The Teeling family in the CASE STUDY whiskey industry Jack Teeling was sitting in a labour ward Teeling Whiskey Company: a tradition of awaiting the birth of his daughter when he received an e-mail informing him that family entrepreneurship and whiskey the sale of the whiskey company he managed was to proceed. In Jack’s mind, distilling two momentous occasions had occurred: first, the birth of his daughter and second, his decision to leave the newly acquired distillery and establish his own Colm O’Gorman, Martina Brophy and Eric Clinton whiskey business. Jack Teeling was Managing Director of Cooley Distillery when the sale was negotiated. The board of Cooley agreed The authors are with the DCU Business School, Dublin City University, to the sale of the distillery to Beam Inc, a Dublin 9, Ireland. Colm O’Gorman is Professor of Entrepreneurship, Martina multinational business (now Beam Brophy is a Research Assistant and Eric Clinton (corresponding author) is ) for $95 million (€71 million). Director of the Centre for Family Business and Lecturer in Entrepreneurship. Despite having 350 shareholders, Cooley E-mail: [email protected]. was considered a family affair as almost half of the company’s shares were owned by the Teeling family. Jack’s father, , founded Cooley in 1987 and The Case Study section of the International Journal of Entrepreneurship and developed it over the following 25 years. Jack and his younger brother, Stephen, Innovation serves two purposes. First, the case studies presented are con- worked at Cooley for ten and seven years cerned with problematical issues that are pertinent to students of respectively and rose to senior manage- entrepreneurship. Thus they constitute appropriate teaching and learning ment positions: Jack to Managing vehicles on a variety of postgraduate and undergraduate programmes. Each Director and Stephen to Global Retail case study is accompanied by a set of guidelines for the use of tutors. Second, Manager. Both brothers acquired shares it is envisaged that those engaged in entrepreneurial activities will find the in the company. For the Teelings, the sale cases both interesting and useful. was more than the loss of company control – it was the loss of a legacy. Abstract: This case study explores the origins of a new high-growth family Many past offers for Cooley had been start-up competing in a traditional industry. Teeling Whiskey Company Ltd rejected, so Jack was shocked to realize (TWC) is the brainchild of entrepreneur Jack Teeling. This new venture that, this time, the deal had materialized. stems from another high-profile, family-based business named Cooley Following a decade at Cooley, Jack possessed a good understanding of Distillery. Jack was Managing Director of Cooley Distillery, the business whiskey distilling processes, but his his father founded in 1987. At Cooley Distillery, he acquired a wealth of strength lay in whiskey sales and professional experience in whiskey distilling and selling. When the distillery marketing. In Jack’s view, establishing was sold to a large US spirits company in 2012, Jack pursued his own his own whiskey company was the next entrepreneurial venture in . A year after the business was logical step: founded, Jack was joined by his brother Stephen Teeling, and together they have shaped their idea for a boutique, premium whiskey distiller producing ‘I could have gone off and got a innovative offerings into a fast growing, internationalized business. Jack franchise or could have got involved and Stephen need to build a niche for TWC, as many new distilleries are in property, investing or financial due to enter the market. services but I felt I had a specific insight into Irish whiskey therefore, it Keywords: entrepreneurship; prior knowledge; prior experience; start-up; would be foolish of me not to utilize family business that knowledge and those connections and relationships and see if I could Key learning outcomes: perceiving opportunities; pre-incubated start-ups; actually carry on what we had started examining the ‘nature versus nurture’ debate in Cooley.’

Jack was aware that whiskey distilling was risky. The payback period is lengthy, as attested by Cooley Distillery, which

