United States

Kadey-Krogen Yachts 

Founder of <a data-gid="gid://syiq/Company/4433" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Outer Reef Yachts (Company)">Outer Reef Yachts</a>, Jeff Druek, reflects on a maritime journey that began with commercial fishing and led to the foundation of one of the American industry’s favourite long-range cruiser brands. In this exclusive conversation, he discusses the brand’s foundations, his strategic expansion into Europe, and how a shifting clientele is reshaping <a data-gid="gid://syiq/Company/4433" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Outer Reef Yachts (Company)">Outer Reef’s</a> future.<img src="https://photo-assets.superyachttimes.com/photo/373903/image/large-1d475310c5dcb3872066e02af123b8d5.jpg" data-gid="gid://syiq/Photo/373903">Jeff, your path into yacht building is quite unconventional. Can you tell us how your early career led to the founding of&nbsp;<a data-gid="gid://syiq/Company/4433" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Outer Reef Yachts (Company)">Outer Reef Yachts</a>?It all started somewhat unintentionally. Before I ever considered yacht building, I was a lifelong boater – a true boat rat. My commercial fishing background gave me a deep appreciation for trawler-style vessels. After many years of building custom homes in the Hamptons, I found myself shopping for a long-range cruiser, something beyond the 30 to 50-foot sport yachts I owned. I was seriously considering a <a data-gid="gid://syiq/Company/6321" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Fleming Yachts (Company)">Fleming</a>, which at the time was one of the industry leaders. But as a custom home builder, I was baffled by the lack of flexibility in yacht design – it reminded me of Henry Ford’s famous line: “You can have any colour you want, as long as it’s black.”So, I made the bold – and somewhat naïve – decision to build my own boat. It was never intended to become a business. But the first 60-foot yacht I built attracted interest right away and sold at a boat show. I made a modest profit and decided to build a second, a 75-footer, which also sold quickly. What began as a passion project evolved into <a data-gid="gid://syiq/Company/4433" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Outer Reef Yachts (Company)">Outer Reef Yachts</a>, which has now been going strong for over 25 years.Outer Reef builds in Taiwan – why did you choose to base production there?Taiwan has long been the benchmark for building long-range cruisers. Most of the major players – <a data-gid="gid://syiq/Company/6321" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Fleming Yachts (Company)">Fleming</a>, <a data-gid="gid://syiq/Company/2047" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Nordhavn Yachts (Company)">Nordhavn</a>, <a data-gid="gid://syiq/Company/6381" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Kadey-Krogen Yachts (Company)">Krogen</a> – have or had a presence there. The build quality and value for money are exceptional, and we’ve worked with the same shipyard for well over two decades. Though costs have risen, the consistency and craftsmanship remain top-tier. I don’t own the facility – like most in the industry, we subcontract, which has been a recognisable model since the 1970s.<img src="https://photo-assets.superyachttimes.com/photo/373901/image/large-dbafb8c923841aa0837b07cd1a1d1dcc.jpg" data-gid="gid://syiq/Photo/373901">Was it difficult to ensure quality control so far from home in those early days?It was a significant challenge. I was flying over to Taiwan every three weeks in the beginning. Even now, while I don’t travel quite as frequently, each yacht undergoes a rigorous inspection and sea trial regime by <a data-gid="gid://syiq/Company/4433" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Outer Reef Yachts (Company)">Outer Reef</a> staff. Quality assurance has never been an afterthought – it’s embedded in everything we do.Building a brand in the yachting world isn’t easy. How did&nbsp;<a data-gid="gid://syiq/Company/4433" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Outer Reef Yachts (Company)">Outer Reef</a>&nbsp;establish itself?It took years, but I’ve always approached this as a serious business. Back in the 80s and 90s, the industry in the US had more of a party culture, but I brought a business-first mentality. I funded everything myself – no banks, no investors. I’ve never worked for anyone else, so failure wasn’t an option.What really cemented our brand was our commitment to after-sales