Scott McBride is the owner of Harvey’s Butter Rum Batter. Harvey’s is a sweet, buttery spiced mix used to make hot beverages and other special treats, and is produced in small, handcrafted batches using the highest quality ingredients, including fresh butter. This single-product company has a small but loyal following in the Pacific Northwest. Currently the product is attempting to disrupt an existing market for hot, spiced holiday beverages. Thus, sales are very seasonal, concentrated in the colder months. Harvey’s Butter Rum Batter is sold mostly in Washington and Oregon through distributors who sell to grocery stores, liquor stores, bars, and restaurants. Some larger grocery chains buy directly from the company. Additionally, the company leverages their distinctive brand and a small-but-loyal following by utilizing word-of-mouth advertising to drive traffic to the website, following a direct-to-consumer model. This model accounts for 20% of their sales. Harvey’s core customers tend to be older, with a median age of around 40-45, have a higher than average median income, and are predominately white, purchasing Harvey’s through supermarkets or independent grocery stores, accounting for the remaining 80% of sales. There is one major competitor in the regional market, a Hot Buttered Rum Mix from Reser’s Fine Foods. In informal side-by-side taste tests, however, most people prefer Harvey’s. To drive sales and decrease seasonality effects on their revenue stream, they have recently added a recipe folder to their packaging to encourage customers to try the product for different uses, year round. They are investigating development of other products that use the Harvey’s flavor profile, such as candy and ice cream.
UW Marketing 555 