ENTREPRENEURSHIP AND INNOVATION Vol 16, No 3, 2015, pp 217–225 doi: 10.5367/ijei.2015.0195 217 Case study – Teeling Whiskey Company took 11 years to make its first profit and Jack implemented a revised corporate 15 years before cumulative profits strategy for Cooley that focused on exceeded cumulative losses. However, launching super and ultra-premium Jack believed Irish whiskey presented a products, targeting four key brands in potentially rewarding opportunity, and established European and US whiskey this drove his passion for re-entering the markets, and expanding the marketing whiskey industry: team. While developing Cooley’s strategy, Jack gained vast insight into ‘I wanted to get right back in there consumer trends within the whiskey and fill that hole in the market that industry: was being created, be it with a range of products that international ‘What I noticed in Cooley was that distributors would have or spark the Figure 1. Jack Teeling. the world changed quite dramatically Photo by Conor McCabe Photography. consumers’ interest in different things for Irish whiskey from the 1990s up from Irish whiskey. I think we’ve to 2005/2006. Millennial consumers managed to take advantage of that were coming into the category. It was Jack’s early life, his Cooley Distillery quite successfully over the last two to really hard for Cooley to adapt career, the establishment of TWC and three years.’ because it had been set up in a certain TWC’s initial growth. way. It had scar tissue from the tough Teeling Whiskey Company (TWC) is an years in the 1990s. There was a big internationalized start-up with the Jack Teeling, the entrepreneur selling job for someone like me to go ambition to reinvigorate the Irish in and drive a huge amount of change whiskey category. Jack’s vision is to As children, Jack (see Figure 1) and at the top level.’ grow the business from whiskey Stephen Teeling became accustomed to blending and bottling to distilling. Since the business world. Jack describes Stephen joined in 2013, the brothers have His brother, Stephen, was appointed to a himself as an independent person who led the company to rapid growth, with marketing role when he joined Cooley in never liked asking for help, even in international turnover increasing from 2006. Post-Cooley sale, Stephen stayed childhood. Their father, John Teeling, €143,500 to €1.8 million in a year. with Cooley and was promoted to Senior was an established entrepreneur with In 2012, as TWC was formed, the Irish Global Marketing Manager for Irish stakes in multiple natural resource whiskey category experienced a major Whiskey. Jack was given the opportunity companies. John Teeling, once a lecturer revival. The sector is expected to invest to stay at Cooley, but he declined the in business at a leading Irish university, €1 billion in Ireland over the next decade offer. As Managing Director, Jack was founded Cooley Distillery in 1987 when as Irish whiskey exports are set to double afforded a high degree of autonomy, Jack and Stephen were aged eleven and to 12 million cases by 2020. In the face which he believed would not be main- six. of emerging competition, Jack has shown tained under the management of a Business appealed to Jack, and in a steely resolve and unwavering ambition multinational company. Jack had mixed 1994, he attained a Bachelor of Com- in his attempt to offer a fresh take on feelings about his departure from merce degree at University College Irish whiskey: Cooley: Dublin. Following this, he completed a Master’s degree in finance. Jack worked ‘We don’t want to just produce an ‘It was a family company but it as a private bank equity dealer for three Irish whiskey. We want to produce the wasn’t my vision. It always had to be years before joining his father’s whiskey most interesting, different Irish respectful to the people that were business in 2002. He began his Cooley whiskey so that when people want to there before. For me there was a bit of career in a commercial role before get away from the mass market they mourning when Cooley was sold but moving to Sales and Marketing Director can discover us and we can take them it did provide a blank canvas for what in 2007. Jack also completed a part-time on a journey of trying different I thought was required for a new Master’s degree in international market- things.’ premium Irish whiskey.’ ing so he could give the company added value. On his progression in Cooley, Jack This is the story of entrepreneur Jack He oversaw the integration process of remarks: Teeling and the origins of his whiskey Cooley into Beam before pursuing his start-up, TWC. The aim of this case is to own entrepreneurial venture. Jack challenge the preconceived notion of ‘I became managing director in 2010 believes his inherent risk-taking ability entrepreneurs as solo entities, and instead and started big change, managing stems from exposure to his professional to consider entrepreneurs as ‘organiza- programmes, trying to evolve the environments. Yet he is a proponent of tional products’ drawing on existing organization to allow us to take both ‘nature and nurture’ in explaining organizational experiences and resources advantage of the opportunities. We entrepreneurial tendency. In April 2012, for entrepreneurial opportunities were really beginning to see the three months after the sale of Cooley, (Freeman, 1986). The case explores benefits of what we were doing.’ Jack established TWC (see Figure 2).

218 ENTREPRENEURSHIP AND INNOVATION Vol 16, No 3 Case study – Teeling Whiskey Company

1987 2002 January, 2012 April, 2012 Cooley Jack Teeling Cooley TWC founded

Distillery joins Cooley Distillery sold to by Jack Teeling founded by Distillery US company John Teeling Beam Inc

Sales and Managing Managing Jack works as Marketing Director, Entrepreneur Director, private bank Director, Cooley and founder, Cooley equity dealer Cooley Distillery TWC Distillery Distillery

Figure 2. Key events and the evolution of Jack Teeling’s professional life.

