First sipped by drinkers in Eastern Europe during the 1300s, vodka has become one of the most popular alcoholic beverages in the world.

Enjoyed by millions of people, the drink is now available in a myriad of varieties and served everywhere from small local pubs to the trendy nightclubs of London and New York.

Getting a slice of this multi-million dollar market is a challenging task. Dominated by large international operators, the global alcohol industry requires more than just a tasty product. Having a strong brand and image is vital.

For Geoff Ross, the founder and chief executive of boutique New Zealand vodka distiller 42 Below, such a challenge was too tempting to miss. Having watched the rise of premium vodkas during the mid 1990s, he was determined to create one of his own.

Armed with little more than a healthy enthusiasm and some spare room in his garage, Ross began experimenting with flavours and tastes. Within months he had created what he thought was a world beater - 42 Below vodka.

Named after the location of the company’s original base (Wellington is on the 42nd parallel below the equator), the vodka quickly developed a loyal following in New Zealand. Soon, the company started experimenting with flavoured varieties and quickly began seeking out export markets.

In October 2003 the company listed on the New Zealand stock exchange and now enjoys projected annual revenues of more than $15 million. Products are exported to happy customers in Europe, the United States and Australia. More than 50 per cent of revenues now come from export sales.

In early 2005, 42 Below decided to implement SAP Business One, in order to support exponential growth and customer management processes. Until that point, the company had relied on a MYOB accounting package and a diverse range of manual processes that had been put in place as operations grew. “It wasn’t easy to create a successful brand from scratch,” said company chief financial officer Stephen Sinclair.

“Our budgets were small, so we relied on personal contact and techniques like viral email marketing, which worked well for us.”

By establishing an enthusiastic network of sales representatives in key markets, 42 Below reps were able to visit clubs, hotels and bars on an individual basis, promoting the 42 Below vodka range as well as the company’s premium gin range called South.

“About 12 months ago, we realised our systems were no longer coping with our growth and so knew it was time to replace them,” said Sinclair.

“We were becoming a victim of our own success. We conducted a review of the leading packages on the market before selecting REALTECH and SAP Business One," he said.

“We chose SAP Business One as SAP’s reputation and long-term record appealed to us,” he said. “We knew they would continue to develop the product over time and would give the support we needed going forward, which was very important for us.”

Working with implementation partner REALTECH, 42 Below transferred all the data from MYOB and worked to automate many of the manual internal systems that had been in place for years. The new system went live on April 1.

“The changeover was very straightforward,” said Sinclair.

“REALTECH’s experience and knowledge helped us to migrate quickly and painlessly.”

Early benefits brought by SAP Business One include vastly improved stock control systems and the ability to reconcile items automatically.

“We have stock at various locations around the world and we can now track levels easily through the system,” he said. “Everything is now done within SAP.”

The company’s growing international business has also benefited as foreign currency transactions are handled automatically, removing a previously complex and time-consuming manual task.

“We also operate foreign currency accounts in the US and Australia, and I can get a real-time view of how things are going whenever we need it,” he said.

Sinclair said SAP Business One also allows the company to generate profit and loss reports on a market-by-market basis, which is really important when monitoring activity and spend. “This is an extremely competitive business. You need to understand exactly where you are at in each market as they are all very different.”

In the future, 42 Below plans to use SAP as an interface with its contract bottling company, streamlining the order and billing processes. Sinclair believes there will be other areas in which SAP Business One will also provide improved efficiencies.

“For example, we use SAP as part of our automatic email customer ordering system which saves a lot of time,” he said. “We will do more things like this.”

Overall, SAP Business One has provided 42 Below with a sophisticated and scalable platform that can support the company’s aggressive growth plans. The taste of New Zealand-made vodka will be enjoyed by even larger numbers of people as a result.

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