The History of Nantucket Nectar Started

Tom Scott and Tom First met while students at Brown University

They created Allserve, a floating convenience store serving boat in the Nantucket Harbour

Sold ice, beer, soda, cigarettes and newspaper

Pumping waste, Delivering groceries & laundry

1990 - First recreated a peach fruit juice drink.

In spring 1990, the founder decided to hand bottle their new creation and sell them off their

Allserve boat.

In the first two years, they invested $17,000 in the company to contract and outside bottler and finance inventory.

Next two year, Nantucket Nectar operated in an undercapitalized state on a small bank loan.

Two founders and Ned Desmond persuaded Mike Egan to invest $600,000 in Nantucket Nectar in exchange for 50% of the

company.

The founder use capital to improve distribution and increased inventory.

To speed the growth, the founders obtain the exclusive right to distribute Arizona Iced Tea in Massachusetts.

Distribute the product themselves

Then the founders decided to focus on a simple vision without the help of any outside agencies: create a high quality product sell a persona.

The creation of a unique brand personality based on the start of this company on Nantucket.

Nantucket Nectars focused on creative but mundane ways of creating name recognition at a minimal cost.

The company set up samplings, giveaways, sponsorship for road races and summer sports leagues which usually required only donation of product.

The founders described early mishaps in radio and place messages underneath their

bottle caps in order to attract consumer.

Historical Financial of Nantucket Nectar

December 31 of each year 1991 1992 1993 1994 1995 1996

Total Revenue $233 $379 $978 $8,345 $15,335 $29,493

Cost of Sales 172 317 765 6,831 11024 20511

Gross Profit 61 62 213 1,514 4,311 8,982

Marketing & Advertising 0 0 0 320 875 2,581General & Administration 82 62 90 3,290 3,344 5,432

Total Expenses 82 62 90 3,610 4,219 8,013

EBITDA -21 0 123 -2,096 91 969Amortization & Depreciation 0 4 0 104 137 247

EBIT -21 -4 123 -2,199 -45 722

Interenst Expenses 0 5 7 53 139 301

Earning Before Taxes -21 -9 116 -2,252 -184 421Income Tax Expense 0 0 0 0 16 52Net Income (Loss) -21 -9 116 -2,252 -200 369