The start-up of Teeling can plug into that network and our portfolio using the traditional Dublin Whiskey Company products that we’ve already created.’ style of . The pot distillery consists of three traditional copper pot Jack and Stephen used their payouts from From the start, Jack was Managing stills with the capacity to produce Cooley to fast-track TWC. In 2012, Director, his wife Katherine was made 500,000 litres of whiskey annually. company shares totalling €1.3 million Company Secretary and Alex Chasko At Cooley, Jack became aware of the were sold to Teeling family members, was appointed as TWC’s Master Blender huge market potential in Irish whiskey with share ownership split between the and Distiller. Cooley’s former Innovation when he noticed an international revival following people: Jack (43%), Stephen Manager, Alex, has a background in in urban distilling. He remarked: ‘I was (37%), their parents John and Deirdre microbrewing from Portland, Oregon. He looking at what was happening in (7% each) and their sister Emma (6%). attained a Bachelor of Science degree in Brooklyn and London and to me there TWC is a self-funded entity aside from chemistry at the University of Oregon was a massive gap to do it in Dublin’. asset-based loans for inventory. The and a Master’s degree in brewing and In the 1970s, two Irish whiskey finance enabled Jack to begin company distilling at Heriot-Watt University, powerhouses, Jameson and , operations before producing even a drop Scotland. Jack needed someone who moved their operations away from of Teeling whiskey. shared his vision yet delivered the Dublin, bringing Dublin whiskey Getting TWC operating required one technical expertise required: distilling to an end. TWC claimed the major resource: a ready-made product. title of ‘first new distillery in Dublin for Jack and Stephen brokered a deal to ‘He was involved in installing the over 125 years’, which sparked attention purchase enough Cooley stock (16,000 micro distillery in Kilbeggan [part of from national media. With a strong barrels) from Beam Inc to keep TWC Cooley]. I kept in touch with him family heritage – a Teeling relation operational until its own production once I was on the way out and knew established a distillery in nineteenth commenced. ‘That [whiskey stock] has what I was doing and he became our century Dublin – and a clever slogan, proven to be a critical element in having first employee in June after I left.’ ‘The Spirit of Dublin’, TWC has a brand a tangible product, driving revenue for rich in personality. the company and helping us fund what In May 2013, the TWC team expanded However, every opportunity presents we’re doing now,’ said Jack. when Stephen left Beam Inc and joined substantial risks, and at 38 years old with TWC whiskey is custom-blended and the business as Sales and Marketing a young family, Jack had to take careful matured in hand-selected wooden casks. Director. consideration. The distillery and visitors’ The TWC warehouse or maturation centre required a €10 million investment. facility is based in the Cooley Peninsula, TWC’s first steps In accordance with the Irish Whiskey County Louth, Ireland. Jack recognizes Act, 1980, spirits must be matured in the unusual nature of his resource A distillery is central to the company’s wooden casks for no less than three procurement: progression from whiskey blending and years, making the first batch of the bottling to producing. Jack’s idea to build company’s own distilled Teeling whiskey ‘We’re doing it backwards. We have a distillery and on-site visitors’ centre ready for sale in 2018. Jack was not whiskey now and we’re exporting to emerged when the Kilbeggan micro- deterred and building commenced in 30 different markets. We have a distillery, as part of Cooley, was under August 2014. However, he soon realized reasonable brand awareness with construction. Jack knew that a distillery the difficulty of building a distillery, people and we’re going to continue to would secure TWC’s future whiskey operating an existing business and build on that until production in supply while enabling them to create a managing cash flow concurrently. Dublin comes on stream and then we unique, innovative Irish whiskey ‘Probably the most difficult thing has just

