Making It with Jon Davids: Episode 173 - How To Build a Beer Empire with Manjit Minhas
In Episode 173 of Making It with Jon Davids, host John Davidson engages in an insightful conversation with Manjeet Minhas, the dynamic entrepreneur behind Manhattan Breweries, Distilleries, and Wineries. Released on February 28, 2025, this episode delves deep into Manjeet's journey from launching a private label alcohol brand to establishing one of the world's largest independent breweries, generating hundreds of millions in revenue. This comprehensive summary captures the key discussions, strategies, successes, and lessons shared by Manjeet Minhas.
1. Company Overview and Operations
Manjeet Minhas begins by outlining the scope of her business:
“We brew. We create beer, spirits, and wines from scratch in seven different manufacturing facilities around the world. And then we brand them, we market them. We don't own the retail outlets because we're not allowed, but that's really what we do, is we make alcohol.”
– Manjeet Minhas (00:56)
Manhattan Breweries operates seven facilities globally, employing approximately a thousand individuals. Emphasizing their commitment to efficiency and continuous operation, Manjeet explains the importance of preventive maintenance:
“We run as often as we can. 24, seven operations, we're down for two hours in the middle of the night... we truly believe in preventative maintenance.”
– Manjeet Minhas (01:55)
Their product distribution spans Canada, the U.S., and 16 other countries, partnering with major retailers like Costco, Trader Joe's, Walmart, and Sobeys. The company's portfolio includes both proprietary brands and private labels, catering to diverse market segments.
2. Building the Business from the Ground Up
Manjeet and her brother Ravinder founded the business in 1999, initially focusing on sales, marketing, and branding. They produced private label alcohol for their parents' liquor stores, a novel approach at the time.
“First, my parents’ liquor stores... they opened up liquor stores here. And so that's how we started, my brother and I, a private label brand for their stores, which was unheard of at that time.”
– Manjeet Minhas (07:24)
In 2006, they made a pivotal move by acquiring a historic brewery in Wisconsin, transitioning from a branding company to actual manufacturers:
“We negotiated a price that we could afford in cash. And then we became manufacturers and actual brewers, not just a sales, marketing, and branding company.”
– Manjeet Minhas (07:41)
This acquisition marked the beginning of their vertical integration strategy, allowing them greater control over production and operational efficiencies.
3. Strategic Growth and Vertical Integration
Post-acquisition, Manhattan Breweries expanded its manufacturing capabilities and ventured into building new breweries and distilleries across Canada and Mexico. Recognizing the importance of controlling cost centers, Manjeet and Ravinder established various subsidiaries:
“We have a graphic design company, a print shop, a glass blowing factory, a trucking company... We just don't farm. So we, you know, we still go to the farmers...”
– Manjeet Minhas (09:44)
This comprehensive approach ensured that Manhattan Breweries could manage everything from design and packaging to logistics internally, enhancing agility and reducing dependency on external vendors.
4. Funding Without External Investment
A standout aspect of Manhattan Breweries' growth is its bootstrapped funding model. Manjeet emphasizes the importance of financial discipline and maintaining complete ownership:
“So zero debt, no investors, no loans. My brother and I have bootstrapped it and paid with what we had in the bank... we own 100% of the company.”
– Manjeet Minhas (12:06)
By avoiding external debt and equity financing, they retained full control over business decisions, allowing for organic and unencumbered growth.
5. Securing Major Partnerships
Manjeet recounts the arduous process of securing significant contracts with major retailers like Sobeys in Canada and Trader Joe's in the U.S.:
“In Canada, that was with Sobeys, and in the US it was with Trader Joe's. Trader Joe's came to us, and we were then ranked... the ninth largest brewery in the US and now we are the ninth largest brewery in the world.”
– Manjeet Minhas (14:05)
After two years of persistent efforts, securing these partnerships served as critical milestones, validating their business model and propelling them into the competitive market landscape.
6. Division of Responsibilities and Leadership
Manjeet and Ravinder operate with a clear division of responsibilities, leveraging their complementary skills to manage the growing enterprise:
“Ravinder... handled all of our sales teams, all of our new product development, and did a lot with our government relations.”
– Manjeet Minhas (16:07)
This structured partnership ensures that all facets of the business are managed efficiently, fostering a collaborative and productive leadership dynamic.
7. Strategic Partnerships and Branding Excellence
A significant highlight of the conversation revolves around Manhattan Breweries' strategic partnerships, notably with brands like Happy Dad and emerging collaborations with personalities like Aisha and Steph Curry:
“We decided that let's partner with some people who are really good at marketing, and we're really good at making a really great product...”
– Manjeet Minhas (23:45)
Manjeet underscores the value of equity partnerships over mere endorsements, ensuring mutual stake and commitment:
“They are equity partnerships. They're not endorsements, because we don't believe in that. We want skin in the game...”
– Manjeet Minhas (24:27)
These collaborations have resulted in highly successful products, such as Happy Dad Hard Seltzers, which soared in popularity, demonstrating the efficacy of their partnership strategy.
8. Embracing Failure and Learning from Mistakes
Manjeet candidly discusses the challenges and failures encountered, particularly in their foray into the wine sector:
“One of the biggest failures that we had was our whole wine portfolio... we didn't have velocity off of shelves and people that were coming back.”
– Manjeet Minhas (32:43)
Despite initial setbacks due to product misalignment and ineffective sales strategies, Manjeet's resilience led to a renewed and successful approach with Dragon's Tears Wines:
“I never give up. And so then 15 years later, as I always had it, I was always still researching... we came up with Dragon's Tears wines. We did it very differently, though.”
– Manjeet Minhas (36:03)
This experience highlights the importance of perseverance, adaptability, and continuous improvement in entrepreneurial ventures.
9. Insights on Pitching and Entrepreneurship
Drawing from her experiences on Dragons Den, Manjeet shares valuable advice for entrepreneurs:
“They often don't understand... the financial planning, they really often don't understand. But I would say the other part is the selling, the pitching part... you have to be good at selling.”
– Manjeet Minhas (28:15)
She emphasizes the necessity of mastering financial literacy and effective storytelling to convey passion and value to investors and customers alike.
10. Future Vision and Continued Growth
Looking ahead, Manjeet envisions continued expansion and innovation within the alcohol industry, while maintaining ownership and control:
“I still believe that we have so many things to do within the industry... we like to be rebels in the industry... we do fine. But it's exciting still for us.”
– Manjeet Minhas (42:37)
She articulates a commitment to sustainable growth, embracing technology, and exploring new business opportunities, all while staying true to the company's core values and mission.
Conclusion
Manjit Minhas' journey with Manhattan Breweries exemplifies entrepreneurial grit, strategic foresight, and an unwavering commitment to quality and innovation. From humble beginnings in a family-run liquor store to commanding a global presence in the alcohol industry, her story offers invaluable lessons in perseverance, smart financial management, and the power of strategic partnerships. For aspiring entrepreneurs, Manjeet's insights provide a roadmap to building a resilient and thriving business in a competitive market.
This summary captures the essence of Episode 173, providing a detailed overview for those who haven't listened while highlighting Manjeet Minhas' key strategies and philosophies in building a successful beer empire.