Podcasts classical CFO THOUGHT LEADER 662: A Thirst for Innovation | Dynshaw Italia, CFO, Soldo

662: A Thirst for Innovation | Dynshaw Italia, CFO, Soldo

Published: Jan. 3, 2021, 11 p.m.

When innovation is a topic for discussion, Dynshaw Italia can\u2019t resist mentioning Cobra Beer\u2014or, to be more specific, \u201cthe big bottle.\u201d

It was Cobra, of course, that first opted to forgo the UK\u2019s standard 500\u2013550 ml beer bottles and introduce an ever more generously proportioned 650 ml vessel.

\u201cCobra was all about doing things differently and better and, as a result, changing the marketplace,\u201d explains Italia, who recalls that Cobra\u2019s big bottle strategic insight had to do with the willingness of UK diners to share their oversize beverage with others at their table. \xa0

\u201cBecause they were sharing the bottle, it would be kept on the table. As a result, customers entering the restaurant would see all these tables having a bottle of Cobra, and it was like free advertising,\u201d continues Italia, who served as group CFO for the popular UK beer brand from 2003 to 2010 as it continued to flummox its beer rivals by touting the brew\u2019s premium recipe while outsourcing the actual brewing and distribution processes.

\u201cCobra was about creating a premium brand with high gross margins that would eventually fit inside a larger brewery portfolio\u2014one that had their own production and own distribution,\u201d notes Italia, who credits Cobra\u2019s culture of innovation with having routinely led him to explore creative ways to generate working capital.

\u201cI learned that every single asset on your balance sheet could create and generate cash for working capital, whether it was stock or debt\u2014you could even get financing against your rent deposit,\u201d remarks Italia, whose working capital resourcefulness proved to be a good match for Cobra\u2019s entrepreneurial founders.

In the end, Cobra\u2019s appetite for growth (and escalating debt) led its founders to seek deeper pockets, so in 2011 Cobra Beer Partnership Limited was formed as a joint venture with Molson Coors\u2014which allowed the Cobra brand to achieve a \u201cfit\u201d inside a larger brewery\u2019s portfolio.\xa0\u2013Jack Sweeney