FERAGAIA

The Original Free Spirit

About Feragaia Feragaia is a distilled alcohol-free spirit made from land
and sea botanicals from the Scottish Lowlands.

Feragia introduces vibrant and refreshing flavors,

featuring zesty lemon and lime citrus accents,
complemented by a fresh blend of resin and herbal notes.
These elements gradually evolve into an earthy, woody
essence with a subtle hint of smoke, culminating in a
gentle warmth from cayenne pepper, accompanied by a
delicate lingering hint of malt.

Scotland is known for its exceptional food and drink brands,

found in top establishments globally. Feragaia marks a new
era in Scotland's culinary legacy. Its founders innovatively
combined traditional distillation techniques with modern
methods to create a world-class alcohol-free spirit in the
process.
Analyses for determining Feragaia’s competitive stance
A) Porters 5 Force Analysis (Non-alcoholic spirits industry)
• Threat of new entrants (Moderate Force):

• Threat of entrants is moderate because of high barriers to entry due to high startup
costs and need for specialized knowledge and skills in distillation techniques,
botanical sourcing, and flavor profiling.

• Established brands like Feragaia (5 years), Seedlip (8 years), and Lyre's (5 years)
already benefit from economies of scale.
• Established brands like Feragaia already have strong relationships with retailers and distributors (Amazon, Selfridges,
Harrods etc.)

• Established brands like Feragaia have already invested in research and development to create unique flavor profiles and
branding strategies.

• However, the potential for innovation and market growth (players in this industry are limited) may attract new entrants.
Overall, the threat is moderate.
 2. Bargaining Power of Suppliers (Low Force)

• Feragaia sources botanicals locally, either from its own HQ in Fife

or through local partners.

• Feragaia requires suppliers to fill out its social and environmental

questionnaire and review and update its policies.

• Feragaia looks for quality, transparency, and certification when reviewing its suppliers. This is
communicated in its supplier agreements.

• Feragaia only chooses suppliers who align with their commitment to ethical standards, sustainability
practices, and quality requirements. Therefore, suppliers have low bargaining power as they have to
align with all of feragaia’s standards.

• However supplier still may have some power due to the specialized nature of botanical sourcing.
 3. Bargaining Power of Buyers (Moderate)
Since Feragaia’s and many non-
The limited range of alcoholic spirit products are
non-alcoholic spirits mostly sold through premium
in retail stores reduces retail stores, these stores may be
bargaining power. considered as exclusive and
therefore, customers who want
to buy such products, would be
less price sensitive and willing
to pay more for premium quality.
This also reduces the bargaining
power of buyers.
As consumers However, consumers
increasingly prioritize have diverse preferences Changes in consumer
healthier choices, the which means that buyers preferences could
demand for non- may not uniformly impact buyer power.
alcoholic beverages pressure brands. Instead,
has increased. This different segments of
buyers may prioritize
demand provides
different attributes,
buyers with influence
leading to a balanced
over product offerings
bargaining dynamic
and pricing.
overall.
 4. Threat of Substitutes (moderate)

• There are increasingly many non-alcoholic spirit brands in

the market now and there are many available substitutes
for non-alcoholic spirits so the threat is quite high.

• However, consumers seeking non-alcoholic spirits may be

less inclined to switch to other options due to the
exclusivity and perceived quality associated with premium
brands like Feragaia, Seedlip and Lyre’s. They also come
with health-related benefits because of the unique
botanical ingredients and infusions.

• Non-alcoholic mixers and spirits often offer unique flavors (Double Dutch has flavors like Indian tonic water,
pomegranate and basil etc.) and branding (Sustainable packaging, botanical ingredients) that differentiate them
from traditional soft drinks or homemade mocktails. Therefore, the threat of substitutes is decreased.
 Competitive Rivalry (Moderate)

• The recent influx of new competitors like Seedlip, Lyre’s,

Spiritless, and others, indicate a growing interest in the sector
and contributes to a moderately intense level of competitive
rivalry.

• Non-alcoholic beverages such as sodas, non-alcoholic beer, and

wine can be considered indirect competitors. While they offer
different taste experiences compared to non-alcoholic spirits,
they still compete in the broader non-alcoholic category.

• Feragaia can set itself apart from these competitors by

emphasizing its distinct flavor profile, premium positioning, and
sustainable packaging. By positioning itself as a premium
choice for special occasions and highlighting its compatibility
with cocktails and food, Feragaia stands out.