ENTREPRENEURSHIP AND INNOVATION Vol 16, No 3 219 Case study – Teeling Whiskey Company been paying the bills as they fall due,’ of targets a large consumer said Jack (Bodkin, 2015). grouping from the novice spirits drinker As construction of the distillery to the whiskey connoisseur. At the higher progressed, TWC continued blending end is the vintage reserve collection of and bottling whiskey. Its current products Irish single malts with maturation include the flagship Teeling Small Batch, periods of 21, 26 and 30 years. Teeling’s Teeling Single Grain, Teeling Single 30-year-old Single Malt retails at €1,500. Malt, and Teeling Premium Poitin.1 Sales Jack found that the €30–€50 price range of existing stock are crucial to sustaining for Irish whiskey was uncharted territory, cash flow and funding the build. The key so he exploited that price point gap by challenge for TWC is to ensure that its positioning a range of premium whiskies limited stock sells at the right price and at around €35. Jack’s intention was to does not run dry until production comes Figure 3. Teeling Whiskey Company provide an easy and affordable trade-up on stream. However, Jack’s ambitious Logo. solution from the standard Irish whiskies construction plan in one of the most Source: whiskyexperts.net. retailing at €25. The moderately priced expensive city locations has limited the and sweet-tasting Teeling Small Batch funding available to spend on advertis- , made of malt and grain retails at €39.99, making it an affordable ing. To generate widespread publicity whiskey matured in rum casks, is TWC’s option for cocktail consumption. Jack cheaply, the team focused efforts on innovation. Jack’s idea for whiskey and Stephen focused on the ‘mixology’ social media channels (Twitter, Facebook maturation in rum barrels was inspired trend within the alcohol industry, which and video-sharing site, Vimeo), dissemi- by Cooley. The blend is then bottled at led to a range of Teeling whiskey nated press releases to the national 46% with no chill filtration, which locks cocktails. Stocked in Dublin City’s media, and promoted products at events in greater flavour. Jack and his team trendiest cocktail bars, TWC exudes a such as Whiskey Live Dublin. conducted consumer tastings, and 90% young, exciting and urban vibe. of participants preferred the rum-married With Irish whiskey reportedly the fastest growing spirits category globally, TWC – a young player in a blend, reaffirming their confidence in the product. it was an opportune time for internation- mature market Since its launch, the whiskey has been alizing TWC. Global sales of Irish As a new entrant in a traditional industry, awarded numerous accolades including whiskey grew from 1.5 million cases TWC must stand apart from established Best Drinks Launch of the Year 2013 at annually to 6.2 million cases annually competitors. In essence, Jack’s start-up the Drinks International Travel Retail over 15 years (as of 2014). Jack became strategy for TWC focuses on three key Awards and Gold Medal at the 2013 aware of America’s growing craft elements: innovation, whiskey market Spirits Masters. In October 2014, the movement and spotted an opening for segmentation and internationalization. company released its latest offering, a TWC. In April 2014, TWC launched Innovation is a top priority for the 23-year-old single malt matured in five whiskey in approximately 30 American TWC team. The TWC bottle label different wine casks. This cask matura- states via an importer, ‘Infinium Spirits’. features a phoenix, a symbol of regenera- tion technique is new to Irish whiskey, TWC’s ambition for the US whiskey tion and unique remarkability (see Figure making it possibly the most innovative market is to introduce a more expensive 3). This mythical creature aptly reflects TWC bottling yet. selection of whiskies gradually. Jack the company’s bold mission statement: In Jack’s view, the Irish whiskey explained this strategic market position: category is at the beginnings of segmen- ‘While being respectful to the past tation. Carving a niche as a boutique, ‘The standard brands in the Irish and our own provenance we are premium whiskey distiller is central to whiskey category are in the $20–$30 confident enough to forge a new the TWC business strategy, according to range. Higher up you have whiskies future for Dublin and Irish whiskey Jack: like and the Bushmills through innovation and daring to do malts, but there’s not much in the things differently.’ ‘We’ve gone after areas we feel are middle. We want to provide a very under developed in Irish stepping stone and educate American Alex Chasko leads the introduction of whiskey so again you’re not compet- palates, because Irish whiskey has innovative and flavoursome whiskey ing with the “big boys”. It’s about more to offer than what they might expressions. While product experimenta- creating your own niche and unique expect.’ tion was limited to blending and offerings that will allow you to (Shanken News Daily, 2014) maturation, TWC produced award- maintain your price positioning and winning expressions including the don’t get caught up in the noise that While market conditions are favourable Teeling Single Grain whiskey, matured in the multinational can generate.’ for craft distilleries such as TWC, there Californian red wine barrels. In February remains competition from bigger, well 2013, TWC debuted Teeling Small Batch TWC’s product portfolio includes a established players. Jameson, the best- Irish whiskey, which later became its collection of premium single malt, single selling Irish whiskey, continues to lead, flagship product. This small-batch grain and blended whiskies. This range with growth of 13% in the nine months

220 ENTREPRENEURSHIP AND INNOVATION Vol 16, No 3 Case study – Teeling Whiskey Company to March 2014 due to strong US demand. the visitor centre. In June 2015, both whiskey and Teeling 21-year-old Single As a small company, however, TWC has distillery and visitor centre opened with a Malt whiskey were awarded World’s performed impressively. TWC’s exports team of 30 full-time staff. The state-of- Best in their respective categories at the have exceeded home sales as a result of the-art distillery affords Alex Chasko World Whiskies Awards 2014. Speaking the brothers’ internationalization strategy. more freedom to experiment with about this success, Jack Teeling re- Jack’s access to international distributors whiskey flavourings. Jack anticipates marked: at Cooley was used to secure importers that the visitor centre (complete with in the UK, France, Germany, Russia, café, display and tasting rooms) will ‘We are very proud of the whiskeys Canada, Belgium, and more, for TWC. attract some 50,000 visitors a year, which we have launched over the last two Its pursuit of existing and emerging he hopes to double annually over time. years and we are humbled to receive whiskey markets has resulted in TWC’s Jack and TWC have had some notable such recognition at one of the biggest presence in 35 export markets. Jack achievements to date. Jack Teeling is the awards in the whiskey world. These credits Cooley with enabling them to first person to open a new distillery in awards give us confidence to continue internationalize quickly: ‘We’re lucky to Dublin for over 125 years. The TWC team to launch innovative expressions of build upon our credibility that we has won more than 40 awards for its Irish whiskey driving choice within established in our Cooley days’. whiskies, launched a range of innovative the Irish whiskey category.’ products, and constructed a distillery and (Teeling Whiskey Company, 2014) Teeling Whiskey Company – an visitor centre in Dublin’s heartland. entrepreneurial success? Within a year of trading, TWC reported a Jack admits that he does not stop to profit after tax of €74,000 from revenues celebrate achievement. He is focused on TWC has entered the marketplace at an of €2.7 million. Irish sales jumped drama- directing TWC forward and ensuring exciting, yet increasingly competitive tically from €9,500 in 2012 to €907,000 in continued success. He remarks: ‘We’ve time, with plans for up to 20 new 2013. Even more impressive were the come a long way but we’ve so much distilleries across Ireland. This includes overseas revenues, which grew by €1.6 more to go. Let’s keep going.’ It runs Dublin Whiskey Company and Alltech, million within a year (€143,500 to €1.8 counter to Jack’s forward-thinking both of which plan to build distilleries in million). TWC reported that 32% of sales approach, but nonetheless the questions Dublin City, with the former set to open were European and 34% were worldwide. should be asked: What drove Jack to two doors away from TWC. Jack and his In 2014, TWC was one of 10 pursue this high-risk venture? How have team must fund whiskey production with competitors worldwide shortlisted for the Jack and the team created this new sales of existing stock. This is a long- ‘Overall Boutique Distiller of the Year’ business, which already includes an term cash flow challenge that Jack hopes award at the International Wine & Spirit international whiskey brand, within three to alleviate with revenue generated from Competition. Teeling Single Grain years of start-up? See overleaf for Teaching Note

