Kyle Skene of Strange Nature: How a ‘Happy Accident’ Turned Sauvignon Blanc Into Award-Winning Gin, Disrupted Global Spirits, and Scaled to $54/L Value with Just 2 Staff and a Bottle That Sells Itself. (Episode 4 - Kyle Skene)

podcast Jun 16, 2025

In this episode of The Distillers Institute Podcast, host Marcel Thompson interviews Kyle Skene, founder of Strange Nature Distilling, who shares his remarkable journey from a decade in the spirits industry to pioneering a distinctive gin crafted from Sauvignon Blanc ethanol. By distilling this unique base with juniper, the result is a premium gin that commands a retail value of $54 per liter—substantially higher than the $8 per liter typically achieved by New Zealand Sauvignon Blanc. With an annual output of 70,000 bottles and revenues between $2 to $2.5 million, Strange Nature has earned global recognition. The brand's success is driven by its premium market positioning, award-winning packaging, and strategic partnerships, all contributing to the elevation of New Zealand's wine and spirits industries.

A glimpse into the questions Marcel posed to Kyle Skene:

Tell me a little bit about the idea behind Strange Nature Gin and indeed, the Strange Nature distilling business itself. And how did that actually come about?

Kyle Skene shared that the idea behind Strange Nature Gin began unexpectedly during his time in the wine industry at Giesen Brothers (with Theo, Alex and Marcel Giesen), after spending a decade in the spirits industry. While working on non-alcoholic Sauvignon Blanc, he became curious about the ethanol being removed during the de-alcoholisation process. In March 2020, during the early days of COVID, he received samples of this ethanol and, upon tasting it, had what he described as an “oh shit” moment—it was incredibly aromatic and flavorful. Recognizing its uniqueness, he contacted Alex Giesen and pointed out that while they had spent decades making wine, they had now inadvertently created a beautiful spirit. This moment marked the beginning of Strange Nature, a gin distilled from Sauvignon Blanc ethanol, uniquely paired with juniper, leading to a product that stood out globally for its flavor and origin.
What do you love most about growing your business? What's the thing that you really like the most about this journey?

Kyle Skene shared that what he loves most about growing his business is the evolution of the journey—starting with creating the brand, story, and packaging, and then embracing the challenge of taking it global. He finds great satisfaction in building a coalition of passionate people who believe in the story. For him, it's especially rewarding to contribute to and connect New Zealand’s wine and spirits industries on a global stage.
Could you provide some insight into the scale of your operations? For example, production capacity in liters or bottles, team size, or sales volume—whatever details you're comfortable sharing?

Kyle Skene explained that Strange Nature operates with a lean model, partnering with experts for distillation and packaging while maintaining a core team of just two people. The business produces around 70,000 bottles annually, generating $2 to $2.5 million in revenue. Their operations remain small and efficient, focusing on premium positioning and strategic market segments rather than large-scale volume.
Any thoughts you can share around the next steps around scale, particularly with the focus on export markets?

Kyle Skene emphasizes strategic growth for scaling with a focus on export markets. Strange Nature leverages its unique Sauvignon Blanc ethanol base for premium positioning, ensuring scalability through steady byproduct supply and automation plans. By adopting a “niche within a niche” strategy, they target less competitive markets, such as secondary U.S. states and duty-free outlets in Southeast Asia. Strategic partnerships with experts in distribution and retail, like RNDC, Total Wine & More and Federal Merchants & Co, are pivotal. Bespoke packaging and compelling storytelling enhance global appeal, while a focus on premiumization over volume drives sustainable growth. Patience, focus, and aligning with market dynamics underpin their success.
What do you think has been the greatest challenge you've had around putting the concept and building not only just the production side of things, but just the Strange Nature business itself?

Kyle Skene identifies staying focused amidst numerous opportunities as the greatest challenge in building the Strange Nature business. With many ideas and external suggestions, the key difficulty lies in resisting distractions and adhering to a clear strategy. Additionally, funding growth while ensuring reinvestment aligns with their premium positioning requires careful prioritization of resources. Surrounding the business with the right shareholders and experts has been crucial for maintaining alignment with long-term goals, enabling them to navigate challenges while staying true to their vision of sustainable and strategic growth.
What would you say has been the biggest challenge in developing Strange Nature—not just on the production side, but in building the business as a whole?

Kyle Skene states that the biggest challenge in developing Strange Nature has been maintaining focus while navigating countless opportunities and ideas. Balancing strategic growth with resource constraints requires disciplined decision-making, especially in prioritizing market segments and resisting distractions that deviate from their core goals. Additionally, reinvesting effectively to sustain premium positioning and scaling production without compromising quality has been critical. Surrounding the business with the right partners and shareholders has helped ensure alignment with their vision, enabling Strange Nature to grow sustainably while staying true to its unique value proposition.
If there was one piece of advice you would give to someone who's just starting out, what would that be?

Kyle Skene advises those starting out to be exceptionally clear about what their brand stands for and the market segment they aim to succeed in. Focus on defining your product’s unique value and aligning it with the right distribution channels, whether retail, on-premise, or direct-to-consumer. He emphasizes the importance of patience, consistency, and spending time in the market to learn from real-world feedback. Ultimately, staying true to your strategy while resisting distractions will position you for sustainable success.

Quotable quotes from our special The Distillers Institute podcast guest:

Staying focused on your strategy is the hardest but most rewarding challenge – Kyle Skene

Great brands are built by knowing what you stand for and sticking to it – Kyle Skene

The right partners bring more than money; they bring value and vision – Kyle Skene

Success comes from patience, clarity, and learning from every market interaction – Kyle Skene

The best way to grow is to think small, win big, and stay true to your story – Kyle Skene