DESERTGEM

A 70S WILD CHILD TURNED OUTBACK COSMCTICS ENTREPRENEUR,STEPHEN BIRKBECK HAS FOUND COMMERCIAL INSPIRATION IN THE

UNLIKELIEST IDEAS, FROM EMU FAT TO PEARL PERFUME

STORY MILANDA ROUT

N a shed on a jooha farm near Albany,Western Australia, Stephen Birkbeckand his wife Karen were experimentingwith pearls to see if there was a cosmeticapplication. The self-described "bushengineer" had designed an extractionmachine on the cheap for $25,000 ("wecould never employ anyone to work on it

because if the bolts flew off they would kill you") andhe lifted the lid to see what was inside. No stranger tothe world of cosmetics, the couple had successfullyworked with emu oil and sandalwood and made millionsof dollars in the process. But they were surprised at thisresult - it was not the texture, look or feel they noticed,but the smell.

"If you close your eyes and put yourself in a tropicalenvironment and you just imagine the waft of white floralof the frangipanis and the white sand, a nice flick off theocean, a little bit of salt in the air, that is the smell," saysBirkbeck of the pearl. "We went after the [the cosmeticapplication of the pearl] and by accident, as we werepulling off the lid, we got the extract, but it smelt. Sothrough later trials we were able to extract the perfume ofthe pearl ... ] knew I was on to something massive."

And so Birkbeck found his next endeavour, his nextchallenge: to manufacture and sell the world's first pearlperfume. He had ventured into the pearl industry acouple of years earlier, when it was struggling in themidst of the global financial crisis. As someone whoadmits to "liking crisis" and thriving in stress, he boughtinto Atlas Pearls and Perfumes in 2009 at the almost rock-bottom price of 11c a share. He has managed to turn thecompany around (winning export awards along the way),increase its revenue dramatically and convince singerTina Arena to become a creative director, perfumedesigner and ambassador. Now he wants to utilise thepearl and pearl shell in ways not done before: "Can yousell perfume in a jewellery shop?"

There have been many words used to describeBirkbeck over his 50-odd years of life. They range from"colourful businessman" and "outback hero" to "legendin his own lunchbox" and other names that probablyshould not be published (WISH does not like words fullof asterisks). Former deputy prime minister Tim Fischerpraises Birkbeck as the "Sultan of Sandalwood" (thanksto his success selling the oil to French perfumecompanies); former US president Bill Clinton hascommended his work building an ethical cosmeticsindustry; and Arena says he is "just a hippie from the70s". Birkbeck describes himself more simply, just as anAustralian farmer (though one not shy of self-promotion).

"I have very eccentric and odd ideas that seem to manifestthemselves into the commercial world quite well," hesays. "But in terms of knowing where my limitations andweakness are, I always started with that, so I am quitehappy to acknowledge that Tina is right and that isbecause of my 70s upbringing."

When WISH met Birkbeck, it was in a setting thathardly did justice to the extraordinary tale he told of a lifethat began in the English midlands and ended up in theremote outback. Sitting in a stiff, formal, old-fashioneddining room in Sydney, he spent 2 1/2 hours recalling thehighs and lows that led to him to Atlas Pearls. With threesackings, a terminal cancer scare, love lost and foundagain, car accidents, multiple million-dollar businesses,skating the verge of bankruptcy numerous times, runninga wild pub in the middle of the outback, lifelongfriendships with indigenous Australians, the Frencharistocracy, emus, crocodiles - there is a fair amount ofmaterial to get through. At times Birkbeck was in tears,recalling the impact his wife has had on his life ("Youwant the real story? It starts when 1 met Karen"). Othertimes he would wander off topic, dropping names anddetailed descriptions of countless individuals he metyears ago. It is difficult to keep Birkbeck on track but onesuspects this is also part of his charm, part of his success.

