...Founders Tom Scott and Tom First opened Allserve, a minimart on the water, which catered to boats and other water vessels in the Nantucket Harbour. They began serving the Nantucket Harbour area during the summer vacation in college. Their first product was released after graduation in 1990, and consisted of a recreated peach fruit drink. In fact, the product was first founded in Spain during Tom’s travels, and was thought of as a way to make extra money while abroad. Everyone admired the product resulting in the first Allserve General Store on the wharf on Nantucket Harbour. That is where the first juice name was established, Nantucket Nectars. The two gentlemen began the company with their life savings of $17,000, and contracted a bottler, along with a finance inventory. All this happened within the first two years of operations. The following two years displayed affects of undercapitalization. They had been operating on a small bank loan, which was clearly not enough to improve distribution and increase inventory. With that said, Scott and First had to sell 50% of their company to Mike Egan. The transaction gave Mike Egan 50% of the company for $600,000 of investment. Upon completion, the company showed it’s first profits in the fiscal year of 1995. Moving forward, through 2000, the company had been growing and gaining interested from outside buyers. Scott and First had to make a decision at this point: whether to 1) sell a portion of the company 2) partake in IPO or 3) remain...
Words: 579 - Pages: 3
...Nantucket Nectars Case study Starting a new business venture is never an easy task. However, perseverance and a strong will to succeed can lead to success. Nantucket Nectars is a perfect example of such a feat. The company went from a “floating 7-eleven” to a profit making company. It took several years and even selling part of the company in order to raise capital to continue the business but all the hard work paid off. The owners realized the potential for continued growth but knew that more capital was needed so they considered partnering up with a more known company. This meant that they would be putting their company for sale. They needed a well known company to help them distribute their products especially to the large chain supermarkets who so far had not been very receptive to their not “well-known” brand. The Nantucket Nectars’ owners had many pros and cons to consider before their company went public. They wanted to still be able to have control over the company’s everyday activities. Furthermore, they wanted for the company’s culture to remain the same. They valued their employees who had been there all along this journey. Their informal attire and approachability of the owners was important to them. So, whoever they chose would have to have a similar approach. That could be hard to find as most big companies are rather strict and are set in their ways of doing things. Based on the data provided in the case study such as table C...
Words: 367 - Pages: 2
...Nantucket Nectars Nantucket Nectars has captured America’s modern day lifestyle with its signature juices, quirky marketing, and intimate workplace. Tom and Tom’s huge success has drawn attention from bigger corporation such as Ocean Spray, Tropicana, Welch’s, Pepsi, and Starbucks. Nantucket Nectars should sign with Pepsi to keep the most control over their product and its image, allowing customers to still enjoy the item. Pepsi is a much better alternative to sign with because Tom and Tom would most likely have a better opportunity to keep up their current control of the company. Since Pepsi is not big in the juice market, it would allow Tom and Tom a lot of freedom in return for Pepsi’s entry into this market. Signing a contract with Pepsi that keeps upper management and main control with Nantucket is ideal. Pepsi can own a share of the company, but Tom and Tom can have virtual control over all other aspects in order to keep their company name and guarantee the same ingredients and quality that Nantucket has maintained thus far. Additionally, Pepsi is a worldwide name, allowing Nantucket Nectars possibly to reach a wider market of consumers. Pepsi could potentially provide a global market for Nectars. Pepsi would probably allow for the smoothest transition into a large corporation since Nantucket would make the most money and keep the most control under Pepsi. On the same token, Pepsi would want to acquire Nantucket Nectars as it would help increase its customer base...
Words: 499 - Pages: 2
...Nantucket Nectars: Case Study Carl Medeiros 5/1/2010 Tom Scott and Tom First started Allserve, a floating convenience store serving boats in the Nantucket Harbour during their summer holidays in college. After graduation, during the winter of 1990, Tom First recreated a peach fruit juice drink that he came across in Spain and started a side business selling his fresh juice. Everyone loved the product and they went on to open the Allserve General Store on Nantucket's Straight Wharf. They named the fruit juice "Nantucket Nectars". Tom and Tom invested both of their life savings, which was about $17,000 to contract a bottler and finance inventory in the first two years. The next two years saw them operating in an undercapitalized state on a small bank loan so in order to raise funds to improve distribution and increase inventory, they sold 50% of the company to Mike Egan. Nantucket Nectars achieved its first year of profitability in fiscal year 1995. As Nantucket Nectars continued to grow, they were eventually approached by several companies that were interested them. Tom and Tom had to decide if they should: 1) Undergo an IPO 2) Remain independent 3) Sell the company In order to provide a recommendation for Tom and Tom I will first need to conduct a SWOT analysis to assess the company’s strength, weakness, opportunities, and potential threats. Then I will weigh the pros and cons of the three options listed above. SWOT Analysis Strength Nantucket Nectars'...
