Ever since Sidney Frank sold Grey Goose in 2005 for billions of dollars, the industry has attracted many entrepreneurs with the dream of inventing a brand, building it, flipping it and moving on to the next one.
It’s a good thing. The growth of the industry, any industry, depends on the infusion of new ideas, capabilities and fresh passion. Look at the rising stars, fast track and hot brands of the industry. You’ll find lots of entrepreneurial and start up brands.
And, as I mentioned in previous posts, success comes from hard work and the tenacity of people not large corporations.
But for every winner there are loads of wannabes whose eyes are bigger than their stomachs. An investment banker friend described it this way —
“Almost every week I get a guy coming in, generally in his 30’s, who made some money in some type of entrepreneurial venture, was out drinking with his buddy and the two of them decide they can do this…build a winner. It’s usually a vodka with an over the top package, a half-baked story and they say they’re out every night pushing the brand. Most of the time I think that they use the brand and their ‘ownership’ to impress the ladies.”
There’s an old rule in new product development. A winning idea needs to be unique and relevant. To succeed, a brand needs both.
Also luck, the byproduct of hard work.
Keep your eye on Cachaca, Sake and specialty products.