Wednesday, September 05, 2007

Just add water...

This is from a couple months ago. Some Dutch students have developed powdered alcohol, which was part of their final-year school project.

What a surprise, eh.

They plan to price the powder, called Booz2Go, quite aggressively. It is said that a packet would cost $1.35 to $2. Assuming each packet can make a 24 oz. (~720 ml) drink, its equivalent alcopops, Smirnoff Ice for example, also cost about the same - around $2.20. If, however, a packet can only make 12 oz. drink, popular alcopops would be relatively cheaper at $7.99 for six-pack.

Since Booz2Go is likely to be exempted from tax, this looks like a quite profitable business.

So it's clear that Booz2Go has a niche market that will pay the premium. Like those who can't buy alcoholic drinks.

Like kids under the legal age of drinking.

"Because the alcohol is not in liquid form, we can sell it to people below 16," said project member Martyn van Nierop.

Poor youngsters - early exposure to alcohol.

Anyway, assuming this product will take off, what else can we expect the demand to increase? The complement goods - water. Or perhaps soon grape and orange juice...