Case Study Of Absolut Vodka

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Absolut Vodka Case Study Early History: Successful businessman at 10 and entrepreneur at 14, Lars Olsson Smith controlled one third of all the vodka in Sweden while he was still learning to shave. For almost half of the 19th century he was known as "The King of Vodka". In 1879, he introduced a new kind of vodka called "Absolut Rent Bränvin" (Absolute Pure Vodka) produced using a revolutionary new distillation method. The method was called rectification, a method we still use today. Not only did Smith create a purer and better-tasting vodka, he also started a trade war against the city of Stockholm. Smith was an entrepreneur in every sense of the word and didn't take kindly to the city monopoly on distilled spirits. He refused to apply for a permit to sell his product in Stockholm and instead opened a vodka store next to his distillery on the island of Reimersholme, just outside the city limits. He sold his vodka by offering a free shuttle boat to the island - an incredible marketing initiative for the period! Towards the end of the century, Smith started to export his spirits with great success, making him one of the richest men in the country, a fortune he would lose, regain and lose again. When he died in 1913, he was penniless, leaving behind him nothing but debts, angry letters and lawsuits. His face is on the medallion of every bottle. Åhus Distillery built in 1906, V&S Group formed in 1917 - Lars Olsson Smith, controlled 1/3 of Vodka market in Sweden when he was 14. - Area has 400 year-old tradition for making Vodka - Invented rectification for his "Absolut Rent Bränvin" in 1879, a purifying distillation method still in use today - Started a war against the alcohol distribution monopoly in Stockholm by building his vodka store just outside city limits on an island and ferrying people to it for free - His business made him one of the richest men
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