Friday, December 05, 2008Local Brands Gone Global

Kaletha PattersonThe Moorings, Harneys, HIHO, AMS Group and Pussers Set Out to Conquer The World

Oftentimes when people think of brands, they think of consumer products and merchandising. They think of the cougar emblazoned on the side of PUMA sneakers, the Nike Swoosh, the silvery white swirl plastered on the side of red Coca-Cola bottles or the bright yellow McDonald’s arches which have ostentatiously projected their hamburger hamlet across the world. These examples are some of the best branding examples because the symbols themselves are recognizable without the need of the written word to explain. Their brand is carried in the identification of their logo. Corporate branding generally may not have the same brash or colorful elements as seen in other industries, but it is nonetheless equally important.

To illustrate how recognition and branding have sauntered onto the shores of the British Virgin Islands, we examine the brands of locally based businesses and how they’ve taken small steps to make large impacts around the world, and how these brands have helped to position ‘Brand BVI’ globally.
The BVI today has an economy and tax base that supports an annual budget well north of quarter of a billion dollars and an estimated per capita income of over $40,000. For a population of approximately 30,000 this is quite an achievement, one that took place in a little more than a generation.

During this period of sustained growth, a number of BVI based entrepreneurs and companies have developed brands which have not only experienced sustained growth in the territory but have also expanded into the global marketplace. This global expansion has brought the territory significant goodwill, positive public relations and has assisted with ‘Brand BVI’ recognition internationally, which has in turn helped to deepen the territory’s penetration in the global marketplace for its tourism and financial services products.

Business BVI wishes to recognize these brands and share with our readers their evolution and growth and how they help in the collective effort to grow ‘Brand BVI”. These companies are: The Moorings, Harney’s, HIHO, AMS Group and Pussers.

The World's Premiere Yachting Brand

Central America, the South Pacific, the Mediterranean and the Eastern Caribbean each share a commonality that’s more far reaching than sparkling blue waters, exotic destinations and beautiful people; each one of these fabulous locations has been credited for offering the best in luxurious water sports.

Mexico has been listed on many charts for its spectacular reefs and scuba diving, Hawaii is frequently credited for its phenomenal surf and the British Virgin Islands is repeatedly ranked very high for its superb sailing opportunities – an achievement due in no small measure to The Moorings.

“The Moorings has been positioned as the premiere charter brand in the world. It’s still considered as the best,” said Lex Raas, CEO of The Moorings. “We see the BVI as the place everybody goes to, not once but quite a few times. People may visit our other bases but they all tend to return to the BVI because it’s so fantastic down here for this sort of product.”

Established in 1969 right here in the BVI, The Moorings firmly established their operation throughout the Caribbean market before becoming an international powerhouse and the lead sailing brand. Housed under European-based TUI Travel PLC, a leading international leisure travel group and the biggest travel group in the world, The Moorings is positioned at the top-end of the bareboat business by offering its customers the newest innovations from world class yacht builders, superior customer service and an opportunity to experience some of the most exquisite sailing locations in the world. Sister companies Sunsail and Footloose are also managed by TUI.

Over the past ten years, The Moorings has excelled in focusing on catamarans. “The Moorings wasn’t the first company to have cats, but they were the first company to develop the catamaran into the ideal product for the charter business,” Raas explained.

Of the more than 200 yachts located in the BVI, they are designed for families and large groups seeking to enjoy a tropical vacation at sea. The catamarans provide tons of space, an ease for jumping in and out of the water and on top of those features, they’re very comfortable. Another notable feature is the galley which was intentionally placed on the upper levels for group activities and social gatherings.

The Moorings has solidified itself as a premiere brand within the BVI as well as globally by remaining consistent and focused on exceeding their customer’s expectations. Customers booking through The Moorings are also sailing relatively new vessels, as yachts are kept no longer than five years – and all yachts are maintained to the highest standards. “Every boat is owned by an investor and the vast majority wants to be in the BVI,” Raas explained, adding why the BVI is such a viable option for these owners. “When you’re investing half a million dollars into a boat you want to know that it’s safe and that the laws of the country are conducive to sailing activities. People have so much confidence in the country, they’re very happy to invest here.”

The largest boats within their three divisions include a 65 foot crewed yacht, a 51 foot bareboat and a 47 foot power yacht. In the U.S. market, The Moorings also ranks number one with regard to revenues whereas Sunsail ranks number one in the United Kingdom in terms of volume.