S W
STRENGTHS
• USP: alcohol-free distilled
spirit derived from sea and
land botanicals.
• Sustainable: Bottles are 65-
75% recycled glass. The cap
is composed of 70%
bioplastic.
• Unique flavours: Wild
Ginger, Paloma, Sour, Tonic,
and Ginger Ale.
SWOT Analysis
O T
WEAKNESSES O P P O RT U N I T I E S T H R E AT S
• Intense competition from established
• Limited Product Range
• Market expansion, and emerging brands in the non-
• High Production Costs that
mainly the islamic alcoholic beverage sector.
comes with sourcing
market. Offering halal- • Fluctuations in economic conditions,
botanicals, rare ingredients
certified non-alcoholic including changes in consumer
and sustainable packaging.
options to the muslim spending patterns and currency
• Premium positioning may
community and non- fluctuations.
limit accessibility and
muslims that seek • Strict regulatory requirements and
reach in price-sensitive
healthier drinks. compliance standards may present
markets.
• Expand Product Line legal challenges.
• Shorter shelf-life
• E-commerce growth • shifts in customer tastes, demography,
compared to alcoholic
and lifestyle patterns
beverages, posing
inventory challenges.
 Differentiation through: Differentiation through strong CSR initiatives:
• Alcohol-Free Distillation Process • Feragaia's frontline driver campaign is focused on
• Sustainable sourcing, production and supporting key workers in the local area
packaging: From reducing carbon emissions • Companywide recycling policy and adhere to local
and minimizing waste to supporting recycling regulations.
charitable organizations like McMillan • Investment in seaweed lines that grow botanicals and
Cancer Support, GreenSea Solutions,
educate people to help reverse climate change.
Protect Our Winters, NC500 and
• work from home policy to encourage all employees to
Seawilding.
•
apply environmentally conscious decisions in the
Use of diverse land and sea botanicals.
• Healthy- Zero-sugar, Gluten-free and Vegan virtual office.
Competitive
Stance

• Feragaia achieves brand loyalty Customer-centric approach

through attention to branding, and engagement by
marketing, and customer encouraging public
engagement.
feedback on platforms like
• For example, Feragaia
Trustpilot
leverages its Scottish heritage,
tells compelling stories about
its origins and production
process to establish an
emotional connection with
consumers
 STRATEGIC GROUP MAP
• Product line: This axis represents the range
and diversity of products offered by each
brand, from non-alcoholic spirits and beers
to sodas and other non-alcoholic
beverages.

• Price Positioning: This axis reflects the

pricing strategy adopted by each brand,
ranging from budget-friendly options to
premium offerings.

• There is a gap for premium brands offering

a high range of products. This gap
represents an opportunity for Feragaia.
• By offering a comprehensive portfolio of
premium non-alcoholic beverages, Feragaia
can attract consumers seeking quality and
attract diverse tastes and preferences.
PESTEL Analysis for Feragaia to enter the UAE Market

Political Factors
• UAE government encourages foreign investment.

• e.g.: Dubai FDI supports foreign businesses by offering guidance on

legal structures, investment opportunities, and connects investors with
government and private contacts.

• UAE political landscape is stable.

• Feragaia, as a non-alcoholic beverage, may face fewer regulatory

hurdles compared to the strict import regulations for alcohol related
products in the UAE. For example, alcoholic products are subject to a
50-percent import duty in the UAE.
Economic Factors

• Strong financial sector boasting AED 438.6

billion in bank reserves.
• Per capita household disposable income in the
UAE is expected to reach US$7.73k in 2024
allowing Feragaia’s premium products to
target affluent customers in the UAE.
• UAE’s non-oil sector contributed 72.3% to
GDP in 2021, presenting a favorable
environment for investment and growth.
 SOCIAL FACTORS
• UAE has a predominantly Muslim population with strict adherence to
Islamic principles, including dietary prohibitions of alcohol and
pork.Feragaia's alcohol-free beverages align well with these cultural
norms.

• UAE's health initiatives, like the National Policy for Promoting

Healthy Lifestyles and the National Nutrition Strategy 2030, aim to
improve food systems, provide nutrition education, and create safe
spaces for healthy eating.

• As a provider of alcohol-free spirits crafted from natural botanicals,

Feragaia promotes healthier beverage choices that resonate with the
UAE's focus on encouraging healthy lifestyles.
 Technological Factors

With 40% of the UAE population using government digital

services frequently and smartphone usage at 100%, there is
a ready market for Feragaia's products through online
channels.

By obtaining the e-commerce license (Tajer Abu Dhabi) or

the DED Trader License from Dubai, Feragaia can legally
conduct its online business activities.

