Knock Knock – Who’s there…
Me – Am the Lazy Entrepreneur
You: Oh, that’s you, welcome back
You: So what’s happening…
Me: All good. Currently working on some pretty interesting projects…
Me: But today I have come to tell you the story of Shakes and Mocktails
You: Okay, I am getting thirsty to hear it
The year 2015/16 was two/three years in my food distribution business; One scorching,
bright sunny afternoon, I was sitting in the shop, and we had visitors; two dynamic individuals.
We were about to create some magic in the market….
The Product
Mocktails are non-alcoholic drinks made with juices, syrups, and other ingredients, similar to cocktails but without alcohol. They are similar to cocktails in presentation but of course with no alcohol.
Shakes are a popular beverage that is typically made by blending milk, ice cream, and flavourings together. They can be enjoyed in a variety of flavors, such as chocolate, strawberry, vanilla, and more. Shakes can be served in many different ways, such as thick and creamy, or thin and smooth.
The market and the growth factors:
The beverage market (mocktails and shakes) in Gujarat was still at a very nascent stage, with only one dominant player, Monin, the French premium syrup company. The brand was synonymous with syrups, much like Colgate is to toothpaste.
During this time, the F&B industry experienced rapid growth in Gujarat, especially in Ahmedabad. Fine dining restaurants, coffee shops, and cafes were on the rise, with shakes, mocktails, and coolers featuring prominently on their menus.
The region’s climate is conducive for this category to grow, with around 9 months of heat in Gujarat out of the 12 months, with April, May, and June being the hottest.
Gujarat, the birthplace of Gandhiji, and due to local regulations, prohibits alcohol
officially :-). As a result, mocktails have become a popular option instead of cocktails.
Taking all these points into consideration, DaVinci the beverage syrup brand from the
Kerry Group made an entry in the Gujarat market.
Our Association
It was the summer of 2015, these two executives entered our shop, I was lazing around :-).
They were looking for my partner and incidentally he was out of the office.
After exchanging our respective visiting cards, we settled down for a discussion. They helped me understand their product, their brand, and what they were looking for… i.e. a distributor who could take forward this product/brand in the market.
Nearing the end of our meeting, my partner came and like thorough professionals, these gentlemen repeated the entire exercise again. And too with the same enthusiasm…
Their pitch was successful.
DaVinci Product Range
Some of the Davinci Product line include
Classic Syrups: These syrups come in a wide range of flavors, including vanilla, caramel, hazelnut, and mint mojito.
Fruit Innovations: These syrups are made with fruit flavors, such as strawberry, raspberry, and peach.
Sauces: DaVinci also offers a line of sauces that are used to add flavor to drinks and desserts. These include chocolate, caramel, and white chocolate sauces.
The Good, The bad and The Better
The Good – We were appointed the sole distributor for Ahmedabad and C&F for
Gujarat except for Surat.
The Bad – We were entering an area with a limited domain knowledge
The Better –We had already established our presence in the restaurants and café’s
where this product was to be introduced. In addition to those, we planned to expand
our target market and included restaurants that served Indian cuisine and even
South Indian. 🙂
One plus One = Eleven
To achieve victory in a match, it is essential for all eleven players to perform their best, and the same holds true for any business. A distributor plays a crucial role in the last-mile delivery and supply chain management of any business. A company that recognizes this and collaborates closely with its last-mile deliverers is more likely to achieve success.
This was also the case for the sales team at Davinci, which included everyone from the
National Sales Head to the Zonal Sales Manager and even their mixologists. By working together, we created a formidable presence in the market and gradually but methodically captured a significant share of the market.
Demos, Demos, Demos…
As a distributor, our job was to identify the potential customer and send the introductory information to the decision-maker and a consolidated list of these cafes/restaurants to the company.
Following our initial outreach, the company would arrange for a visit by their mixologist (twice a month) who would provide a detailed product demonstration. Typically, the mixologist would be accompanied by the Regional Sales Manager (RSM) to negotiate and finalize the deal.
As representatives of the company, one of us would also accompany the team during the demo to facilitate the process.
In less than two years, we were able to create magic and witness significant growth in our clientele. Our customer base grew by leaps and bounds.
So what went right?
The right product at the right time with the right pricing backed up by the right team.
The right product – The brand DaVinci has international tie-ups with Starbucks and McCafe.
We leveraged this association which helped us in breaking the ice (literally).
The frappe powder was a mega-hit. This was the game-changer product. No other company could match the quality it offered. It was a trusted substitute for milk in a shake. There were many advantages of using it viz-a-viz milk.
The CocoGourma did wonders for the chocolate-loving consumers of Gujarat.
The right team: The dedicated team of Davinici pushed us to the core and we also responded positively.
The right pricing – The pricing strategy was spot on, providing customers with significant savings on raw material costs while increasing the per-glass yield. This allowed the café to benefit from serving additional glasses, resulting in pure profit.
Within a short span of two years, we were able to establish our brand and become the market leader, particularly in the Ahmedabad region. I can confidently affirm our success in this market. This also resulted in many more beverages brand making their entry into Gujarat market.
We are proud to have played a significant role in establishing this brand in the B2B market.
Personally, I found working on this project to be the most exciting, as it allowed me to learn the art and science of creating delicious shakes, mocktails, and coolers. And believe me, it is not as easy as it looks. There is too much technical know-how that is required to make the perfect drink… J
But The lazy entrepreneur could make one…
Keep drinking till the next read part 5 of the lazy entrepreneur (Bread and Cakes)
But…
Don’t Drink and Drive… 🙂
nice Blog : continue writing the right way: blogs and dogs are faithful,can guid you anywhere be careful :
Remembar Head wins,not _ tails always,🥳