The company is a key contributor to the BVI through its employment of over 250 individuals with the combined brands of Sunsail and Footloose. Together they are responsible for bringing an estimated 55,000 overnight visitors annually to the British Virgin Islands. Raas said he’s always been proud of providing BVIslanders an opportunity to work for The Moorings and emphasizes their importance to the establishment. “We’ve got some really great people down here. That’s what makes the business. The BVI sets the standard for the rest of the world for us.”

The BVI’s very own Clarence Malone; Director, of TUI Marine Tortola, can attest to The Moorings’ interest in hiring locals. He started working for the company in 1978 as a dock assistant, cleaning boats and by 1999, his on the job training and diligence paid off by earning him a promotion to Director of Bareboat Operations. “A lot of BVIslanders have worked at some point in time for The Moorings,” Malone stated. “I think one of the good things about The Moorings is the longevity you find with the employees. It speaks volumes.”

The Moorings heavily supports the twin pillars of the BVI’s economy. According to Raas, customers from The Moorings spend a significant amount of money in the Territory; either through food purchases and provisions, restaurant dining or by renting fishing gear, he says their money is a constant flow into the economy. The yachts play a critical distribution role taking tourism business to many of the smaller islands such as Jost Van Dyke and Anegada.

One third of The Moorings global fleet is based in the BVI and roughly 40% of their business is generated here. The remaining boats are scattered around the world stretching from the ports of St. Lucia and St. Martin to the Mediterranean shores of Turkey and Greece. There are also small bases in Seychelles and Tahiti to name but a few of the 28 worldwide destinations, and Raas says they’re planning to establish a presence in the Far East in the near future.

Although The Moorings has been able to capitalize on its strengths and continues to support the ‘Brand BVI’ globally, there are several challenges. According to Raas, those challenges involve how the BVI decides to continue to position itself in the global tourism market. “We need to be careful not to allow it to become a cheap destination,” he said. He raised concerns of the BVI falling into the trap which many other destinations in the world have succumbed and emphasized the importance for the BVI government to determine who will be allowed to operate on these shores. That decision will affect the type of customer who visits the destination and their attendant level of spending in the BVI.

Malone also shared his perspective on what he views as challenges. “We also have to look at some of the development going on in the entire BVI and the situation regarding sewage. We still don’t have a national program that addresses this. Until we address this situation, [tourists] will refuse to come back to the BVI.”

Aside from its high end charters, The Moorings brand continues to support the BVI environment and non-profit causes. It has donated thousands of dollars annually to the Virgin Islands Search and Rescue (VISAR) organization and has sponsored the Chief Minister’s Cup. Over the past two years, The Moorings has partnered with the Department of Youth Affairs and Sports and established a sailing programme for primary schools students throughout the territory. The programme is designed to introduce the territory’s youth to the world of sailing. Through their green initiatives, they’re also proactive in developing programmes designed to protect the natural environment of the territory.

Raas maintains that the BVI is a premiere destination and a great brand on its own. “We always say, as goes BVI so goes The Moorings. It’s our number one destination. It’s our number one business. It’s a very, very important location to us.”

Harneys - An Establishment Unlike any Other

In the late 1970’s, a small law firm founded by three men on Tortola, British Virgin Islands was an entity serving a select group of people throughout the Caribbean. Today, it is a law firm whose recognition stretches far beyond the shores of the British Virgin Islands and well into the halls of law schools, competitor’s cubicles and into the meeting rooms of the movers and shakers the world over.

In the beginning stages, the firm, founded by Harold Harney and later joined by Neville Westwood and Michael Riegels, was a small entity that quickly grew and perhaps unintentionally set the foundation for their international image and appeal. Over the years, the Harneys brand has created a leading stance in the areas of banking, finance, corporate and commercial services, trusts, wills and estates and intellectual property.

“I think that the BVI has been on the map from the early days of offshore financial services. We are the largest offshore corporate domicile in the world,” Aleksandra Hirst, Harneys Director of Development and Marketing highlighted while describing the firm’s strong reputation. “In independent directories where directories ask clients to rate businesses, Harneys continues to be ranked in the top tier of law firms.”

