For auditor-turned-F&B entrepreneur Chua Khoon Hui, strength and inspiration comes from within. In particular, American author and learning expert Jim Kwik’s famous quote — “Great things always begin from the inside” — resonates deeply with him.
“Greater things start from within,” notes Chua, the CEO of Singapore Exchange (SGX)-listed whisky and cocktail bar operator TSH Corporation. “As we are in the people business, I believe that in everything we do, it must begin from inside the organisation and within ourselves.”
Chua, a Bachelor of Accountancy graduate from Nanyang Technological University, began his career as an auditor in 1999, before moving into the F&B industry in 2002. Together with his wife, Ng Pei Wah, he founded Sloshed! — which operates pubs and bars, as well as imports, exports and distributes spirits — in 2005.
“After my wife and I ventured into F&B, like all passionate and gung-ho start-ups, we experienced many failures and learned from them. Perseverance despite difficulties, and learning from our mistakes, were key requirements for us to survive in this industry,” Chua recalls.
TSH was a consumer electronics products and homeland security services firm that became a cash company after divesting its operations and assets. In February 2019, it acquired Sloshed! via a reverse takeover. Chua was appointed the group’s CEO, and his wife is currently the director of operations.
“In this sector, our business revolves around people, so we believe in people-oriented leadership,” Chua says.
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“As my wife and I have different characters, we leveraged each other’s strengths to achieve our goals. With all our suppliers, customers and colleagues, we apply the same principles of integrity and sincerity. We also strive to empower and develop our colleagues and staff, so as to build a cohesive team that can overcome any challenge.”
Today, TSH operates five outlets spanning four brands — Quaich Bar and Signature Reserve, which are whisky-themed; as well as The Other Room and The Other Roof, which focus on cocktails. TSH imports whiskies from boutique distilleries in Scotland, Ireland, South Africa and India, as well as from independent bottlers and wholesalers in the UK.
It also brings in other spirits, wines and liquors for its outlets. The group distributes its products on a wholesale basis to other bars, country clubs, hotels, restaurants, corporates and individuals who purchase in bulk. In 2020, it started online retail sales of the whisky brands it carries.
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Distinctive offerings
However, Covid-19 has dealt a blow to the group’s vision to expand into an international beverage operator.
“The pandemic and national lockdowns have put a brake on our initial overseas expansion plans,” Chua acknowledges. “Our development of a brick-and-mortar service brand has pivoted to a focus on product differentiation through collaborations, as well as investments in whisky casks. This has set the foundation for future expansion plans in our main F&B business.”
The restrictions imposed by the Singapore government to curb transmission of Covid-19 during 2020 and 2021 have also crimped revenues, sending TSH into a net loss for the financial years ended Dec 31, 2020 and 2021. The group also has to contend with low barriers of entry for the F&B industry, which remain a key risk for its service outlets.
Nonetheless, Chua is sanguine about TSH’s longer-term prospects. As a first-mover in the whisky industry in Singapore, the group has a strong advantage when negotiating with distillers and bottlers, having supported many of them during a time when whisky was not yet a popular drink.
“The relationships built up over the years have given us access to rare and exclusive brands unavailable to others in the market. By buying direct from the source, we also secure our products at the lowest possible cost,” Chua says.
“Currently, we’re developing differentiated products by buying rare and fine whiskies through partnerships with renowned whisky-makers.”
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In 2021, TSH collaborated with renowned whisky-maker, Frank McHardy, and purchased approximately 50 casks of aged whisky and rum. These investments paved the way for the next phase of expansion for the group.
“We’re constantly exploring opportunities to grow, whether organically, or through joint ventures and strategic alliances,” he adds. “As we pivot our strategies to adapt to the new normal, while riding on the robust development of the global whisky industry, we’re confident of expanding our business.”
Accelerating consumption
According to a research report by Facts & Factors, the global whisky market was estimated at US$61.7 billion in 2019, and is expected to surge to US$95.9 billion by 2026, reflecting a compound annual growth rate (CAGR) of 6.5% over the period.
With rising disposable incomes, and perceived health benefits vis-a-vis other alcoholic beverages — whisky has a high level of antioxidants, no fat and minimum sodium content — analysts expect consumption of this beverage to accelerate in the years ahead.
Meanwhile, apart from the day-to-day operations, Chua is also focused on the group’s environmental, social and governance (ESG) targets.
“One of our priorities is human capital — staff attraction and retention, merit-based and non-discriminatory practices, health and safety,” Chua notes.
“Hiring and retention of staff are key challenges for us. We strive to build a conducive and harmonious working environment so that our colleagues are motivated to remain with us, allowing us to train and groom them into successful F&B professionals,” he says.
Another key focus for the group is good governance. “As I’ve mentioned before, our business is a people business, and dealing with all stakeholders with integrity and sincerity has always been an imperative,” he adds. And given the myriad challenges faced by the F&B industry, there is much to keep Chua up late at night.
“The shifting regulations and changing operating environment, especially for bars in Singapore, are a major concern,” he admits.
“These changes are beyond our control, and we need to be constantly on our toes, staying nimble and agile. As we are a people business dependent on talent, simply cutting manpower costs is not an option,” he adds.
At the end of the day, many obstacles notwithstanding, this 47-year-old father of a teenage son remains inspired by the rigours and discipline of the whisky industry.
“My wife and I ventured into this industry more than 15 years ago because of the passion of the people behind the craft — and that comes through in each and every bottle,” Chua notes.
“It’s not something you can make today and enjoy tomorrow. The youngest whisky is three years old, and most are much, much older. It takes a person with passion, perseverance and vision to start a whisky distillery. Therein lies the essence of the human spirit,” he says.
TSH Corporation
TSH operates five outlets spanning four brands — Quaich Bar and Signature Reserve, which are whisky-themed; as well as The Other Room and The Other Roof, which focus on cocktails. The group imports whiskies from boutique distilleries in Scotland, Ireland, South Africa and India, as well as independent bottlers and wholesalers in the UK. It also brings in other spirits, wines and liquors for its outlets. The group distributes its products on a wholesale basis to other bars, country clubs, hotels, restaurants, corporates and individuals who purchase in bulk. In 2020, it started online retail sales of the whisky brands it carries. The company website is: tshcorp.com.sg
About kopi-C: The Company Brew
kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.
