, one of the best technologies that allows for great precision in production and can achieve the desired flavors and aromas of the distillates.

As Bušić explained to us, most gin producers put dry, or solid plants into alcohol during distillation, while in their distillery, all plants are first extracted into something similar to essential oil, and then added to the alcohol to avoid bitterness and unwanted flavors that solid materials carry.

Perhaps at first, everyone wonders why whiskey, vodka, and gin, and not brandy and liqueurs which are indigenous products, but perhaps the answer lies in the fact that gin is the most versatile drink, especially in cocktails, and vodka is the best-selling spirit in the world. If you think outside national boundaries, that choice does not sound unusual at all.

To rewind a bit, the two pilots from the Military Academy in Zemunik, where they were both cadets of the Croatian Air Force, built the idea of a business venture alongside the development of their friendship. They spent a lot of time together, bringing bottles of fine drinks from distant countries and came up with the idea to try to 'brew something strong' themselves. Knowing that in every village there is some kettle where some brandy is made, they turned in a completely different direction that led them into the unknown and embarked on gin production. Back in 2017, when they started the company, there were only five producers of that drink in Croatia. They envisioned it as a hobby and an outlet from their daily jobs. Hrvoje still lives from flying, working as a pilot at Croatia Airlines, while Tomislav has his consulting company that he started with his partners in the IT and financial industry. Unlike Hrvoje, who 'stayed in the air', Tomislav built his career in the banking sector as a project manager and has collaborated with 11 banks on projects around the world. But they both dreamed the same dream of one day independently creating something of their own, holding a product in their hands that would show, feel (and in this case taste) their effort and work. Initially, five acquaintances gathered around the idea of producing spirits, but when it came time to invest their own money, only the two of them remained. It took two years to perfect the ideal recipe. At first, they used various spices from other parts of the world in their gin, but then they decided to focus exclusively on plants that grow in Croatia. So everything in their product is from our region, except for the barley used for whiskey production, which cannot even be sourced in Croatia. 

As Tomislav recounted, he and Hrvoje are quite different. While he likes to observe distance and breadth, Hrvoje looks analytically into depth, making them very compatible partners who complement each other. Hrvoje is more involved in organizing production processes and creating recipes, while Tomislav is focused on business development, i.e., finance, sales, and marketing. However, both participate in all processes.

Their turning point can almost be felt in the air. They are aware that as a duo, they are faster, more agile, and independent. Now, when demand has exceeded their capacity, they know they need new people (they are currently in talks with potential collaborators) and that this brings a whole range of new challenges and ultimately costs. But as Anadolac says, no matter how much they grow, production will continue to follow the craft philosophy that adds value to the product. We were amazed to see how two of their collaborators manually rinse, fill, label, and seal each bottle with wax. We witnessed the ‘hand-automation’ of production. 

– At first, everyone, especially distributors, looked at us with disdain, asking 'what can we do in the gin industry next to Great Britain' – recalls Anadolac.

However, the gold medal from London in the London Dry category at one of the most prestigious competitions in the industry – International Wine & Spirit Competition 2019, and two from San Francisco (they also won gold this year), silenced everyone. Today, Old Pilot's products can be purchased in Great Britain, Denmark, Switzerland, Slovenia, Bosnia and Herzegovina, Germany, Canada, Singapore, and Australia, with an annual production capacity of around 100,000 bottles.

Both would prefer to 'anchor' on this project, but until now there has been neither time nor opportunity. Since they invested around half a million kuna from their own savings into production, as owners, they have not taken a single kuna out of the company but have reinvested everything into new production capacities, products, marketing, and design that is truly recognizable. Recently, they also received a financial injection from EU funds for green transition and digitalization, worth three and a half million kuna, for the procurement of new technology, a kettle that will have zero carbon dioxide emissions.

– One of our goals is also to produce according to the principles of the green industry, which is self-sustainable and minimally pollutes the environment. In a year, with the new technology, production volume should increase by about 150 percent. However, it is easiest to buy a new kettle. Increasing volume brings new challenges such as logistics, higher costs for workers, raw materials, etc. – says Bušić.

Old Pilot's gin is a premium product that an average Croatian can only afford during gifting on special occasions. The pilot duo produces it expensively and sells it expensively. Their customers are mainly in the Horeca channel and in specialized beverage stores. Their brand has taken a special place among hospitality providers across Croatia, who have presented it as a genuine Croatian product in tourism. Guests who tried their gin on the Adriatic wanted to continue consuming it after their vacation, so they urged local distributors and retailers, creating an opportunity for export. The Croatian diaspora also reached out, longing for something local in foreign lands and willing to help. But then the pandemic hit, which 'swept away' tourism and hospitality. While small distilleries around the world were closing, Anadolac and Bušić used that time to reorganize their product portfolio. Although their sales fell by more than 90 percent last year due to the pandemic, revenues were better than in 2019. They started producing disinfectants under the brand Old Pilot's hand blend sanitizer, began exporting more vigorously, and developed two new products in a year, including vodka, which is hitting the market these days.

– The idea for vodka has existed for some time, but we realized it this year. We decided to produce pure vodka, without additional aromas and flavors, whose filtration lasts three days and passes through six filters and a special type of activated carbon, to ultimately achieve the right properties of purity and softness and a pleasant taste – says Bušić.

Anadolac added that what they are doing is a great business, although they still do not live from it and the company is still in the development phase. – We do not come from the world of distillers where our ancestors were engaged in this. Our path to success is very interesting, with all the mistakes we had to correct. During that journey, we were in contact with various potential partners; some wanted to invest, some to lend, but we decided to develop production with our own means and capacities. We are both family men, have other jobs, and look more cautiously at risks. However, we have reached a business turning point, we are present in many countries, and to satisfy customer interests, we must expand, improve capacities, and product quality. We have reached a threshold that we now need to cross, to become a business system with all its processes from a garage distillery. A serious team is currently gathering around us to help us with the transformation, including various lawyers, consultants, project managers, etc. – says Anadolac.

The revenue of Spirit in a Bottle has increased by 100 percent in two years, and this year they expect revenues in the range of five to six million kuna, with practically every six months launching a new product, which is a good result for a startup. Their currently most important and challenging market is the British market, not only because they entered a market where gin is a native product but also because the British are trendsetters. What the British drink, the whole world drinks.

'Old pilots' (who are actually in their prime entrepreneurial years) have become, among other things, a role model for other producers, so today there are as many as 40 gin producers in the Croatian market. They adhere to the philosophy of 'stretch as far as you can', be the best at what you do, and be authentic, without the usual complaints about administration and bureaucracy. It is precisely that authenticity in thinking that attracts a different energy.  For example, they sold most of their whiskey during aging, before the product hit the market because many enthusiasts recognized a good business opportunity in their barrels. Among others, a team that got rich trading cryptocurrencies is now investing in a product that will achieve up to 250 percent higher value after aging. But they have now halted that process because they want to leave part of the assortment for classic market placement.

Although their idea patiently 'ages' through a process that surely carries many frustrations, both are aware that they are not far from greater financial success. Bušić sees his company Spirit in a Bottle in five years as a facility with much larger production capacity and a portfolio of 15 products in the top premium class, while he sees himself as 'grounded' and solely dedicated to production.

Anadolac believes that the difference between unsuccessful and successful entrepreneurs lies only in the fact that the former gave up.

– We plan to stay on the market for a long time. At least as long as we can and know how. I see Spirit in a Bottle among the top ten spirits manufacturers in the world. We do all this with pleasure. It is not easy and there are many challenges, but you will still hear a lot from us – concludes Anadolac.  

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