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Deep Roots Distillery

Paul W. Beamish

Product #:9B16M032
Supplier:Ivey
Discipline:Entrepreneurship, General Management
Setting:Canada, 2015
Details:Case (PDF) • 11 pages • 2016-03-09 (Rev: 2019-08-29)

Subjects:

Industry analysisMarket segmentationBreakeven analysisStrategic analysisMarketingFinancial plansFamily businessesEntrepreneurship

Industries:

Food and beverage sector

Geography:

CanadaNorth America
Your Price:$9.71

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By September 2015, Deep Roots Distillery (DRD) had been operating for 22 months. While starting up had taken a little longer than originally estimated, material progress was now evident. By November 2015, the company expected to have six of its products (either spirits or liqueurs) available in the Prince Edward Island liquor store outlets. However, numerous questions remained for DRD’s owner and his small, family-run business. Given capital and resource constraints, how could DRD grow into a competitive business? How should time be allocated between research and development, production, marketing, and administration? Would the start-up’s current product/market strategy allow it to achieve its goals? If not, which expansion route should DRD take?

Learning Objectives

This case is intended for use in a strategic management or entrepreneurship course. Within a strategy course, the case could be used near the beginning to underscore the need to have a very clear product/market strategy — one which demonstrates a competitive advantage.

Within an entrepreneurship course, the case may be used in a section dealing with small (family) businesses and/or start-ups. A complementary family business case is “Prince Edward Island Preserve Company: Turnaround” (Ivey Publishing product no. 9B08M049). Both PEI Preserves and DRD depend in part on tourism.

A portion of the case also deals with marketing. DRD’s founders need to prioritize their efforts among more than 20 marketing steps undertaken to date.
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Case Study: Deep Roots Distillery (English version) | Ivey Publishing