Mya Patella
29 November 2015
Professor Sonoran
MAR2022
MARKETING TERM PROJECT [ CITATION McD10 \l 1033 ]
I. SITUATION ANALYSIS
a. Executive Summary and Organization Mission: The mission of 7Leaf
Vodka is to provide the U.S. with premiere organic hemp vodka that is
produced and distributed right here in Boulder, Colorado. We are eco-
conscious producers and our devotion to the preservation of our planet
compels us to utilize only the safest, most sustainable production methods
available, from hemp seed to finished spirit.
b. Environmental Scanning
Social/Cultural trends: Demand for organic products has skyrocketed
since more socially conscious options are available. U.S. retail sales of
organic food and products more than tripled to $32.3 billion over the
decade through 2013. Now, the demand for organic spirits has risen as
well. And as people change their drinking habits, the demand for
organics spirits grows.
Political/Legal: USDA states that when labeling a product as
“organic”, it must contain at least 95 percent organically produced
ingredients, not counting added water and salt. In addition, product
must not contain added sulfites and may contain u to 5 percent non-
organically produced agricultural ingredients allowed by 7 CFR
205.606 and/or other substances allowed by 7 CFR 205.605 in USDA
guidelines.
Technology: Alcohol distillation is a process that’s been done for
centuries. While traditional methods are always the way to go, there
are a few large-scale and batch distillers that are turning to more high-
tech operations and equipment to improve efficiency, flavor, and
product. With the technology now, the distilling process of liquor can
be re[ CITATION Kno15 \l 1033 ]cycled on-site at a bioenergy facility,
which harvests carbon from the organic matter and reformulates it into
fuel used to operate the distillery.
US economic situation: GDP has grown 2.6% in 2015, an increase
over 2014 growth of 2.4%. GDP per capita has also grown in 2015
over the previous years $54,370 to $55,904. The unemployment rate
has decreased substantially from 2012 at 6.10% to 2015 currently at
6%.
Natural environment that may affect the company: 7Leaf sources the
finest natural ingredients and combines them in perfect unison,
ensuring a completely balanced and unique award winning vodka that
is exquisitely smooth and earthy. Because 7Leaf uses natural Colorado
hemp as an active ingredient, appropriate farming weather is crucial to
our product.
c. Sales Trends: Vodka comprises approximately 34.1% of all spirits consumed
in the U.S. But following years of annual growth rates hovering around 6%,
the category gained only 2.5% in 2013, to an estimated 71.8 million 9-liter
cases, adding nearly 1.4 million cases to its sales total.
d. Market Share: Vodka has become the backbone of the spirits industry,
accounting for 32% of all volumes in the U.S. In 2012, 65.2 million 9-litre
cases of vodka were sold in the United States, generating $5.5 billion in
revenue for distillers.
e. Market Opportunity Analysis: Between 2010 and 2014, vodka
consumption declined almost 2% while whiskey sales rose 2.7%. Fortunately,
vodka has been the best-selling white spirit in the U.S. since 1967. In today’s
