Page 7 - Chase Case Study Final

Where rival small producers simply buy cheap base spirits made from
grain for around 25p a litre, which are then run through their own stills,
Chase’s protracted and vertically integrated processes bring the costs
up to around £4 a litre; it takes 250 potatoes to make each bottle of
Chase Vodka.

The potatoes are grown, mashed and distilled on a 400-acre farm – a
former government research facility – bought for £4m.

From the idea in 2004, it took until April fool's day 2008 to produce the
first potatoes and then make the first batch of vodka in June 2008.

The artisan distilling process was carried out by ten employees,
including Chase’s two sons, and was and is “expensive and laborious”.

Chase vodka is made in a Heath Robinson-style distillery, bubbling
homegrown Lady Claire and Lady Rosetta spuds through a traditional
still with hand-controlled steam valves and a 70-foot copper rectification
column, the tallest in Europe - costing £2million. Intensive also means
expensive. A single bottle of Chase – packed with up to 150 potatoes –
sells for more than £30.

The very first bottle of Chase vodka was produced in April 2008 and took
two years in the making, pitching it directly against premium vodkas
such as Grey Goose and Belvedere.

The company had its first ever break-even month in June 2010.

However, Chase had to educate the market and persuade consumers to
try an up-market vodka like Chase Vodka. “In bars people now tend to
ask for their spirit by name. Our target market is mid-20s to mid-50s,
people who want to buy something that’s high-quality, smart and savvy.”

Chase used a number of ways to reach consumers, including attending

big sporting events like Wimbledon and Cheltenham Races. He also
exploited the potential of social media. “We want to grow on Facebook
but we don’t want to be cheap or tacky. But at the same time, we don’t

want to be pretentious either.”