AS initiatives like the Social Stock Exchange encourage more people to back social enterprises we hear from a business which reflects the range of firms working in the sector in Scotland.

Name:

Christopher Gillan.

Age:

37.

What is your business called?

Heroes Drinks Company C.I.C.

Where is it based?

Edinburgh.

What does it produce?

Heroes Drinks Company is the world’s first not-for-profit alcoholic drinks brand in the world. Our Heroes Vodka is contract distilled in the Midlands and bottled in the Central Belt, using Scottish water.

The integrity of the company and its mission is represented by a minimum of 20 per cent of its profits being donated to partnering charities: the Royal Navy & Royal Marine Charity, the Army Benevolent Fund, and the Royal Air Force Benevolent Fund. The remaining profit supports business development, creating jobs for veterans nationwide, and work placement programmes aimed at helping veterans back into work.

To whom does it sell?

In January of this year we won a contract to be stocked in more than 350 ASDA stores across throughout the UK and Northern Ireland.

Heroes is also available to on-trade customers via several wholesalers.

What is its turnover?

Around £60,000 but that figure is set to more than double in the next financial year.

How many employees?

We have two full-time employees. Our most recent employee is military veteran Martin Hogg, who was medically discharged from the Army following an incident that left him in a wheelchair. After two years of hard work, grit and determination, Martin was free from his wheelchair and has since dedicated his time to supporting military charities. Martin is our operations manager and is focused on supporting growth to enable the creation of more jobs for veterans.

When was it formed?

August 2012.

Why did you take the plunge?

In 2008, I volunteered to undertake a role working alongside the Special Air Service in Afghanistan. During this, I sustained an injury which on leaving the military prevented me from undertaking the fitness test to join Lothian & Borders Police. This, combined with a recent house flood, left me in severe financial difficulty, ultimately unemployed and homeless. This personal misfortune resulted in the need for me to seek help from the armed forces charities, which ultimately led to a greater awareness of the huge demand on them and an inner calling to want to help. Having reflected on their funding methods, I decided I wanted to find alternative ways to source income for the charities but also to create employment opportunities for fellow veterans whose employment prospects have been hampered by injuries caused from service.

I got the idea for developing a vodka after researching a plan to expand a former colleague’s wholesale business into Scotland. My contact with potential customers showed there was strong interest in the drink.

After considering sourcing from Poland and Russia I investigated the possibility of distilling our own vodka, but was put off by the scale of the up front investment required. I decided to use a UK producer after getting samples from three firms, which were blind tested by several Edinburgh based Polish vodka connoisseurs. As I was keen for the vodka to have a local footprint I sourced a local bottling plant in central Scotland where the liquid is diluted using high quality demineralized Scottish water.

Satisfied with our final liquid, our next challenge was to review our branding and packaging options. Our initial product which we used to test the market had resulted in mixed feedback highlighting concerns with the use of a black bottle and lack of information on the front of the bottle regarding the products charitable nature. As a result we turned to Edinburgh-based design agency RRD Creative who loved the project and offered their services pro-bono. We subsequently underwent a detailed rebranding process.

Creating ultra-premium vodka in high quality packaging took 18 months to complete but convincing retailers and wholesalers to list the product proved to be our biggest challenge. After a period of time spent growing our brand awareness, attending various military and exhibition events UK wide and advertising in various magazines, we were able to demonstrate to retailers a consumer interest in our product. After several attempts to list Heroes Vodka with the national retailers, we finally got our break when we launched in over 350 stores across the UK early this year.

How did you raise the start-up funding?

Heroes Drinks Company was initially self-funded using the small amount of compensation received from the MOD for my injury. As the business developed, I sought alternative funding via various channels, including the British Legions ‘Be The Boss’ programme, the Government’s start up loans scheme and more recently via Social Investment Scotland.

What was your biggest break?

Securing the national listing for Heroes Vodka with ASDA.

What do you most enjoy about running the business?

Achieving small successes, such as donations to our partnering charities and the completion of work placements programmes for fellow veterans. I also enjoy seeing customers genuinely surprised by the exceptional quality of our product.

What do you least enjoy?

The personal financial restraints from several years without a salary but more so, the financial impact on my family; not being able to spend quality time with my children or being able to afford to go on holiday with my partner and children. I can only hope they will understand the reasons for these sacrifices when they are older.

What are your ambitions for the firm?

To expand our range of products and those charities we support but also to achieve global distribution and a significant increase in employment opportunities for disadvantaged individuals.

What are your top five priorities?

To create affordable high quality products anchored in benevolence; to build a profitable and sustainable business which will enable Heroes Drinks to provide secure long-term employment for our veterans; to increase donations to charities and employment opportunities year on year; to ensure continued growth of sales, including international distribution; to assist veterans in developing and expanding their personal skills via work placement programmes; to strengthen their employment opportunities.

What single thing would most help?

A significant cash investment to support business development and brand awareness.

What could the Westminster and/or Scottish governments do that would help?

To educate the public on what a Social Enterprise is and the benefits to the community

Also, greater financial support for individuals who demonstrate a tangible business plan with real potential for growth, especially within the social enterprise sector where the benefit is for the community and not the individual.

What was the most valuable lesson that you learned?

To be flexible and persistent. Whilst it is good to have a clear vision and direction for your company, it is unlikely to go according to plan. In the military we tend to use the phrase, “adapt and overcome”.

How do you relax?

Heroes Vodka served with lemonade and ice, garnished with a slice of orange. Alternatively, I take advantage of the Pentland hills and the various walkways.