Words: 1342 - Pages: 6
...NANTUCKET NECTARS IMPERATIVES FOR GROWTH - Access to larger distribution network with greater emphasis on the supermarket segment. - Access to new markets. Geographical expansion into the Midwest and West regions of the US, these areas currently account for only 9% of sales. - Reduction in cost structure, gross margins are currently at 34%. SWOT ANALYSIS Strength Nantucket Nectars have a unique all natural product line-up. They have a strong management team who has developed a strong brand. The management has been astute in exploiting the small and rapidly changing market opportunities in the single-serve section of the new age beverage market. They can create value for any large player who wants to play in the single-serve products market. Weakness: The company has limited financial resources and this has become evident in its limited access to larger distribution channels. The company is unable to access the supermarket channels with only a 1% sale via this channel versus 55% for the overall New Age beverage Market. Sales by Nantucket Nectars have been mainly through other channels invariably cutting of a significant portion of potential consumers. The company has limited futures contracts and relies heavily on expensive spot market for sourcing its major raw material, thereby impacting its margins severely. Opportunity Nantucket Nectars have received unsolicited expression of interest for a part sale from Ocean Spray, Triac and Pepsi. Threat The intensity of...
Words: 682 - Pages: 3
...Nantucket Nectars Nantucket Nectars Tom Scott and Tom First started Allserve, a floating convenience store serving boats in the Nantucket Harbour during their summer holidays in college. After graduation, during the winter of 1990, First recreated a peach fruit juice drink that he came across in Spain and started a side business selling fresh juice. Everyone loved the product and they went on to open the Allserve General Store on Nantucket's Straight Wharf. They named the fruit juice "Nantucket Nectars". Scott and First invested their collective life savings of about $17,000 to contract a bottler and finance inventory in the first two years. The next two years saw them operating in an undercapitalized state on a small bank loan. Subsequently, in order to raise funds to improve distribution and increase inventory, they sold 50% of the company to Mike Egan. Nantucket Nectars achieved its first year of profitability in fiscal year 1995. Nantucket Nectars continued to grow and in 2000, they were approached by five companies that were interested in acquiring a portion of the company. Scott and First had to decide if they should: 1) sell a part of or all of the company; 2) undergo an initial public offering (IPO); or 3) operate under status quo. They had several questions that they would like answered. If they do proceed with the sale, how should they negotiate for a maximum price? How could they hold the meetings with the prospective buyers and not let the employees find...
Words: 319 - Pages: 2
...Nantucket Nectars: The Exit Nantucket Nectars has been a success since its inception in 1990. With a focus on distribution and a commitment to quality, taste, and brand storytelling, Tom Scott and Tom First built a $30 million brand in just seven years. However, as the company continues to grow, Scott and First need to decide whether to stay onboard and reap the benefits of their company’s success or sell Nantucket Nectars while they’re ahead. The first option of selling the company faces both opportunities and obstacles. Selling the company will give it access to a more experienced management team, since a bigger company will be acquiring the brand. In addition, it will provide the company financing, which will accelerate its growth. On the other hand, proceeding with the sale of Nantucket Nectars has the disadvantage of the uncertain outcome of the current 100 employees. The potential buyer could fire all the employees and even keep the two Toms from running the company. This option also poses a threat to the laidback Nantucket Nectar company culture, which could transform into a more corporate,...
Words: 641 - Pages: 3
...Nantucket Nectars has many options that determines their future at the time of this case. They are faced with a decision to remain independent, go public, or sell. The managers are comfortable with any of the options; however, pros and cons exist for each possible decision. Decision One - Go Public with an IPO If NN were to go public and have an initial public offering, many benefits would arise. First, the company would receive instant capital funding. Given their financially problematic history, financially uneasy present, and robust growth plans NN would be able to settle many of their financing issues and reduce their worry of compromising their product for the sake of costs if they were to go public. An IPO would also allow the managers to remain in control. A large concern of Scott and First was how the company would be managed after a decision. With an IPO, at least Scott and First would be able to manage NN according to the plans they have already strategized. Going public would greatly increase the brand awareness of NN. They know the value of their “quirky” and “memorable” brand and feel that they have tremendous geographic growth opportunities. An IPO would generate more awareness and, in turn, generate more consumer demand for the product. The downsides of going public also could arise. First, despite their control retention, management would have to now report to the shareholders associated with an IPO. Since it would be their “job” first to make the...
