Case Study on the German organic lemonade pioneer Bionade

1. 02.11.2013
Angelina Lenz, Michaela Strobel, Alisa
Lennhoff
1

2. BIONADE
I.
Overview
II. Enviromental commitment
III. Marketing
IV. Product range
V. Expansion
VI. Sources
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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3. Overview
02.11.2013
Angelina Lenz, Michaela Strobel, Alisa
Lennhoff
3

4. The company
• A privately owned German company
• Situated in Ostheim, in the „Röhn“ area
• Founded in 1995 by Dieter Leipold
• About 100 employees
• Offshoot of the Private Brewery Peter
02.11.2013
Angelina Lenz, Michaela Strobel,
Alisa Lennhoff
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5. History
• Leipold fiddled day and night about the invention of the
first organic refreshment drink
• Not enough money to advertise the product
• Offered their license to big German breweries
 refused
• Bionade began to sell the drink in health ressorts and
fitness centers
 not enough purchasers
• Turning point: Bionade appeared in the Hamburg InLocation “Gloria“
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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6. Enviromental commitment
02.11.2013
Angelina Lenz, Michaela Strobel, Alisa
Lennhoff
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7. Environment
• The Röhn region:
o In Bavaria
o Low mountain rage embossed by volcanism
• UNESCO biosphere reserve:
o Preservation of cultivated landscape
o Support of agriculture
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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8. Memberships
• “Business and Biodiversity Initiative“
o Diversity of the ecosystem
o Diversity of species
o Genetic diversity within one species
• Project “Bio-Landbau Rhön“
o Steady supply of organic products
by local farmers
o New plants open up new markets
for local farmers
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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9. Fermentation
• Dieter Leipold dreamt of
“Fanta without Chemicals“
• Bionade is organically brewed:
o Fermentation of malt
o Brewed like beer via microorganisms:
o Bacteria gained from Kombucha-fungus
o Dextrose is transformed into fruit accid instead of
alcohol
• Patented fermentation process
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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10. Purity Law
• Bionade comitted to obey a purity law similar
to the German beer brewing purity law
• 95% of raw materials are according to EGRegulations organic
• Addition of artificial flavours, colouring and
preservative agents forbidden
• Guidelines of “German Unions for organic crop
growing“ are followed
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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11. Marketing
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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12. Advertising
• First Bionade tried to advertise solely on the
“Health Claim“
 New packaging design and strategy:
HIP LIVESTYLE BEVERAGE
• Sponsors cultural, sports and kid‘s events
• Advertising campaign:
All across Germany and straight across all target
groups
• Cinema spots, beer mats, posters, …
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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13. 02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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14. Market development
2002/03
2004
2005
2006
2007
02.11.2013
2 million bottles per year
7 million bottles per year
20 million bottles per year
70 million bottles per year
200 million bottles per year
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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15. 02.11.2013
Angelina Lenz, Michaela Strobel, Alisa
Lennhoff
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16. Expansion
02.11.2013
Angelina Lenz, Michaela Strobel, Alisa
Lennhoff
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17. Europe
• Export to:
Netherlands, Belgium, France, Sweden, Spain, It
aly, …
• Austria and Switzerland: took over 2 years to
establish the brand
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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18. USA
• 2008: Decision to enter the US market
• Corporation with another German company
• Plans to build a factory facility in Iowa
• Own plantations to grow organic ingredients
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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19. But:
• Bureaucratic hurdles (paperwork, money)
It took one year to get all permissions
• Lifestyle hurdles :
o Americans associate fermentation with alcohol
o Rivalry with CocaCola and Pepsi
• Nevertheless:
production will start at the end of 2009
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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20. Dilemma
• Expansion
vs.
Organic claim
• Boom of organic fruits led to shortage on
world market
• Bionade can‘t expand with products based
solely on organic fruits
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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21. Awards

22. Sources
• http://fazarchiv.faz.net/FAZ.ein
• http://www.bionade.com/
• http://www.managermagazin.de/magazin/artikel/0,2828,2660383,00.html
• http://ww.spiegel.de/wirtschaft/0,1518,590002,0
0.html
• http://www.sueddeutsche.de/wirtschaft/220/45
8868/text
• www.business-and-biodiversity.de
02.11.2013
Angelina Lenz, Michaela
Strobel, Alisa Lennhoff
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23. QUESTIONS?

24. THANK YOU
FOR YOUR ATTENTION