Faculty may use this case study for an entrepreneurship or management course exercise.
This case prepares students for key challenges and unexpected surprises that come with Social Entrepreneurship, and encourages them to think through solutions.
Single Serve Packaging (SSP) is providing established wine companies with a new alternative packaging solution that solves the problems associated with glass, liquor license laws, health and safety laws, and carbon credit calculations. SSP is taking wine where it could not comfortably go before, giving wine greater reach and ultimately wine company’s access to new markets.
SSP is an innovative wine packaging company that offers a ready to drink, single-serve glass of wine, which is hygienically sealed in a convenient and stylish outdoor, plastic wine glass. The plastic wine glass is made out of high-quality PET (Polyethylene Terephthalate) and holds 187ml wine. To maintain wine quality and freshness the wine is covered under a blanket of inert nitrogen gas and securely sealed by a specially designed laminated foil seal, giving a shelf life of approximately 1 year. It can be consumed in places where glass is considered to be unsafe, inconvenient or environmentally unsound. The finished product is 100% shatterproof and in fact near unbreakable.
The Asia Pacific wine market generates revenues of 16.5 billion and expected to be close to 20.3 billion by the end of 2013. China constitutes the largest wine market in Asia-Pacific generating 35.3% of the regional revenues. Japan accounts for a further 24.5% of the regional value.
Recent findings by Planet Ark show the catering / hospitality industry accounts for two thirds of Australia’s waste, equating to approximately 2.17 million tons per year. This figure proves a need for more environmentally friendly products and ultimately, more environmentally friendly packaging. PET boasts a 36% lighter overall product weight compared to glass, resulting in a 29% reduction of greenhouse gas emissions over the lifecycle of the product. Furthermore, the thin nature of PET means the product will chill faster, thus requiring less refrigeration time. The benefits for the catering/hospitality industry is a reduction in service time by 85% when comparing to a 750ml bottle.
SSP wishes to raise AUD$750,000 in new capital for a 53% shareholding in the company. The raised capital is to go towards a purpose-built filling machine to the value of 245,000 pounds as well as towards raw material purchases and other working capital requirements. From existing shareholder resources, SSP is currently finalizing payment of a deposit of 100,000 pounds towards this machine, in order for its manufacture to commence. Total build time is estimated at 12 weeks.
Georgia tells the SSP story in two parts: Part A describes the start and growth of SSP. Part B describes some of the key challenges she faced, solutions, and lessons learned