Problem
The decision to not consume alcohol in social settings is one that many Canadians routinely make because of their desire to serve as designated drivers as well as the growing number of people who simply don't drink-including baby boomers intent on reducing their alcohol intake, pregnant or nursing women, individuals who need to avoid alcohol due to prescription medications, and those who do not drink for religious or cultural reasons. In fact, the alcohol-free drink market represents over a billion dollars in sales at the retail level, however, many consumers cannot actually name a brand of non-alcoholic or reduced alcohol beverage, and brands that are available have limited retail distribution. This according to Brian Bolshin, CEO and president of MADD Virgin Drinks, is part of the reason why his company decided to enter this burgeoning market. "We're big supporters of Mothers Against Drunk Drivers (MADD), so we thought, wouldn't it be great if, instead of just telling people not to drink and drive, we could give people an alternative that was a little more fun."
MADD Virgin Drinks is an alcohol-free line of beverages licensed by MADD Canada and includes alcohol-free red and white wines, alcohol-free champagne, alcohol-free cocktails including Margaritas and Mojitos, and a soon-to-be released craft beer. The MADD Virgin Drinks line of non-alcoholic beverages can be found at select Shoppers Drug Mart and Sobeys stores across Canada and Staples Advantage Canada (the business-to-business division of Staples). Ten percent of sales are directed towards MADD to help support the on-going efforts of this national, charitable organization that is committed to stopping impaired driving and supporting the victims of this violent crime.
For MADD Virgin Beverages, the opportunity to support the ongoing efforts of the MADD organization and to leverage the recognition and credibility of the MADD brand name to provide an alcohol-free alternative to an increasingly growing and diverse consumer market created a competitive advantage that formed the basis of their company's business concept.
DISCUSSION QUESTIONS:
a) Do you think MADD Virgin Drinks has a sustainable competitive advantage?
b) What other growth opportunities could the company pursue in terms of line extensions or new target markets?