The clientele and target audience for Harneys is also very specific. Unlike promotional messages in some industries, the offshore financial services market is quite clearly defined and relatively easy to reach. “You know which groups are buying offshore companies and using offshore vehicles and you can target them. In Hong Kong, BVI companies are so ubiquitous that an offshore company is often known simply as a ‘BVI’,” Hirst expressed.

The firm’s business is primarily international financial services related, and some of its partners were involved in the development and subsequent evolution of the International Business Companies Act (IBC). An Act to provide for the Incorporation, Registration and Operation of International Business Companies facilitating Harneys Corporate Services in providing the incorporation of British Virgin Islands companies and a complete range of post-incorporation corporate services.

With offices in Anguilla, London and Hong Kong, Harneys is strategically situated to offer services in these global locations through a staff that is highly adept at meeting the needs of their clientele. The attorney’s keen knowledge of BVI law allows them to facilitate individuals, leading law firms, corporations and financial institutions. To extend upon their resume even further, newly hired staff is equipped to provide linguistic assistance in an array of emerging markets, to clients who speak Portuguese, Spanish, Russian and Chinese.

Harneys headquarters are based in the BVI and their entry into the Cayman Islands market in September 2008 is proof of their continued success.

While many people associate the BVI as an island providing similar banking services as the Cayman Islands and Bermuda, Richard Peters, Harneys Managing Partner, said it’s a misconception to think of the BVI as an epicentre for banking. “BVI companies are often used for financing purposes so big companies set up a finance vehicle in the BVI. It’s a finance centre in a sense that companies are used for finance matters but not banking in the BVI.”

Harneys has also served as a vessel for branding the Territory. “The BVI is the foundation of our business and the core message we send out,” Hirst highlighted while indicating the firm’s goal to bring business to the BVI. “Our role primarily and our marketing focus for many years was to push the BVI brand rather than to push the Harneys brand. Now the jurisdiction has its own marketing arm, the IFC, to fill that role, and that, along with increased competition within the jurisdiction, has meant a shift in focus to raising brand awareness of Harneys.”

Regarding the firm’s internal affairs, there is a very extensive training program to assist employees, especially Belongers who are interested in obtaining qualifications within the legal profession.

“Harneys has always been a very BVI focused business,” Hirst outlined. Although the volume of lawyers needed to fill the firm’s needs far outweighs the availability within the BVI’s local pool, the majority of senior management derives from the BVI and is significantly involved with growing the Harney’s brand.

A large percentage of the firm’s attorneys also derive from within the Caribbean region and of the 200 persons employed globally, roughly 185 are located in the BVI – a feature Peters recognizes as being beneficial to the stability of the Territory.

Aside from their corporate and legal services, the firm is involved in community outreach programs through their philanthropic support and adoption of the Francis Lettsome Primary School. In 2007, employees participated in teaching computer science to the students and in donating funds and equipment to the institution. “We see this as a very important part of our role in the BVI. As one of the larger private sector employers, it is important that we contribute and give back to the community,” Hirst shared.

Part of a company-wide effort to elevate the level of corporate consciousness for going green has allowed the legal side of the firm to become entirely paperless.

Hiho - Local Apparel with International Appeal

When someone sheds light into the potential success of your company, it would be wise to seize the opportunity to make it golden.

Andy Morrell, Owner and Chief Executive Officer (CEO) of HIHO, saw this light and heeded this particular advice years ago when one of his sponsors suggested he expand his island t-shirts into a full-fledged clothing line. Shortly after pondering the idea, he formulated a plan of action that would eventually propel his clothing company and his brand into the forefront of the Caribbean associated apparel market.

HIHO is a British Virgin Islands based brand and Retail Company that sells a host of products made for men, women and children designed on the premise of a relaxing Caribbean lifestyle. They make island chic clothing which consists of dresses, board shorts, dress shirts and Lycra tops.

When Morrell first entered the apparel industry, he sold one t-shirt style from a space in his mother’s storefront on Tortola. The popularity of that shirt created a brand that now includes clothing, jewelry and a soon-to-be launched home collection of pillows, candles and other goods. “We’re selling a lifestyle. We’re selling a dream,” Morrell highlighted when talking about his brand.

Initially a novice to the apparel business, Morrell sauntered HIHO onto the clothing scene with much the same energy and drive he used to enter the windsurfing competition that introduced him to the sport in the 1980s.

