The bifurcation of plane waves to localised structures is investigated in the Dysthe equation, which incorporates the effects of mean flow and wave steepening. Through the use of phase modulation techniques, it is demonstrated that such occurrences may be described using a Korteweg -de Vries (KdV) equation. The solitary wave solutions of this system form a qualitative prototype for the bifurcating dynamics, and the role of mean flow and steepening is then made clear through how they enter the amplitude and width of these solitary waves. Additionally, higher order phase dynamics are investigated, leading to increased nonlinear regimes which in turn have a more profound impact on how the plane waves transform under defects in the phase.