Nantucket Nectars

Nantucket Nectars

The main idea of the Nantucket Nectars case is strategy for growing from a small start up business to a dominant corporation, and specifically if a small business should sign with a bigger corporation. Two Brown University Alumni Tom First and Tom Scott started Nantucket Nectars. During the summers of college, First and Scott created a floating convenient store in the Nantucket Harbor. They sold everything from beer to newspapers, but in the spring of 1990 Frist incorporated his newly discovered peach fruit juice drink into the small business. After the juice was a huge hit, the pair decided to open their first Allserve General Store. 4 years of grinding out the business eventually lead to the big time investment of 600,000 dollars by Mike Egan. Egan invested in the business so it could broaden its distribution and increase inventory. In exchange, he received 50% of the company. Part of the reason the company was showing signs of success was the First and Scott’s drive to make the company prosper. In the beginning Tom and Tom acted as their own distributers. They travel from store to store stocking the selves so their product would receive the prime position. Another reason Nantucket Nectars was able compete against huge corporations like Snapple and Ocean Spray, was the owner’s ability to sell their story. They were the underdog fighting and uphill battle, but they were using their position to their advantage in a pro-capitalistic America. However, there were other key moves that were made my Nantucket Nectars to ensure their success. One of the most import efforts was the decision to piggyback off the wildly expanding Arizona Ice Tea. Tom and Tom gained the exclusive selling rights to Arizona Iced Tea in Massachusetts. They used this contract to push their own product along with the popular iced tea. Nantucket Nectars had made all the right moves, and now that the product was so popular many of