The name HIHO derives from an abbreviated windsurfing term known as ‘Hook In Hold On’; a duty windsurfers perform every time they mount their boards. As a former winner in the same 1986 ‘Hook In Hold On’ windsurfing competition which he later purchased, Morrell shortened the event name to HIHO due to its catchy acronym.

After being stagnant for several years, Morrell re-launched the event in 1993 with a promotional t-shirt that inevitably became the foundation for his line of clothes. “Our brand HIHO is a spin-off from the annual Highland Spring HIHO event which we run every summer,” he said.

By the mid-1990’s Morrell started placing logos on his shorts and in 1999 opened a shop similar to a surf shop. As the year 2001 approached, he began outsourcing his shirts to workers in Brazil whose beach styles influenced the creations for his line of clothes.

When Morrell realized how extensive his business could become he began to draw capital and secure designers within a period roughly over the past five years.

These days, the tiny shop from the past, has become a hit retail shop for upscale tourists and islanders favoring the HIHO style and brand.

There are two HIHO stores in the BVI, two franchise stores in the Caribbean – one in Antigua and Curacao – and a third location is set to open on the French island of St. Barth’s in November 2008. There are also wholesale distributions to stores on Cooper Island, Jost Van Dyke and Antigua.

Morrell says he wouldn’t claim HIHO as the leader for Caribbean beachwear, but he says they’ve done a great job identifying them as a brand that represents the Caribbean. “Our brand underscores our Caribbean heritage and our roots. Our heritage and our authenticity is really important to us.”
Morrell is a lifetime Tortola resident whose love of country has synergized his efforts to place his company and Tortola on part of the international apparel map.

He has seven employees working for him in the BVI with a sales force comprised entirely of BVI Islanders. “Our employees are our brand ambassadors,” he highlighted. Seventy percent of his business is generated in the Territory and although his staff is on a smaller scale than some other local retail operations, his workers are directly involved with growing HIHO into a global presence.

The HIHO hangtags stress the brand’s Caribbean roots and a lot of the clothes contain maps printed on the inside. “This is the essence of our brand,” Morrell continued.

From the environmental perspective, HIHO t-shirts are now made of recycled cotton grown in Bolivia. A factor that Morrell says is important for becoming more sustainable. “We’re fastidious about designing clothes well and finding the best materials we can.”

The brand is not solely designed to promote the BVI but rather aimed at promoting the entire Caribbean. Morrell says his clothes represent island living and he is conscious of the exposure his brand would bring to the BVI once the U.S. market has been tapped – an objective he’ll accomplish through the opening of a new distribution centre in the fall of 2008. “If we’re able to grow the brand in the states, there’s a huge potential to promote the BVI.”

Along the way to success, Morrell has overcome challenges in growing his brand. There has been swimwear that never sold and communications glitches to overcome. Nevertheless, the HIHO brand continues to garner global attention through one of the biggest windsurfing events in the region and Morrell continues to adhere to the course he outlined a decade ago.

A Leading BVI Service Provider with a Global Focus

The AMS Group is a leading offshore financial services firm. The Group’s expertise covers company formations including post-incorporation work, fiduciary services, the administration of trusts, the management of companies, the establishment and administration of registered BVI funds, and the management of captive insurance entities in the BVI and Nevis.

London-based Marketing Manager for the Group John Adie understands the pivotal role AMS plays in the offshore financial and corporate services market, and explained the Group’s development.
Based in the British Virgin Islands and employing around 40 people locally, The AMS Group is one of the oldest companies in the BVI, having started its life 26 years ago as a small bookkeeping and accounting firm. Once the IBC act commenced, The AMS Group registered for incorporations and obtained a license in trust administration and has since grown to its position today.

To coincide with its 25th anniversary in 2007 The AMS Group updated its global brand, including modernizing the original logo and producing a new range of corporate literature as well as a new website. Mr. Adie said the reinvigorated brand has a fresher and more modern feel, and will provide the background for the Group’s continued growth and client focus over the next 25 years. The website address, “amsbvi” simultaneously promotes the Group and the BVI, and positions AMS as an easy-to-recognize face in the market.

In 2008, The AMS Group was again named in the top ten captive insurance managers worldwide and the BVI remained the fourth largest captive insurance domicile worldwide. AMS’s global presence includes offices in Hong Kong, Nevis and London, along with a key joint venture adding a further three offices in Taiwan. The Group continually seeks opportunities to expand into other markets, with growth efforts centering on promoting the BVI worldwide as a premier financial services jurisdiction.