ENTREPRENEURSHIP AND INNOVATION Vol 16, No 3 221 Case study – Teeling Whiskey Company TEACHING NOTE • ignite discussion surrounding the (i) Opportunity evaluation ‘nature versus nurture’ debate in It is the role of the entrepreneur to entrepreneurship; determine the potential of an opportunity • emphasize the importance of prior and, based upon this evaluation, the 1. Case synopsis knowledge in opportunity recognition amount of time and effort spent exploit- (Shane, 2000); and This case study examines the origins of ing it (Spinelli and Adams, 2012). Jack • consider how family involvement in a Jack Teeling’s new whiskey start-up, the surveyed the market trends both in Irish business shapes entrepreneurial Teeling Whiskey Company (TWC). whiskey and in other spirit categories. He action. Following the sale of his father’s whiskey developed good consumer insight during distillery (Cooley Distillery) to a large US his time at Cooley, where he noticed an company (Beam Inc), Jack founded TWC increase in millennials consuming Irish in 2012. TWC is a boutique family-owned 3. Discussion questions whiskey. One of TWC’s main consumer business run by Jack, his brother Stephen, (a) Using the Timmons Model of the groups is millennials (the 21–35-year-old and Alex Chasko. All three Entrepreneurial Process (Spinelli demographic). worked at Cooley Distillery where they and Adams, 2012), can you identify Jack also noticed a revival of urban accumulated extensive knowledge and the factors that led to Jack and his whiskey distilling in locations such as experience of whiskey distilling and team creating this international, fast Brooklyn and London. He noticed the selling. growing venture? lack of craft distilleries in Dublin, which TWC was funded by proceeds from (b) Can you identify the prior knowl- provided him with an unexploited gap in the Cooley sale, its whiskey stock was edge and experience that influenced the marketplace. acquired from Cooley, and Jack used his Jack’s perception of opportunities in contacts from Cooley to establish the world whiskey market? (ii) Resource assembly international routes to market. The start- (c) Is TWC a typical start-up? up occurred in the context of accelerating The Timmons Model advocates using the (d) Based on this case, would you global sales in the Irish whiskey cat- least amount of required resources, a involve your family in your new egory, reported to be the fastest growing process referred to as bootstrapping. start-up? drinks spirit in the world (sales have Accomplished entrepreneurs adopt (e) Is it ‘nature or nurture’ that explains grown from 1.5 million cases annually to ‘ingeniously creative and stingy strate- Jack’s entrepreneurial activity? 6.2 million cases annually over the past gies’ for resource attainment and usage 15 years – to 2014). In light of this (Spinelli and Adams, 2012). Jack applied opportunity, there are plans for up to 20 this bootstrapping mentality when Irish whiskey distilleries to open 4. Case analysis acquiring resources for TWC. The nationwide in the coming years. Jack has purchasing of whiskey stock from Beam sought to differentiate his offering to the (a) Using the Timmons Model of the Inc was a prerequisite for TWC’s trading Irish whiskey category through product Entrepreneurial Process (Spinelli operations. Jack remarked: ‘That innovation. and Adams, 2012), can you identify [whiskey stock] has proven to be a While only in its third year of the factors that led to Jack and his critical element in having a tangible operation, TWC has made impressive team creating this international, fast product, driving revenue for the com- revenues to date, most of which are from growing venture? pany and helping us fund what we’re international sales. What drove Jack to doing now’. pursue this high-risk venture? How have TWC’s fast track to success is explained Other forms of efficient resource Jack and the team created this new by the combined impact of both internal gathering involved seeking investment business, which already includes an and external forces upon the company. from family members, maintaining a international whiskey brand, within three Students should take into consideration small team sufficient for initial growth, years of start-up? TWC’s pre-incubated nature: that is, a and utilizing a warehouse at Cooley as a venture with a product set for market, a maturation facility. Jack dealt with many business plan and a legally constituted international distributors during his time 2. Learning outcomes company prior to operations. Drawing on as managing director of Cooley. He was the Timmons Model of the Entrepre- able to utilize his contacts to provide The key objectives of this case study are neurial Process (Spinelli and Adams, TWC with routes to foreign markets and to: 2012), we can apply the three factors build the company’s exports. The TWC • illustrate how social, contextual and central to a successful venture – (i) team found a solution to its limited organizational factors help explain the opportunity evaluation, (ii) resource advertising revenue by utilizing social