• UAE’s adoption of electronic invoicing systems and the transition towards a paperless government will help Feragaia adapt to UAE’s
digital ecosystem.

• The National Programme for Coders underscores the UAE's commitment to nurturing talent in digital technologies, providing Feragaia
with access to a pool of skilled professionals who can support its e-commerce initiatives.
 Environmental Factors
• The UAE aims to be a leader in 'Net Zero' status. Initiatives like the Environment Vision 2030 and Water Security Strategy 2036
show the UAE's commitment to sustainable resource access and water quality.

• The UAE is working towards global environmental sustainability through its 'Forward diplomacy' pillar of the 'We the UAE 2031'
vision. This creates a supportive environment for Feragaia's green innovation and zero-emission efforts.

• Feragaia can benefit from UAE investments in desalination technologies and renewable energy to address water scarcity sustainably.
 Legal Factors
• To export products to UAE, Feragaia must register with the
Dubai Municipality's e-Government system and the Food Import
and Re-export System.

• All pre-packaged products being imported must have an arabic

label and production and expiration dates. Feragaia is required to
source food and materials from regulated sources at the country
of origin, ensuring they are produced under sanitary conditions.

• All imported food products and food contact materials undergo

inspection by the Food Control Department at the port of entry.

• For high-risk or perishable foods, shelf-life validation and

approval from the Food Control Department are required.
Feragaia must consider various factors, including supplier
controls, microbiological testing, and industry standards, in
determining shelf-life.
 Company Assessment and Strategic Options

Product Development Strategies:

Saffron rose elixir Date and cardamom mixer

To penetrate the
Islamic market
effectively, Feragaia
Saffron citrus refresher Tropical oasis blend
could use a
combination of market
development and
product development
tactics.
Market Development Strategies (UAE Context) :

• 1. Feragaia can 2. Feragaia can supply it’s products to airport stores • 3. Feragaia can strategically partner with a
strategically partner with like Dubai Duty Free and even offer its products in- diverse range of restaurants and bars, both
retail and online stores in flight by establishing a supplier agreement with halal-certified and non-certified.
the UAE (Union Coop, Emirates. • By partnering with renowned cocktail bars,
Noon, Waitrose, Feragaia can leverage their expertise in
Spinney’s) mixology to create innovative and visually
appealing mocktail recipes using Feragaia's
spirits.
 Strategy Recommendations cont.
• 4. Feragaia could strategically partner with Bateel Premium Dates, a
renowned date producer in the UAE, to offer a unique Feragaia drink and
dates bundle pack, especially during significant occasions like Ramadan
and Eid.

• Partnering with Bateel, allows Feragaia to align with the rich cultural
traditions of the UAE, particularly during Ramadan and Eid, when there
is a surge in demand for premium food and beverage products as families
come together for special meals and gatherings.

• Bateel also aligns with Feragaia’s commitment to sustainability:

• The collaboration enables Feragaia to tap into Bateel's established customer base
and distribution networks across the UAE

• Feragaia can also supply its drinks in ‘Cafe Bateel’ owned by Bateel in UAE.
Strategy Recommendations cont.
• 5. Creating a separate social media presence specifically for the
UAE market, such as a dedicated UAE Feragaia account, can be a
strategic move to tailor content and engage with Muslim viewers
effectively.

• Feragaia can use the UAE account to launch specific campaigns

and promotions during Ramadan and Eid, showcasing how its
products can be incorporated into traditional festivities and Iftar
gatherings. Content could include recipe ideas for mocktails, gift
bundles featuring Feragaia drinks and premium dates, and
messages of unity and celebration.

• Feragaia can collaborate with Muslim influencers and content

creators based in the UAE to promote its products authentically.
These influencers can share their experiences with Feragaia
drinks, create engaging content around mocktail recipes, and
showcase Feragaia's presence at local events and venues.
 Feragaia's competitive stance on having an alcohol-free

01. distillation aligns with the Islamic prohibition of alcohol

consumption making them readily accessible to Muslim
consumers.
Why the
competitive stance Feragaia's premium branding also aligns with the consumer spending power of
should remain the predominantly affluent local Arabs. This demographic group often possess

unchanged 02. substantial disposable income, stemming from various sources such as oil
wealth, profitable business ventures, and investments. As a result, they are
willing to invest in high-quality offerings.

Therefore, the competitive stance would not need any modification or changing

03.
as it perfectly aligns with the UAE’s culture and taste preferences of the target
customers.
Reference List