Words: 1267 - Pages: 6
...Harvard Business School 9-898-171 Rev. December 11, 2000 Nantucket Nectars Well, we knew we were in an interesting position. We had five companies express interest in acquiring a portion of the company. Sometimes you have to laugh about how things occur. Tropicana (Seagram) and Ocean Spray became interested in us after reading an article in Brandweek magazine that erroneously reported that Triarc was in negotiations to buy us. (See Exhibit 1 for a copy of this article.) At the time, we hadn’t even met with Triarc, although we knew their senior people from industry conferences. We have no idea how this rumor began. Within weeks Triarc and Pepsi contacted us. We told no one about these on-going negotiations and held all the meetings away from our offices so that no Nectars employee would become concerned. It was quite a frenetic time. The most memorable day was just a few days ago actually. Firsty and I were in an extended meeting with Ocean Spray, making us late for our second round meeting with Pepsi. Ultimately, Tom and I split up: Firsty stayed with Ocean Spray and I met with Pepsi. Ocean Spray never knew about the Pepsi meeting. Tom and I have learned under fire throughout our Nectars experience, but this experience was a new one for us. —Tom Scott, co-founder of Nantucket Nectars Research Associate Jon M. Biotti prepared this case under the supervision of Professors Joseph B. Lassiter III and William A. Sahlman as the basis for class discussion rather...
Words: 10441 - Pages: 42
...Supply Chain Management Fruit juice- Dabur Nepal Pvt Ltd. Dabur Nepal has been producing fruit juice in Nepal for many years. The major fruit juices produced by Dabur Nepal are:- • Real • Activ The major raw material required to produce these juices are:- • Fruit pulp (orange, apple, mango etc) • Concentrated • Sugar • Water • Natural flavors The majority of the mango pulp comes from the India, while other fruit pulps like: - apple, orange, cranberries are imported mainly from Europe. Sugar and water are obtained from the domestic suppliers of the country. Beside juice productions, for other major products of the Dabur the major supplying companies are: - Orano, Doehler, LDC. In Dabur, the spices are imported from Indonesia, Glucose from china, and palm oil from Malaysia. In Dabur, the sales and marketing department forecasts the demand for fruit juices for coming 6 months. They use the system developed by SAP inorder to forecast demand and manage their inventory. RPP (Revolving Product Planning) is used to determine the market requirement once a month. Through this system they are able to determine what and when the raw materials are required. The SKU (Stock Keeping Unit) has the FG code for every item. Then the system determines the purchase requirement. After that the purchase order is placed by the company to their suppliers. After the raw materials are received from the suppliers, quality testing of the material is done. For the quality test, 5 days...
Words: 403 - Pages: 2
...|BUSINESS PLAN | |ESSENCES | |Vegetable Juice | |BBA 6 | [pic] Sehrish Inayat (090016) Sarah Masood (090014) Fatima-Tu-Zahara (090028) Tahir Ayub (090006) EXECUTIVE SUMMARY Juices consumption is high because of increased awareness of health consciousness among people. The competitive analysis identified that competition within the industry is high as the industry has some humongous names in it i.e. nestle, shezan, fresher etc. The application of Porter’s five forces to the Pakistani juice industry provides us a view of the potential attractiveness in terms of profitability of the industry. By doing PEST analysis we have learnt that although the political situation of the country is not satisfactory but the GDP and per capita income has increased and raised demand of FMCG’s. The awareness about health consciousness has increased a lot and people are accepting vegetable juices as a regular and healthy drink. SWOT analysis reflected that the industry is full of opportunities. In the end, the strategies for launching vegetable juices are quite similar which were used while launching fresher. The vegetable juices will initially be launched only in flavors that are commonly accepted by the public i.e. Celery, Spinach, Kale, Collard, Greens, Lettuce, Carrots, pumpkin, Cucumber and Mixed vegetable etc...
