Competitive Analysis

Entrepreneur launches drinks range

By Jonathan Guthrie

Published: September 13 2010 04:03 | Last updated: September 13 2010 04:03

Company overview

A new drinks brand born in Birmingham is set to revolutionise the way we drink cocktails at home. Tails is the brainchild of young entrepreneur Nick Wall, who has taken the germ of an idea in 2007 and developed it into a premium brand. The product, a sophisticated range of cocktails packaged in real shakers is sold exclusively across Selfridges’ four stores in Birmingham, Manchester and London before being rolled out to other high-end retailers.

Backed by support from the Manufacturing Advisory Service–West Midlands (MAS-WM)’s New Product Development Program and Business Link, the company expects first year activity to generate sales in excess of £600,000 with plans already in place to add new flavors to the existing three-strong range, look at promotional gift ideas and explore diversification. Retail price is £11.99.

According to Mintel research, the niche pre-mixed cocktails market is set to grow from £18m ($28m) in 2009 to £53m in 2014, as drinkers seek novel tipples. The drinks industry is dominated by global behemoths such as Diageo and Bacardi. In spite of this, or perhaps because of it, small entrepreneurs can sometimes gain a market foothold with new products if they are quick enough.

Five Competitive Forces

Beverage alcohol industry is very competitive for all corporations involved, as well as the entrepreneurs, with the greatest competition being that from rival sellers within the industry. Tails have to think about the pressures; that from rival sellers within the industry, new entrants to the industry, substitute products, suppliers, and buyers.

Rivalry

The competitive pressure from rival sellers is the greatest competition that Tails faces in the spirits industry. The global spirits market was worth $216bn in 2007 and is expected to reach $245bn in 2012. Evolving markets in BRIC nations,...