BOS Brands: challenges

of internationalisation
Christopher James Human and Geoff Bick

Christopher James Human [. . .] from: Rick Greene ⬍richard.greene@.com⬎

is Professor of Marketing,
and Geoff Bick is [. . .] to: Dave ⬍dave@bosbrands.com⬎
Professor of Marketing
and Academic Director, [. . .] date: Wed, November 22, 2015 at 10:13 p.m.
both at the Graduate
School of Business, [. . .] subject: Listing Opportunity
University of Cape Town,
Cape Town, South Africa. Hi Dave – Anne and I finally had the chance to meet yesterday afternoon, crossing paths at
O’Hare for all of 45 minutes. We are excited by the prospect of getting BOS on our shelves in
time for summer 2016, and I think we could push for a nationwide rollout. Your product is fresh,
and it’s doing well in Europe, which is a good indicator for our developed market. Simon M and
his category team would need to head across to South Africa and to your bottling partners in
Europe with one of our planners, take a look at your operations and conduct a capacity audit
and - of course - we still need to run projections. But we expect to be able to move volumes
somewhere around 4 million units in the first year, based on a 5-year exclusivity agreement
(which is standard for all our new foreign listings). Last time we spoke, you stated that you were
hesitant to take your eye off the ball in SA and Europe, but I would suggest coming across to
discuss. I think we have the market and reach to build a compelling case for BOS’s entry into
the USA. I can also set up some meetings with contract bottlers and a few of our packaging
guys stateside. Let’s talk. Regards, Rick

1. Introduction
Resting on the marble counter in the Slow Lounge, in the International Departures Terminal
of Johannesburg’s OR Tambo Airport, Dave’s inbox stares back at him. As always, it offers
fewer answers than questions. BOS Brand’s youthful Chief Executive Officer (CEO) is no
stranger to tough decisions, but he has never grown accustomed to turning down
game-changers like this. He had first met Rick by chance, at a low-key year-end function
hosted by the Swiss company that had helped develop the flavours for BOS’s new natural
The authors thank Dave
Evans, CEO of BOS Brands, energy drink. The USA is not on BOS’s radar just yet, but this is a major opportunity with one
and his management team for of the world’s most powerful retailers. It is also in the planet’s largest ice-tea market –
the information and insights
into the company. consuming close to 7 billion litres[1] of ice tea a year and expanding at close to 5 per cent
a year (compound annual growth rate in value)[2].
Disclaimer. This case is written
solely for educational
purposes and is not intended
Since joining the founding team of South Africa’s fastest growing soft drink company in
to represent successful or February 2011, Dave has watched BOS’s share of its home ice tea market grow from under
unsuccessful managerial
decision-making. The authors
1 per cent to close to 15 per cent. With this growth has come renewed global interest in their
may have disguised names; unique Rooibos-based product lines, which now include energy and sports drinks.
financial and other
recognisable information to
Perhaps, he would need to get used to the fear of missing out, but he also could not help
protect confidentiality. wondering if now was the wrong time to be conservative. Does it make sense to stick to the

DOI 10.1108/EEMCS-05-2016-0061 VOL. 6 NO. 4 2016, pp. 1-32, © Emerald Group Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1
 internationalisation path BOS has been following and continue with their metered,
brand-first approach? Or is it time to chart a new more aggressive internationalisation path,
in light of the magnitude of the leads they were starting to receive?
At just US$$1bn[3], Benelux (where BOS’s internationalisation journey had begun) is a
relative drop in the ocean of global markets, totalling US$70bn[4]. Yet, the networks and
relationships his team have built there alone have taken a huge amount of effort, time and
attention. With more in the pipeline in Europe, they would be stretched thin as it is. Then
again, perhaps the next market entry would be easier and quicker. They had more
experience on their side now and stronger brand recognition abroad. But, would they have
the knowledge and financial backing to truly succeed? Or would BOS just get swallowed
up in a market as massive and far afield as the States. Would their trademark and irreverent
guerrilla marketing techniques work in a context so different from home? As he glanced up
at the departures screen, the questions continued to flow. He would need to talk all this
through with the rest of the team soon.