origins of new ventures; more assembly, and (iii) team creation – to the media platforms and endorsing its specifically, the case allows students TWC case study. Jack identified four key products through promotional events. to explore whether entrepreneurs are factors to TWC’s success: developing This thinking aligns with BrewDog plc, a organizational products rather than consumer insight, a changing industry, Scottish beer-brewing company that purely independent, solo entities efficient resource assembly and utilizing adopted online marketing tools and (Freeman, 1986); Cooley connections. clever promotional tactics in place of a

222 ENTREPRENEURSHIP AND INNOVATION Vol 16, No 3 Case study – Teeling Whiskey Company conventional advertising campaign knowledge of markets, prior knowledge various ways. First, TWC is what is (Smith et al, 2010). of ways to serve markets, and prior described as pre-incubated or ‘ready to knowledge of customer problems’. The be developed’. The idea of starting a (iii) Team creation TWC team has a strong grasp of the first business at a kitchen table with an An entrepreneurial team is central to a two types of knowledge. independent resource assemblage is a business striving for accomplishment, When at Cooley, Jack developed an notion that is not realistic for many according to the Timmons Model. Jack expansive knowledge of the whiskey entrepreneurs: as Freeman (1986) states: has a proficient management team at market. He became aware of an interna- ‘entrepreneurs often are organizational TWC. Jack and Stephen Teeling and tional revival in urban distilling which products’. To get off the ground, TWC Alex Chasko have extensive knowledge led him to notice an unexploited market needed significant seed capital and most of distilling and selling whiskey. Access opportunity for an Irish whiskey importantly a product for the market. to industry professionals is essential for marketed as a ‘Dublin’ whiskey. Jack Since whiskey requires at least three any business. For TWC, Jack drew upon also noticed the increased interest in craft years to mature, there was no ready- a valuable network he had developed distilleries and the beginnings of market made TWC whiskey for sale. Jack during his time at Cooley. One example segmentation within the Irish whiskey Teeling brokered a deal with Beam Inc to of networking was the recruitment of industry. Jack knew his company could purchase 16,000 barrels of aged Cooley Alex Chasko who worked at Cooley not compete with the large-scale whiskey. The start-up was funded by the Distillery where he led projects in operations of big competitors, so he share of the Cooley sale allocated to Jack innovation. The TWC management team focused on segmenting the market. This and Stephen and by family members who will need to implement effective strategy is similar to that of Pelcor – a bought company shares. delegation and leadership skills once traditional cork production company in Second, the company is characteristic team expansion occurs. Accordingly, the the south of Portugal – which targeted of a ‘born global firm’, with a growth role of the entrepreneur as ‘a pacesetter specific consumer groupings so as to trajectory that has been primarily export- and culture creator’ is essential to the differentiate itself from the large driven. At the end of its second year of team’s development (Spinelli and international fashion brands (Carvalho trading, international turnover was Adams, 2012). To date, Jack has shown and Williams, 2014). double that of domestic turnover. Jack clear vision and a drive for future The TWC team has a comprehensive had access to international distributors business growth while referring to knowledge of ways to serve markets. On from Cooley which provided a route to TWC’s success in collective terms. the marketing side, Jack and Stephen multiple export markets. have expertise in business management, Third, TWC is a family affair, which Recommended reading: sales and marketing, global marketing presents unique opportunities and Spinelli, S., and Adams, R. (2012), New and finance. Alex Chasko’s skill set challenges for the business. Venture Creation – Entrepreneurship for ranges from whiskey distilling operations the 21st Century, 9 ed, McGraw-Hill/ (d) Based on this case, would you Irwin, New York. to product innovation. As a former involve your family in your new managing director of a public limited (b) Can you identify the prior know- start-up? company, Jack is accustomed to a ledge and experience that influenced leadership and managerial role. Stephen When answering this question, students Jack’s perception of opportunities in was Global Retail Manager at Cooley should give consideration to both the the world whiskey market? and then Senior Global Brand Manager merits and drawbacks of family involve- When answering this question, students for Irish Whiskey at Beam Inc. TWC’s ment in a business. There are significant should review key milestones in Jack’s Chief Technical Officer, Alex Chasko, advantages to being a family-centred life which led to TWC’s establishment. It was a manager at Cooley Distillery, business. may be of help to number these events in where he oversaw projects and innova- Family involvement in business can order of relevance to Jack’s opportunity tion at two distilleries. activate entrepreneurial thought and perception. The influence of Jack’s Jack possesses an understanding of action. Jack’s time in his father’s father, the establishment of Cooley, the issues within the Irish whiskey business inspired him to look at the Jack’s academic qualifications, his varied industry, such as the lack of choice, whiskey market for business opportuni- professional roles and his movement innovative flavourings, and premium ties. The sale of Cooley was further through the ranks in Cooley were all whiskey offerings set at the €30–€50 motivation for Jack to pursue his own important factors in the set-up of TWC. price range. Jack’s well developed venture. In addition to knowledge and experience, perspicacity stems from over a decade of Family involvement constituted major Jack’s education and multiple professions previous experience in the industry. financial support to Jack in establishing provided him with the self-confidence Therefore, the knowledge Jack gained at TWC. In 2012, company shares worth and motivation to pursue his own Cooley was invaluable for perceiving €1.3 million were bought by Jack, entrepreneurial endeavour. opportunities within the world whiskey Stephen, their parents and their sister. In Shane (2000, p 452) claims that there market. addition to financial backing, family are three forms of prior knowledge members may provide emotional support (c) Is TWC a typical start-up? conducive to the discovery of an to those in pursuit of entrepreneurial entrepreneurial opportunity: ‘prior TWC’s start-up model is unusual in opportunities.

