Deep Roots Distillery Case Study

Kyle Precourt

3/21/19

2-2 Journal: Final Project Introduction

The company that I decide for my final project this semester is Deep Roots Distillery. At Deep Roots Distillery, we are committed to using locally sourced ingredients to create exceptional spirits and liqueurs to give people a taste of what life is like on the stunning Prince Edward Island. This is the mission statement that I have written for DRD because it is evident from the case study that DRD is looking to create a quality local distillery for the people of Prince Edward Island and tourist visiting the island. On Prince Edward, the fruit is very diverse including 13,000 acres of blueberries, cranberry bogs, strawberry fields, and twenty-thousand apple trees making it very easy for Deep Roots Distillery to purchase these products and use them in their alcohols (Bemish 2016 p.32). DRD created unique spirits and liqueurs because it was a hands-on operation that uses craft pot/column distillery technology to allow for experimentation for different type of alcohols (Bemish 2016 p.2). With only small batches being created daily, if an alcohol did not taste or look perfect, DRD could scratch that idea and move on to another alcohol. Also, in the mission statement, it states where the alcohol is from because Prince Edward Island is a small community of 140,000 that has become loyal to Deep Roots Distillery in just two year of production (Bemish 2016 p.1).

The first core value for Deep Roots Distillery is continually striving to create spirits and liqueurs of distinct uniqueness and quality for customers on Prince Edward Island.  Mike Bemish has done a great job in creating six small batch alcohols from just one workshop in 2013. Mike should continue to learn his new craft and with the help of family he should be able to create these products that people will love purchase again and again. The next core value is remaining committed to providing all customers with consistently local fresh, quality product. Locally fresh fruits are one of the building blocks of DRD and it is important that they support local farms and Prince Edward Island when purchasing the resources for their alcohols. I believe if they stay committed to buying from only PEI businesses they will receive more local customers in the long run. The last value for Deep Roots Distillery is to have an open door policy where customers can come into the distillery and give them feedback about the alcohols at any time. This is important because the Bemish family needs to know what customers are thinking and what the customers want more of.

There are challenges in any start-up company and DRD is no exception to that rule. The first challenge that I found is the competition. There are a large number of tourists that come on the island every year (1.3 million) nevertheless; from September to June there are only 140,000 people on the island (Bemish 2016 p.1). So during the summer months it is critical that DRD has high volume and sales. When people come to the island and head to the PEI retail store they have thirty two different types of alcohol options. There are ten alcohols that are produced on PEI that can be bought at retail stores. With all of these choices for customers, it is very difficult for DRD to have market shares in the alcohol business in PEI. Another challenge for DRD is the lack of experience with making spirits and liqueurs. Mike Bemish and his son Paul did attend a one-week comprehensive course about the fundamental skills for distilling (Bemish 2016 p.2). However, many of the competitors and big name vodka companies have been mastering their craft of creating quality products for years. I believe Mr. Beamish needs to attend more workshops and conferences to get advice from experts in the field. The last challenge that I think DRD faces is the lack of marketing. Marketing a product can make or break a business. With the success of the company mostly riding on tourism, it is important that people see the product when they come to the island. DRD has many great ideas but they just do not have the finances. I would consider looking at the list of marketing opportunities and pursuing the lease expensive avenues. Loyal customers and word of mouth are great but in order to grow the business DRD needs to market their products. Some marketing may include promotion to local chefs, old home week cooking demonstrations, food island partnership, Charlottetown Farmer’s Market, magazines, and an open house at DRD where customers can sample (Bemish 2016 p.6). In addition, I think DRD needs to market tours and tastings at the distillery. Many tourists will look on trip advisor to see what the best tour is on the island.