Deadly Partnership: First Nations’ business built on respect, responsibilities and reciprocity

Nobody thought non-alcoholic craft beer would take off: they were wrong

In 2017, Gamilaraay entrepreneur Dr Clinton Schultz set up Sobah Beverages – Australia’s first to market non-alcoholic craft beer company.

“No one wanted anything to do with non-alc beer when we started. We literally got laughed at and told that it wouldn’t work,” Clinton says.

“We spent two years investing our own time, energy and resources into re-educating Australians.”

Six years later, and all that effort paid off with Clinton, partner Lozen and the Sobah team opening the 650 square metre Sobah Brewery and Café Precinct on Kombumerri Country at Burleigh Heads in September 2023.

Clinton was on the money. Australians, especially younger Australians, are turning away from alcohol. According to a 2023 article in The Sydney Morning Herald, the market for non-alcoholic beer in Australia is expected to grow at 9% a year, pulling in an estimated $289 million in revenue in 2023. And Endeavour Group, which owns Dan Murphy’s and BWS, reports that zero alcohol drinks are one of their fastest growing categories with sales across their stores growing more than 150% from 2020–2022.

What sets Sobah craft non-alcoholic beers apart from what is these days a big market is that they are flavoured with native fruits and spices, such as Davidson plum and pepperberry. Their range includes Davidson Plum GF Ale, Lemon Aspen Pilsner, Finger Lime Cerveza, Pepperberry IPA, and Tropical Lager.

First Nations’ values

“When I chose to disengage from Western ways of knowing and being, I made that decision for myself, kids and family, that I’m going to live black fella way and abide by our laws,” Clinton says.

“That’s been a huge change in my life.”

He says sometimes that’s going to be in conflict and contrast with Western law, but “so be it”.

“Our laws are so grounding and strong that when used in the right way they protect you no matter what space, as long as you are being respectful, fulfilling responsibilities and acting with reciprocity.

“Our ways don’t just benefit us – they benefit everybody.”

Breaking barriers

While Clinton says he’s seen changes, institutional and societal racism is ever-present.

“People constantly have this assumption that First Nations’ businesses should always be market stalls. They don’t really have faith in Aboriginal businesses – that our people know what they’re doing and are able to be successful.

“Despite the fact that I have multiple degrees, a PhD, and ran a successful consultancy company for over a decade, I found it difficult to get the support I needed to set up Sobah.

“Because this was a different business I was still being treated as if I was a newbie to the whole area of business and finance.”

Clinton’s experience in getting the financial support he needed for his business is backed up by a 2023 ABC report on the problems First Nations’ entrepreneurs encountered when trying to get that all-important early capital to get off the ground.

Deadly deals

Clinton had been applying for a number of grants without success.

Then the Deadly Innovation team from Advance Queensland reached out and talked to Clinton about the problems he was facing.

In 2019, Sobah received $100,000 in Advance Queensland Deadly Deals funding to purchase a specialised pasteuriser.

“We needed to pasteurise our products so that we could get it anywhere, by dry shipping and extending our shelf life.”

“For us that financial investment and that belief in us meant a huge deal,” Clinton says.

In 2023 Sobah received a $500,000 Deadly Partnership grant, jointly funded by Advance Queensland and the Department of Environment and Science though its Circular Economy Investment Program.

This funding supported the purchase of specified plant equipment to allow green technologies to be installed at the new brewery precinct, supporting water recycling, solar power generation, and waste reduction.

And in 2020, independent Indigenous-led fund manager and business advisory organisation First Australians Capital (FAC) came to the party, partnering with Westpac to facilitate funding for Sobah to double its production capacity by building their own brewing facility at Burleigh Heads. FAC worked with Clinton and Lozen to ensure Sobah was loan-ready as well as continued critical support after Westpac provided the loan.

Deadly Partnership laying the capital pathway

It’s this commitment to supporting First Nations’ entrepreneurs and innovators that has led to the Deadly Innovation team partnering with FAC to set up the First Australians Capital Business Acceleration Program in Queensland.

Deadly Innovation worked closely with the Queensland Investment Corporation to set up the partnership with FAC and the establishment of the groundbreaking new initiative, under the Advance Queensland Deadly Partnerships – designed to enable First Nations’ people to participate fully and make the most of the opportunities in the rapidly expanding future economy. To find out more about Deadly Partnerships, see Deadly Innovation.

FAC’s record speaks for itself. To date, it has supported more than 800 Aboriginal and Torres Strait Islander entrepreneurs though 94 investments, $80 million in leveraged capital and the creation of over 370 jobs.

Deadly Innovation has put $1.5 million into the pot for the First Australians Capital Business Acceleration Program, which FAC will deliver over the next two years.

The way the First Australians Capital Business Acceleration Program works is like this – it will offer a staged approach to assist Aboriginal and Torres Strait Islander businesses and innovators to grow while also providing a framework and guidance for success.

That includes:

• Enterprise Loans and Grants – a $1 million fund available through early-stage /seed investment for loans of up to $100,000 to Queensland Aboriginal and Torres Strait Islander innovative businesses. The loans will enable these entrepreneurs to pursue innovative ideas and projects, providing them with the necessary resources to take calculated risks and drive growth.
• Business Strategic Advisory Services – a targeted fund to cover costs of essential business strategic advisory services. A dedicated project leader will support First Nations’ founders and companies in areas of fundamental business skills, legal, finance, marketing, mentoring, and grant and tender writing.
• Leveraged Pathways – customised assistance for Aboriginal and Torres Strait Islander businesses in navigating grants and procurement opportunities to elevate their competitiveness in accessing available funding.

FAC Co-Managing Partner Brian Wyborn says the First Australians Capital Business Acceleration Program will enable First Nations’ people to leverage their unique cultural knowledge and perspectives, fostering creative solutions and sustainable practices that benefit all Queenslanders.

“The empowerment provided through this program aims to promote self-determination, allowing Indigenous peoples to lead initiatives that reflect their values and aspirations, ultimately strengthening community resilience and cohesion.”

More information about the First Australians Capital Business Acceleration Program.

More than a beverage

At every step, Clinton, Lozen and the Sobah team incorporate First Nations’ knowledge, skills and way of working, and support mob, from community programs to training, education and employment.

The new brewery and café venue is providing opportunities, with the native food café providing work in hospitality and retail, and the brewery requiring engineers, distribution, logistics and administration.

“This has always been part of the vision to have training and education facilities and employment for mob, and for non-Indigenous people to be able to see Aboriginal business done differently.”

Clinton says Aboriginal businesses are quite successful given the limited opportunities, investment and belief that’s been afforded. He wants other mob to follow their business goals.

“There is going to be that inherent disbelief in your ability. You have to fight against that constantly and it drains your energy.

“So make sure you have that strong support. You need mob and family because it is tough.

“You need to remain grounded and connected and that belief will carry you through.

“We need opportunities like Deadly Deals that support our needs and goals.

“We’re very grateful for the work that was put in to develop that program and the opportunities that it has helped create for us, and therefore for us to create for others.”

Advance Queensland: Supporting Aboriginal and Torres Strait Islander Innovation and Pathways

Advance Queensland is committed to creating pathways for Aboriginal and Torres Strait Islander businesses and innovators to turn ideas into reality. Discover more about Advance Queensland’s Deadly Innovation strategy to find out how we’re helping to deliver jobs and economic opportunities for Aboriginal and Torres Strait Islander people.