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

When innovation is a topic for discussion, Dynshaw Italia can’t resist mentioning Cobra Beer—or, to be more specific, “the big bottle.”

It was Cobra, of course, that first opted to forgo the UK’s standard 500–550 ml beer bottles and introduce an ever more generously proportioned 650 ml vessel.

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

“Because 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,” 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’s premium recipe while outsourcing the actual brewing and distribution processes.

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

“I learned that every single asset on your balance sheet could create and generate cash for working capital, whether it was stock or debt—you could even get financing against your rent deposit,” remarks Italia, whose working capital resourcefulness proved to be a good match for Cobra’s entrepreneurial founders.

In the end, Cobra’s 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—which allowed the Cobra brand to achieve a “fit” inside a larger brewery’s portfolio. –Jack Sweeney

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