2. Background
2.1 The ice tea market
Dave saw massive potential in the ice tea market, which continued to steal market share
from more sugary carbonated drinks in Europe, the USA and further abroad. Industry
intelligence from respected FMCG market research firm Canadean indicated that “the
refreshing taste and natural, healthy image of iced tea drinks (with naturally high antioxidant
content) would continue to drive growth and place the category in a good position to take
advantage of the slowing carbonates market. RTD (ready to drink)” tea is forecast to grow
8 per cent per year and contribute to 20 per cent of global growth in the soft drink market
in the five years to 2018[5] and statistics cited in the most recent forecasts cited by BOS’s
Marketing Director, Marié, point in the same direction:
 Ice Tea represents close to 9 per cent of the global soft drinks market by value and
volume and is one of the fastest growing categories.
 Ice tea has grown twice as fast as the market over the past five years and is expected
to grow by 45 per cent over the next five years.
 RTD tea’s fast growth is driven by a strong and long-lasting consumer trend towards
healthier options that also offer great taste.

2.2 The BOS team

Dave first encountered BOS as a customer, stocking the 275 mL cans across his chain of
artisanal bakeries. Shortly after being introduced to other founders, however, he decided to
invest in the business directly, coming on board as CEO in 2011. His interest was fuelled
in part by the market opportunity and by his belief in the product and brand. But, he had
also formed a strong bond with BOS’s people. Grant Rushmere, Richard Bowsher and
Dave worked together closely from very early on. As Chief Brand Officer, Grant led the
development of BOS’s all-important brand and was, in many ways, the visionary behind
BOS’s unique positioning. Grant was outgoing and adventurous and was a well-known
personality around Cape Town and beyond. Richard was a successful Silicon Valley
entrepreneur who brought a wealth of entrepreneurial experience (and access to his
organic rooibos farm) to the table. They were joined by BOS’s energised Marketing
Director, Marié van Niekerk, who has subsequently launched the brand in Western Europe
with great success and just one permanent staff member. Marie was well-connected in the
art, design, music and natural sports circles and shared Grant’s deep passion and
understanding for the BOS brand. The team was subsequently joined by Allison Collier,
BOS’s to-the-point International Business Development Director, who is also an active
decision maker in the brand’s internationalisation endeavours. Back home, William
Battersby, the pragmatic Managing Director of BOS’s Southern African operations, keeps

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

the brand on its growth trajectory and mirrors Dave’s sharp business acumen and
appreciation for out-the-box thinking.
Although they spent much of their time apart and travelling, together, the team were a force
to be reckoned with. Their ability to build strong relationships and networks in South Africa
and further afield was a major contributing factor to BOS’s success. The Head of Trading
for the Beverages Category at Woolworths (an upmarket South African retail brand)
recently recalled a casual conversation that the BOS team had struck up with a Woolworths
Director at Cape Town’s Design Indaba[6] four short years ago. This friendly chat ultimately
led to BOS’s listing in most of the prestigious retailer’s 149 stores. Dave knew that any
successful evolution of BOS’s internationalisation strategy would require the strategic input
of these key team members and BOS’s investors, which included Sir Alex Ferguson and
South African venture capital firm, Invenfin[7] (Plate 1).

3. The BOS Brand

3.1 Positioning: healthy and fun
BOS’s tight-knit team and entrepreneurial spirit are evident in the brand’s personable and
pioneering approach, the way its products are packaged and marketed and the brand as
a whole. Dave sits back for a moment to consider the brand’s essence – an unexpected
combination of health and fun. The brand and product had been born out of two basic
insights. First, the health food and organic products markets in 2010 were niche, somber
and generally took themselves too seriously. As Grant put it, they were characterised by the
“Birkenstock brigade”[8]. Second, the shallow commercialism that typified the mass market
consumer of the 1990s and 2000s was giving way to a deeper level of sophistication and
appreciation for intrinsics.
BOS’s vision from the beginning was to bring consumers a healthier beverage alternative
that is also lighthearted and suitable for the mass market. The organic Rooibos[9] is farmed
exclusively at Klipopmekaar (Richard’s farm in the picturesque Cederberg) and is high in
natural anti-oxidants. The formulations are lower in sugar than other competing products

Plate 1 BOS’s founding team includes Dave Evans, Grant Rushmere, Richard
Bowsher and Marié van Niekerk