Words: 5274 - Pages: 22
...2.1 Micro-environments Micro-environmental analysis model used to analyze the internal business environment as. Company The company under analysis Atlantic Quench is manufacturing and distributing the fruit juices since 80 years in the US and now in the UK also. Atlantic Quench is famous for its Cranberry juices and dried Cranberry i.e. Crantanas. The company made the strategic alliances for its manufacturing and distributing of fruit juices with Gerber and Coca-Cola in 2013 and 2007 respectively (Ofori, 2013). The company has to buy raw materials at high price and unpredictable harvesting of Cranberry affects the share value of it. The company is famous for its canned and bottled juices and has introduced diet, white Cranberry and other flavored juices. Competitors The company Atlantic Quench has its competitor in its every field of work from manufacturing to selling of the product i.e. Fruit juices. In the UK, the consumers are health and diet conscious, so the company has larger market for its product range. The company faces cut throat competition in the UK with Tropicana, Rubycon and The ChagWorth Valley. According to the recent report about the Fruit juice and products, Tropicana is the leading brand with around 15% market shares in the UK (Elepu, Nabisubi, and Sserunkuuma, 2016). Customers Atlantic Quench has consumers in all the segments of the market, whether children, youth or adults. The people of the UK are health conscious so the company has wide market...
Words: 846 - Pages: 4
...VIRGINIA INTERNATIONAL UNIVERSITY COURSE: MBA 500 MANAGERIAL COMMUNICATIONS (A) DATE : OCTOBER 29, 2012 TO : DR. ONU FROM : TEAM 4 SUBJECT : A SHORT REPORT ABOUT STUDENT CUSTOMER’S BEHAVIOR IN BANGALORE TO VEGETABLE JUICE PAGES : 9 I. SUMMARY Indian students don’t drink vegetable juice much. Primarily, they drink soft-drinks, fruit juices, and hot drinks. They buy beverage at school, groceries stores, and gas stations sometimes. 90 percent of students drank vegetable juice before but a portion of them don’t want to drink it anymore because of taste. Indian students like vegetables such as tomato, potato, carrot, etc. and spend about 8,000 rupees on average for foods and drinks per month. Price is the primary factor when they consider to buy a product. Major Indian students use products that can help them in learning and willing to recommend vegetable juice for their friends and relatives. In order to capture this market segment, Coca-Cola should do market and customer behavior carefully before launching new line of vegetable juice production. Coca-Cola should consider the places, price and recipe for the product. Moreover, they should diversify the range of vegetable juice also and a good marketing strategy can help them to win customer. II. BACKGROUND Coca-Cola wants to establish the new line of production, vegetable juice to Indian students in Bangalore. This report is analysis and recommendation of the recent...
Words: 1395 - Pages: 6
...Case Study: BOOST Juice While a prime reason for choosing any drink is to quench one’s thirst, it is when consumers continually demand a particular brand that marketers know they have done their job well. There are many ways in which we san slake our thirst, and large amounts of money are spent on positioning branded drinks in various categories – such as those competing in carbonated beverages, water and milk drink sectors – not to mention the sums spent on convincing us that we need to drink more of that type of drink. You might think there is very little room left to grow the market, or feel that the industry is overcrowded. After all, Australasia isn’t North America, which has almost ten times the local population. California alone has the same population as Australasia. Nevertheless, while there have been failures, juice bars targeting the health-conscious have sprung up in many different locations, particularly in shopping malls. A big player in this market, Boost Juice, was founded by Melbourne-born Janine Allis in 2000. It experienced 257% growth in 2003/04 and by then had 100 stores and a turnover of nearly $20 million. By 2007 there were 180 stores throughout Australia, with three in Chile, two in Indonesia, and one each in Kuwait, Singapore and Dubai, and turnover had risen to over $90 million. All this in seven short years! More than 150 of the stores are franchise operations. When high-profile investors such as the co-founder of Flight Centre, Geoff Harris, testify...
Words: 658 - Pages: 3
...| Jon Snow | | Jon Snow | Table of Contents Introduction 1 Data Analysis 1 Discussion 2 Conclusion 3 Recommendation 3 Introduction Hammer Wines is introducing a Mobile App to retail outlets, enabling fruit juices to be dispatched from smartphones. This will help the entity to reduce its paperwork and also improve Hammer Wines’ service quality for order deliveries. In order to promote this new Mobile App to current customers and encourage for the app to be downloaded, emails have been sent informing them of the added incentives that will be provided upon downloading the application. The sales promotion has been planned over a 5 week period. During this time, the apple and grapefruit juices have been advertised through the use of email/texts to current customers, while the orange and mandarin juices were advertised via the smartphone app. This variation in promoting methods helps to explore the impact of the Mobile App and unique use it has on sales performances during the 5 week campaign. The purpose of this report is to discuss the advantages of implementing a Mobile App at Hammer Wines and to discover the overall influence it may have on sales performances of fruit juices. Data Analysis Apple and grapefruit juices were advertised through the email/text marketing strategy, while the orange and mandarin juices were promoted via the new Mobile App. Over the 5 weeks, total sales figures for the apple juices have increased...
Words: 891 - Pages: 4
