Nova Scotia Distilling Audit Report PESTLE Analysis Political Economic Social Along with receiving accolades from prestigious tasting events around the world, Craft distilleries are making the biggest impact right here at home when compared to their comercial competitors. The nature of craft distilling work is very hands on and usually requires a good number of full time employees. Because the distillers are local that means the majority of the money that comes into these distillers will stay in the province. Additionally, distillers are incentivized to use Nova Scotia agricultural products further supporting the local economy. Along with the economic benefits …show more content…
A 750mL bottle of Ironworks costs $39.80, while the same size bottle of Smirnoff retails for $27.49. The consumer segment for craft spirits is less price sensitive than many other segments in the overarching spirit market, due to the difference in value and benefits delivered delivered by this product. The unique bundle of benefits delivered by each craft distilled product lends to the development of loyalty, reducing the propensity to substitute. Craft distilleries in Nova Scotia put a concerted effort in differentiating their products in the market, in terms of the the actual components that go into making each product and their respective marketing mixes. For example, Ironworks makes an exclusive Pear Eau de Vie brandy that has a pear grown in the bottle and sold in very limited quantities. Craft distilleries have an advantage over bulk producers and import products due to the perceived level of product differentiation and the associated bundle of benefits. These perceived benefits are particularly appealing to segments concerned with the consumption of premium and local/sustainable products. The number of substitute products, the ease of substitution and the availability of substitutes (even within a local context) act as threats to small craft distillers. A plethora of substitutes are easily accessed and readily …show more content…
Craft Distilling competition: currently 16 craft distilleries in nova scotia, they are limited to 75,000 litres of alcohol production per year, and are required to pay a $500 fee for the permit, as well as $100 if the distillery offers an on site retail store, and another additional $100 if there is a tasting room. If the limit is exceeded they are considered to be a full time Distillery, which has attached fees of $1000 first year of operation and $2000 every year after. Proof of insurance is also required prior to obtaining a permit. Ex. offer airbnb, offer broader products(water, coffee, everything consumers normally drink with seacoast name on it) brand image, allow people to feel apart of the company(ironworks promotes themselves as being “the spirit of