The vast majority of the AMS Group’s business comes from outside of the BVI, and “the right mix” of products combined with an exceptional level of service means both AMS and the BVI will remain competitive and prominent in the global offshore arena,” Mr. Adie commented.

The AMS Group contributes to the ongoing success of the BVI brand through public speaking engagements and industry magazine articles. “We continually go out and promote the BVI, the brand of the BVI,” Mr. Adie noted. He said that AMS was a regular contributor to programmes at BVI House in London, including an in-depth seminar to young lawyers on the benefits of the BVI as a well-regulated offshore jurisdiction.

The AMS Group brings managers and representatives from its global offices to the BVI for regular meetings and conferences. Mr. Adie said, “This constantly raises awareness within the Group of the BVI’s strengths and capabilities and, of course, it contributes in a small way to the Territory’s economy!”

The BVI's Rum Extraordinaire

How does onE turn a rum product exclusively marketed to the British military into one of the biggest international spirits sold around the world?

One needs only to ask Charles Tobias, the brainchild, founder, creator, entrepreneur, world nautical explorer and self-taught jack of all trades, how he achieved such global awareness for this and his other products.

As the CEO of Pusser’s, Tobias has created a huge global brand that consists of Pusser’s Rum, Pusser’s Landing (retail shops and accessories) and several restaurants. In a period of almost 30 years Pusser’s has catapulted from a popular navy spirit into a multi-million dollar, international success story from the very shores of the British Virgin Islands.

Pusser’s rum is not only legendary, it appears to be timeless. Part of a resilient brand beginning 300 years earlier for sailors and navy personnel off the Atlantic and 64 years ago for a man garnering his first taste as a boy during a welcome home ceremony for his father returning from the war; Pusser’s rum is attached to many ancillary products such as the drinking mugs, cups, flags, pennants, t-shirts and handbags.

The Pusser’s brand grew from a barely known entity to a commercial brand after Tobias purchased the rights and all the blending information from the Admiralty. In 1979, Pusser’s Ltd. was born on Tortola in the British Virgin Islands. One year later, the public was able to experience this commodity on a first-hand basis.

Known as a ‘single malt of rum’ it is still produced through some of the most genuine methods and contains no artificial ingredients. “The brand has a great story and we get a lot of free mileage because of its history. There’s no spirit in the world that has the documented history that Pusser’s has. Pusser’s is the father of grog; known in the sailing world as Nelson’s Blood,’ Tobias explained. “Of all the brands, food and beverage wise, we’re known more around the world than any other brand as sailors and boaters.”

Tobias’s dedication in learning the business of production, design, advertising, marketing and distribution are some of the main factors behind the success of his brand. The second part of the brand lies within Pusser’s West Indies – an entity comprised of stores and restaurants.

In relation to the BVI, Pusser’s has brought a significant amount of attention to these islands. “When people think of the BVI, a lot of them think of Pusser’s. The Pusser’s Painkiller is sort of the official drink of the BVI and its spread around the world,” Tobias highlighted. “We have a line of apparel that is ours. We don’t buy things in private label. We actually do these ourselves. We manufacture the fabric, we design the goods, we do the cut mark and trim, and then we sell them.”

Today, roughly 600 people are directly employed by Pusser’s with operations in the United States, Canada, New Zealand, Australia, Malta, Hong Kong, Great Britain, Germany and most recently, Gibraltar. Plans to penetrate the Scandinavian market are currently in process.

A little over a third of the employees are based in the BVI where at least 20% of the business is generated and Tobias says their involvement is critical to the global success of the brand. “What we do here goes to the rest of the world. So they’re very much involved at the epicenter of things because all things happen here.”

In regards to contributing to the BVI’s pillars of finance and tourism, he says Pusser’s makes a vital contribution to the economy through taxes, import duties and payroll while creating an extraordinary experience of shopping and dining for the overnight tourist or cruise ship guest.

Aside from the U.S. Virgin Islands and the Dutch side of St. Maarten, Pusser’s has yet to increase its presence in the Caribbean market, but plans to capitalize on the islands is not afar

Oyster Publications Inc, PO box 3369, Road Town Tortola, British Virgin Islands, VG1110