Birkbeck is the son of an English soccer player whomigrated to Western Australia and worked as a teacher invarious country towns. His dad had grand plans forBirkbeck to follow in his footsteps and sent his son homeat age 14 to do an apprenticeship with his former side,Lincoln City. But Birkbeck wasn't a fan of his birthcountry (or the sport) and came home soon after, back tohigh school with a new found sense of independence."Prom that point on, I was Australian and fiercely proudof it but before that I had this English heritage because ofMum and Dad," he says. "1 think 1 had the highest levelof truancy in the history of Balcatta High School [wherehe attended I but I was not expelled because I was gettingexcellent marks. Basically I was a 1970s wild child."

He met his future wife at a mate's school carnival.She was a "prim and proper girl", he a long-haired boywho went too fast on his motorbike. "I was a bit wild andafter a few years, Karen needed some space," he recalls."When she left me, I had a death wish, at that point, Iwent into self-destruction mode." The couple were apartfor five years before they reunited. In the interveningyears, Birkbeck enrolled and dropped out of a number ofuniversity degrees ("I specialised in first-year coursesbecause I liked the parties") before he smashed hisfriend's father's prized 1967 Holden into a ditch while hewas drunk. He and his mate were lucky to walk away

February 2015

. ' . : . . • . . • ;

Copyright Agency licensed copy(www.copyright.com.au)

The Australian, Australia06 Feb 2015

Wish, page 38 - 3,373.00 cm²National - circulation 116,854 (MTWTF)

ID 369591333 PAGE 1 of 3

February 2015

Copyright Agency licensed copy(www.copyright.com.au)

The Australian, Australia06 Feb 2015

Wish, page 38 - 3,373.00 cm²National - circulation 116,854 (MTWTF)

ID 369591333 PAGE 2 of 3

alive. He was arrested and spent the night in jail. "Thatnight I decided I was leaving university, I needed to get ajob, I needed to stop drinking and clean up my act," hesays. "I literally came out of the lockup, read the paper ...and the first job I saw in The Sunday Times was for abarman atWiluna Hotel [950km north-east of Perth]. I'dnever heard of it before. It was in the Gibson Desert."

Birkbeck was given the job. But it was 1980 and theWA outback "still effectively had apartheid". The pubhad separate bars for whites and Aborigines. The jobcame with stern warnings from the owners of the pub(which still divides the community over the effects ofalcohol on the indigenous population). " 'If you ever gonear the Aboriginal women, we will get you out on thefirst plane because we have had two of our men speared',"Birkbeck was told. "This pub was just the wildest pub inWestern Australia — like Fitzroy Crossing, just wilder."

On his first night, the Wiluna Hotel lived up to itsreputation. "It was a Tuesday night and it was quiet soKen [one of the co-owners] went to bed. He showed mehow to pour a beer, I had never poured a beer before that,and two [indigenous] people walked in. They were largeand unbeknownst to me, they were drunk ... they wererolling drunk," says Birkbeck. "I cut [one of them] off andI wouldn't serve him. He hit me pretty hard ... but Ididn't dob him in. He sort of respected me ... and hebecame my mentor." The man's name was BobbyCameron (known as "Cowboy" in Wiluna) and he wasalso an expert emu egg shell carver. Birkbeck wasfascinated by this unique Australian art form and he asked

"I WAS AN IDEALISTAND I STILL FELT A

STRONG DRIVE THAT ICOULD DO SOMETHING

(FOR INDIGENOUSCOMMUNITIES)"

Cameron to show him how to do it. They then decided togo into business together. "[In those days] an emu eggshell basically sold for $500 ... at five-star hotels," he says."I found a dentist drill and thought we couldcommercialise this and make a fortune. We scaled ourlittle business up and I bought my first house with that."

Birkbeck tried to go back to university to studyAboriginal anthropology but could not forget the violencehe had seen in Wiluna. "I was an idealist and I still felt astrong drive that I could actually do something," he toldFischer for his book Outback Heroes (co-written withPeter Rees). "I certainly wasn't going to do it sitting in aclassroom in the city." In the next few years, Birkbeckreunited with Karen, got married, had three daughters

and ran emu and crocodile farms in remote indigenouscommunities.