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Another advantage is the usage of firm, Cooley Distillery, and that Jack the venture creation process. This case family branding, which is particularly accumulated a wealth of experience, is of particular relevance to beginners’ beneficial when marketing a heritage knowledge and networks at Cooley that level undergraduate students due to the product. The Teeling family tradition of allowed him to establish and run TWC. distinct examples of entrepreneurial whiskey distilling affords the company a Based on this case, there is substantial thought and action presented throughout. degree of authenticity and proficiency, evidence that some entrepreneurs are By drawing on the Timmons Model of more so than a company with no ‘nurtured’. We can acknowledge that Jack the Entrepreneurial Process (Spinelli and associated whiskey experience. possesses the well recognized characteris- Adams, 2012), students can examine the Involving family in one’s business can tics of an entrepreneur, some of those case in relation to the three critical cause difficulties to arise. Tension can being: determination, confidence, risk elements for entrepreneurial success: emerge when major business decisions taking and realism. However, it can be opportunity evaluation, resource take effect. For example, John Teeling, argued that these characteristics were assembly and team creation. The case Jack’s father, has stated that his sons fostered and developed through the raises good conversation points which were very upset at the sale of Cooley educational, professional and family are conducive to open discussion in Distillery. The continuation of family environments to which Jack was exposed. class. A secondary aim of this teaching values can be both a hindrance and a On the other hand, there is a case for case is to ignite students’ interest in benefit to company growth. In the case the ‘nature’ explanation of entrepreneur- entrepreneurship, particularly in the of TWC, the brothers acknowledge the ship. Shane (2010) argues that genetics context of family business. ‘family tradition of quality over quan- have a substantial part to play in a We suggest the following teaching tity’. They remain respectful to their own person’s potential to be an entrepreneur: approach: provenance while adopting bold new ‘A long line of research shows that • The tutor/lecturer/facilitator provides techniques. In Cooley, Jack was limited: personality influences whether people an introduction to the issues present in are leaders or followers, whether they the case. Issues include enterprise ‘It was a family company but it like sedentary or active jobs, and even start-up, pre-incubation, family wasn’t my vision. It always had to be whether they are satisfied or unhappy business and resource gathering. If the respectful to the people that were with their jobs’ (Shane, 2010, p 24). class is two hours, we suggest that the there before. For me there was a bit of Given the fact that Jack’s father is a first hour should be dedicated to mourning when Cooley was sold but serial entrepreneur, there was an covering one or two of these topics. it did provide a blank canvas for what increased likelihood that Jack would be • In preparation for the class, students I thought was required for a new ‘genetically’ predisposed to possessing should review the case study. It is also premium Irish whiskey.’ an entrepreneurial nature. However, it is recommended that students (of the difficult to know whether Jack would legal age for alcohol consumption) In the future, share ownership dilution have left his successful career at Cooley should visit the TWC website may occur as shares are divided among and established TWC purely based on (teelingwhiskey.com), the TWC Jack and Stephen’s offspring or nieces and innate entrepreneurial qualities. Did he Facebook and Twitter pages nephews. It should be noted that TWC is need the experiences, knowledge and (facebook.com/TeelingWhiskey in the early stages of development and, as education he had acquired and the push Company and twitter.com/ yet, the main family business issues of the sale of Cooley to begin his teelingwhiskey) and watch the short (succession, governance structures, entrepreneurial career? videos posted on the TWC Vimeo wealth transfer) may not have emerged. Jack believes entrepreneurship is a page (vimeo.com/teelingwhiskey). In combined result of nature and nurture. (e) Is it ‘nature or nurture’ that explains class, students can comment on the Jack knew his independent personality Jack’s entrepreneurial activity? effectiveness of TWC’s social media was not suited to a role in which he would presence in terms of relevance to the Students can be asked to consider be micromanaged. He found managing his target audience, user friendliness and whether Jack’s recognition of an own business to be a more appealing offer interactivity. Then split students into entrepreneurial opportunity was as a than staying at Cooley where he would be equal groupings to critique the case in result of special attributes such as an subject to the controls common in multi- terms of Jack’s ability to perceive innate, heightened perspicacity national businesses. His propensity for opportunities, gather resources and (Schumpeter, 1934; Shackle, 1979) or of risk taking was one that he had developed assemble a team. An open discussion prior knowledge (Fiet, 1996; Shane, from his professional experiences, both at should ensue. Further questions to 2000; Venkataraman, 1997). Was Jack Cooley and in other companies. stimulate debate include: born an entrepreneur or does the story of TWC suggest that it is better to focus on Was Jack right to leave Cooley the social, contextual and organizational 5. Potential audience and Distillery and pursue his own factors in explaining the ‘who, what, and suggested teaching approach entrepreneurial venture? when’ of entrepreneurship? Is Jack’s entrepreneurial orientation a It is important to acknowledge that The primary aim of this case study is to result of nurture or nature? many of the resources utilized by Jack in highlight the importance of an entrepre- Is industry knowledge and experience starting TWC were supplied by his former neur’s prior knowledge for the success of enough to make a venture work?