service. Boats – no matter how well-built – will have issues. But when you solve them quickly and support your clients unconditionally, that’s what builds loyalty. Many of my team members have been with me for over 20 years. It’s a close-knit group and that continuity shows.Tell us about the merger of the Dutch builder&nbsp;<a data-gid="gid://syiq/Company/3031" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Lynx Yachts (Company)">Lynx Yachts</a>&nbsp;– how did that relationship begin?Initially, we were simply looking to expand our product offering to reduce lead times, which had reached almost three years. <a data-gid="gid://syiq/Company/3031" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Lynx Yachts (Company)">Lynx</a> was an interesting prospect because they were building a solid product but lacked in-house marketing and they relied on brokers who were more focused on commissions than brand building.Our expertise is in branding and marketing, so the synergy was obvious. I sometimes say we are a marketing company that happens to build boats. What began as a potential sales partnership evolved into something much larger. Eventually, we merged with <a data-gid="gid://syiq/Company/3031" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Lynx Yachts (Company)">Lynx</a> to secure long-term stability and ensure we weren’t building a brand for someone else to capitalise on later.What has the European response been since the European move?The response has been overwhelmingly positive. Our American clients applauded the move, and we’ve seen a significant uptick in European interest – nearly 60% of current leads are now from Europe. US Buyers have historically been more cautious about metal yachts, however the market’s understanding of metal construction is quickly evolving, particularly with innovations in modern yachting coating systems. <img src="https://photo-assets.superyachttimes.com/photo/373900/image/large-a1d65c12c90555c0b1a835a0b99bd48f.jpg" data-gid="gid://syiq/Photo/373900">You mentioned changing demographics. How have buyer expectations evolved?Our average client age has shifted dramatically – from 60–65 down to around 45–50. Many younger clients are after adventure and exploration, and they’re often seeking more contemporary interiors, even in classically styled hulls. Our new 54 Adventure series, for example, was designed with a younger audience in mind. We worked with Bernd Weel on the design, and remarkably, the final version is almost identical to his first draft – he just nailed it.You’ve also hinted at moving into the 40–50-metre segment. Will those builds be on spec?No. I’m a conservative businessman. I don’t build anything on spec. Everything we build has an owner involved in the project. I’ve seen too many businesses collapse by overextending. We’ve designed and engineered a 43-metre model, and now, with a capable steel shipyard in the Netherlands, we’re poised to expand into that market.&nbsp;And geographically – where is&nbsp;<a data-gid="gid://syiq/Company/4433" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Outer Reef Yachts (Company)">Outer Reef</a>&nbsp;heading next?The Pacific Rim is a key growth area. We’re entering Indonesia and revisiting Australia, where we had a presence for 15 years. The Aussie dollar hasn’t been favourable in recent years, but we’re seeing renewed potential there. Europe remains strong, and with our new steel capabilities, we expect to grow significantly in the 24–50 metre range.Finally, what are clients asking for now that they weren’t before?There’s a real shift towards owner-operated boats and downsizing. Many are coming from 40 metre yachts and seeking something more manageable, with less reliance on crew. Design is also crucial – if you can deliver 50 metre interior volume on a 30 metre hull through smart design, you’re on to something. That’s where we’re focusing our energy.<img src="https://photo-assets.superyachttimes.com/photo/373899/image/large-63386133ac6a98a32018eb3d6f55dcdf.jpg" data-gid="gid://syiq/Photo/373899">This article was first published in issue 54 of the SuperYacht Times newspaper, available for&nbsp;<a href="https://www.superyachttimes.com/newspaper/newspaper-issue-54?utm_source=yachtchartermarket.com&utm_medium=referral&utm_campaign=cruising-asia-s-untapped-paradise" target="_blank">download here</a>.

Charting New Waters: Jeff Druek on the origins and evolution of Outer Reef Yachts

Jeff Druek on the origins and evolution of Outer Reef Yachts, expansion into Europe and plans for bigger yachts.