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CASE STUDY

Nantucket Nectars

This particularly case is about a company called Nantucket Nectars which proved that good entrepreneurship is the key factor for successful business start up. The two founders Tom First and Tom Scott in 1990 came up with an idea of producing and introducing high quality juice to the new age beverage market after their trip to Spain. At the early beginning, the future of the product wasn’t so bright because in the first year few employees hadn’t been paid for their work and also the two founders Tom First and Tom Scott haven’t seen any profit in a three and a half years. The turning point was the 600.000 dollars investment from Mike Egan who was former CEO in the car rental business and it was looking ahead in this new challenge. After several years of hard and successful work the company finally made a profit by selling from 2,000 to 30,000 cases per month and by the end of the 1994 the revenues surpassed to 8 million dollars. It should be said that the two founders were little bit afraid and confused when they wanted to know how much the company worth on the market because they didn’t knew. The main issue was that they were in dilemma whether to continue with the business at this level or to sell the company for fair price. According to me they should have searched more investors in order to raise the company strength and continue with their good work. At that time the New Beverage market was full of companies that wanted bigger piece of the cake so it wasn’t easy for Nantucket Nectar to entry and stay on the market as new company. The competition was big because the product innovation was critical element of competitiveness and created an incredible battle for shelf space, especially among regional companies focused on differentiating themselves through flavors, packaging and image. The most successful companies at that time like Coke, Pepsi and Seagrams were fighting and struggling to become the

best “Total beverage...