He was sacked three times, mostly from disagreementswith federal bureaucrats (perhaps a polite way of puttingit but again WISH does not like to include words withasterisks). "You have mercenaries, missionaries, andmisfits that go to indigenous communities. The three Ms.I was a misfit," Birkbeck admits. He may have clashedwith the powers that be but he also made lifelong friends,says Aboriginal artist Richard Walley. He describes the54-year-old as a self-made man who was "not afraid toshow off a product nationally and internationally" butalso wanted to help indigenous communities. "Herelated to a lot of them," Walley says of Birkbeck'sindigenous mates in Wiluna. "He makes friends easily.He is larger than life and it becomes infectious in thecommunities and so he did really well."

The three sackings did, however, take their toll.Birkbeck had nenous breakdown at 27 (he describes thisas handy because it "stripped back" his ego) and heretreated from the world, buying a cattle farm in Albany.But he did not truly hit rock bottom until his wife sufferedthe humiliation of a cheque bouncing during the weeklygrocery shop. The local branch manager berated anembarrassed and angry Birkbeck: "Steve, you have to geta life, you have to realise you are going backwards". Sohe went back to what he knew best: emus. He and Karenstarted experimenting with emu oil (after seeingindigenous friends use it) as body care products and wassoon making half a million dollars a year and travelling toFrance to do more research on its cosmetic application."I got my mojo back," he says of this time of his life. "Idecided I was going to sell emu fat."

The next step was upscaling operations from thekitchen table (where Karen was doing it with a saucepanand a jug) so Birkbeck bought an essential oils factory thatwas in financial strife. In the fire sale, he also got stockpilesof sandalwood. "That stood out to me," he says. "What Isaw was an industry that had been going since the mid-19th century, it was the first export out of WesternAustralia." And so Mount Romance skincare was born in1990 and Birkbeck began selling sandalwood oil to luxuryFrench perfume houses (it was an ingredient in YvesSaint Laurent's Opium). It also spurred a connectionwith France, as Birkbeck formed friendships and laterbusiness partnerships with the Rocher family (of the YvesRocher cosmetics company) and became a key player inthe push for ethics and sustainability in cosmetics.

By 2005, he sold his company for $19.5 million (helater bought it back off its new owners when it was on theverge of collapse, and sold it again for $28m in 2008). Butwhen Birkbeck finally got his first "big cheque", he alsofound out he was sick: he was diagnosed with leukaemiaand given 90 days to live. He spent four months inintensive care, but doesn't look back at that timenegatively, instead seeing "opportunity out of adversity".And Birkbeck is still here, albeit with less hair (his words,not ours). "He gets up off the floor and he tries and triesagain until he succeeds," says Fischer. "Steve is adetermined, dynamic colourful Australian who has hadhis bumps along the way but he has bounced back."

Birkbeck says he will give another two years to "thecommercial world" before withdrawing to his farm (hehas already stepped down as CEO of Atlas Pearls butremains executive chairman). When pressed on what thisactually means, he says he plans to write a book, spendtime with his daughters and do some "nutty creativethings". Sounds like ordinary retirement fare. But in thelast seconds of the conversation, Birkbeck drops that hemet French President Francois Hollande and PrimeMinister Tony Abbott recently at trade functions and onesuspects Birkbeck will not be slowing down any timesoon: "I had a fascinating couple of days and now I amreally keen to look at some much higher level [trade]issues that will help my company and Australia." E3

February 2015

42

Copyright Agency licensed copy(www.copyright.com.au)

The Australian, Australia06 Feb 2015

Wish, page 38 - 3,373.00 cm²National - circulation 116,854 (MTWTF)

ID 369591333 PAGE 3 of 3