Riviera thinking big in the US

A new facility expansion that could accommodate builds up to 100 feet isn’t a target the company is aiming at.

“We’re satisfied in being a high-quality proposition from 40 to 80 feet,” explained Chris McCafferty, Riviera's US-based international development dealer and sales director, during a chat with boatsales.com.au at the Miami International Boat Show (MIBS).

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“I think, honestly, where we are right now is about as big as we’re going to go,” McCafferty said, referring to the 72 Sports Motor Yacht currently in production and the 78 Motor Yacht that will make its debut at the Sanctuary Cove International Boat Show in May following “a very exclusive” pre-launch event in April. 

“Our sweet spot, if you like, is 50 to 60 feet. We’re really good at building that size product. Once you get into the 80-foot plus territory, that’s a different world. I don’t know that we want to play there yet,” he said.

Nor are there plans for Riviera to go smaller; a flirting with engine maker Mercury Marine for its V12 Verado will not evolve to marriage.

“We’re not building outboard boats. It’s not our market,” McCafferty said adamantly while shaking his head. 

“[Some of us] pushed to at least open the door to possibly offer that product, but in Rodney and Wes’s (owner Rodney Longhurst and chief executive Wes Moxey) minds, it takes away; it’s a distraction from what we do.

“This is who we are: we build an inboard-powered vessel. Outboard, leave that to everyone else. Let them be good at it.

"Once you start messing around with different places to put the engines, things get a little bit messy. Sort of a bit like Land Rover. They stick to four-by-four. That’s what they know, that’s what they’re good at, that’s their niche. They don’t build a sportscar.

“We know what we’re good at. We’ve spent a lot of time honing our craft on that segment. So, to take a step into something a little bit different; we just don’t have the headspace at the moment to be able to do that.

"Our new product development program is full with the next Rivieras as you see them today, let alone throwing into the mix outboard power or that sort of stuff,” he said.

As for the aforementioned development program, all McCafferty would reveal is that “[we have] lots in development. Put it this way, you will have an awful lot to report on from Riviera for the next several years.”

An order book filled into 2025 begs the question of why even go through the time, expense and hassle of a major international boat show. McCafferty responds, offering support to the industry and the newly reformatted MIBS, which unified with the Miami Yacht Show and Super Yacht Miami as one event under the Discover Boating banner.

“The other side of it as well is whilst we’re telling people we can’t get you a boat until 2025, I don’t want my competitor telling people ‘Riviera isn’t doing so well,’ so, you know, we’re supporting the industry and we have to constantly be looking toward the future. Not today. We’re looking out 2, 3, 4, 5 ten years and making sure we’re sowing all the seeds today that are going to bear fruit in 3 to 5 years' time.”

Production expansion at Queensland should increase capacity by 14.0 per cent and that growth will depend on finding good craftspeople to build the Riviera line, McCafferty said, adding there was a host of challenges in trying to ramp up operations.

“Could we increase production – if we could guarantee getting the parts – to help meet that demand? Probably yes, but it would be at the expense of quality, and Rodney will not sacrifice quality. We will not increase capacity unless we can be guaranteed that quality not only stays the same but actually gets better.”

The increased capacity would help McCafferty’s international sales, of which 40 to 45 per cent sail for the US.

“But as an opportunity for the company, the US is still huge. If I had my way [the US market] would be 75 per cent of the production and we have the ability to do that. The US is still the largest market in the world and we see a massive opportunity here in the US.”

But loyalty from the local Australia/New Zealand market – historically fully 50 per cent of sales – is what has kept the 41-year-old builder afloat.

“Aussies are very patriotic, much like the US, so absolutely, it’s a homegrown success story within Australia, but really, it’s the products, which speak for themselves,” McCafferty said.

In fact, seven of the nine pre-ordered 78 Motor Yacht were sold in the Australia/New Zealand market – the latter of which McCafferty describes as “on fire. Just killing it.”

“This little company, we pride ourselves on being lean, mean and able to adapt very quickly, we fly below the radar; we’re not the one’s out there beating our chests saying ‘come look at us,’ we’re very humble and we just stick to what we do.

"Riviera has a habit of finding people and getting under their skin, and that’s both people who work at riviera on a daily basis or if you’ve spent your hard-earned cash on actually buying one of these things.

“We’re a little Aussie battler that just finds a place in your heart.”