224 ENTREPRENEURSHIP AND INNOVATION Vol 16, No 3 Case study – Teeling Whiskey Company 6. Suggested reading June, website: http://businessetc.the opportunities’, Organization Science, journal.ie/teeling-whiskey-distillery- Vol 11, No 4, pp 448–469. Audia, P.G., and Rider, C.I. (2005), ‘A 2-2115395-Jun2015/. Shane, S. (2010), Born Entrepreneurs, garage and an idea: what more does an Carvalho, L., and Williams, B. (2014), Born Leaders: How Your Genes Affect entrepreneur need?’ California ‘Case Study – Let the cork fly: creativity Your Work Life, Oxford University Press, Management Review, Vol 48, No 1, pp and innovation in a family business’, Oxford. 6–28. International Journal of Entrepreneur- Shanken News Daily (2014), ‘Hitting US Freeman, J. (1986), ‘Entrepreneurs as ship and Innovation, Vol 15, No 2, pp next month, Teeling aims to fill Irish organizational products: semiconductor 127–133. whiskey’s super-premium gap’, firms and venture capital Fiet, J.O. (1996), ‘The informational basis Shanken News Daily, 6 March, website: firms’, Advances in the Study of of entrepreneurial discovery’, Small http://www.shankennewsdaily.com. Entrepreneurship, Innovation, and Business Economics, Vol 8, No 6, pp Smith, R., Moult, S., Burge, P., and Turn- Economic Growth, Vol 1, pp 33–52. 419–430. bull, A. (2010), ‘Case Study – BrewDog: Shane, S. (2000), ‘Prior knowledge and Freeman, J. (1986), ‘Entrepreneurs as business growth for Punks!’ Interna- the discovery of entrepreneurial organizational products: semiconductor tional Journal of Entrepreneurship and opportunities’, Organization Science, firms and venture capital Innovation, Vol 11, No 2, pp 161–168. Vol 11, No 4, pp 448–469. firms’, Advances in the Study of Spinelli, S., and Adams, R. (2012), New Entrepreneurship, Innovation, and Venture Creation – Entrepreneurship for Economic Growth, Vol 1, pp 33–52. the 21st Century, 9 ed, McGraw-Hill/ Note Irish Whiskey Act (1980), Act Number 33 Irwin, New York. of 1980, s.1, website: http:// Teeling Whiskey Company (2014), ‘Teeling 1 Poitin is an age-old Irish spirit that was www.irishstatutebook.ie/1980/en/act/ whiskeys honoured as world’s best’, outlawed in Ireland in the seventeenth pub/0033/print.html. press release, 6 June, website: http:// century due to its potency. It was legalized Schumpeter, J.A. (1934), The Theory of teelingwhiskey.com/2014/06/teeling- for consumption by the Irish government Economic Development: An Inquiry Into whiskeys-honoured-as-worlds-best/ in 1997. Profits, Capital, Credit, Interest and the #.VJlVG14gH8. Business Cycle, Vol 55,Transaction Venkataraman, S. (1997), ‘The distinctive Publishers, New Brunswick, NJ. domain of entrepreneurship research: References Shackle, G.L.S. (1979), Imagination and an editor’s perspective’, in Katz, J., and the Nature of Choice, Edinburgh Brockhaus, R., eds, Advances in Bodkin, P. (2015), ‘Inside the first University Press, Edinburgh. Entrepreneurship, Firm Emergence and whiskey distillery to open in Dublin Shane, S. (2000), ‘Prior knowledge and Growth, Vol 3, JAI Press, Greenwich, in over 125 years’, The Journal, 8 the discovery of entrepreneurial CT, pp 119–138.

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