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

 such as ice teas and soft drinks. BOS’s growing product line is also made with all natural
fruit flavours and is preservative and colourant-free. Instead of appealing to its natural
credentials, they intentionally hide them on the back of the can (and on the brand’s website
and social media presence). So, although they are easy for customers to discover, BOS’s
packaging remains clean, iconic and fun. It also gives the brand a casual feel. Grant always
likened the brand to the kind of person who cares about integrity, health and the
environment but does not announce it to everyone she meets. BOS is more laid back, and
so the brand’s marketing focuses on the brand’s fun factor and tongue-in-cheek humour
instead (Figure 1).
The result is an approachable brand with good looks and plenty of soul. Multifaceted, it
offers many different attributes for consumers to engage with as they get to know the brand
and product. Grant’s opening to the company’s original investment deck touched on just a
few of these. In it, he states: “BOS offers a compelling and interesting proposition of style,
celebrated premium design, great taste and health. Each of these factors are underpinned
by compelling product intrinsics (organic Rooibos, no caffeine, no colourants, no
preservatives, low in sugar[10]). All packed together in an authentic and lighthearted brand
that is fun to engage with – global but with African roots”.

3.2 A brand-led business

A brief announcement comes over the lounge PA system: the scheduled 11.59 p.m. KLM
departure has been pushed out by 30 min because of a delay in the incoming flight. Just
an hour behind Johannesburg, Amsterdam was experiencing winter snow storms – a far cry
from the Johannesburg heatwave. Dave orders a vodka-BOS (they have recently started
supplying the Lounges in Johannesburg and Cape Town) and settles into an armchair with
a view of the departures status screen and the tarmac beyond. He reads over the budget
slide for his presentation at their upcoming Klipopmekaar strategy retreat in December.
Perhaps, unsurprisingly, the very first bullet point covers brand-building spend in their new
markets.
3.2.1 Explore cost-effective ways to build brand equity in new European markets. Additional
€1.2m plan was to ensure that BOS’s attributes are properly established and understood
among primary audiences in France and Spain in the next three years.
Dave knows that the most effective brands are based on a combination of share-of-shelf
and share-of-mind (the power to influence consumer perceptions on the ground).
Regarding the former, Alison and her team have invested heavily in BOS’s distribution
partnerships and channels, carefully monitoring, supporting and working with distributors
who understand the brand and market and work with the right retailers.
As BOS achieves a foothold in critical distribution and retail channels, there is work to be
done to ensure that the gains made in brand awareness and perception keeps pace. This

Figure 1 BOS’s current ice tea range in standard 275 mL tall format cans

PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

is especially important in developed markets such as Europe, where there can be upwards
of 60 RTD tea brands to contend with. For BOS, their commitment to building a
brand-oriented business plays out in some critical decisions, financial and otherwise. For
one thing, this means investing time and money to ensure that first encounters with the
brand take place in the right contexts. The brand’s three marketing platforms are natural
sports (such as surfing and cycling)[11], art and design and niche music experiences.
It has also meant a commitment to always launch the brand into the HORECA (hotel,
restaurant and café) trade well in advance of hitting supermarket shelves. By utilising
carefully selected outlets to reach the right crowd first, BOS builds positive associations
with the brand in a high-touch and brand-appropriate setting. These environments allow
BOS to be introduced to consumers in a personable and knowledgeable way rather than
anonymously with just a price tag to do the talking. Marié is certainly right when she says
“BOS’s brand personality is its strongest asset”, but it is challenging to convey BOS’s
multi-faceted brand to somebody encountering the product for the first time on the shelf of
a local supermarket.

4. Internationalisation
4.1 Born to be global
The fact that BOS, a South African FMCG start-up, is present in five European countries and
already moving significant volumes abroad has little to do with luck. BOS’s business model
and brand were designed for internationalisation. This puts BOS in a growing club of “Born
Global” firms – businesses that are created with the intention of internationalising within
three years of commencing operations. In BOS’s case, this was based on the conflation of
three factors:

1. First, the premium soft drink market in South Africa is limited and, although ice tea’s
share is increasing, current consumption remains at around 1 L per person per
year[12] (compared to an average of 6 L in Europe and 18 L in the USA)[13]. South
Africa could not provide the scale required to meet BOS’s revenue target of US$100m
by 2020.
2. Second, the personalities and experience of BOS’s founders and their broader team
and their ambitious mindsets and global exposure (cumulatively working in Africa,
Asia, Europe, North and South America and Australia) resulted in hunger for global
success and the network and knowledge to recognise and develop opportunities
abroad.
3. Finally, not to be discounted, the appeal of their Rooibos-based product and fun,
healthy brand is aligned with global trends and tested positively with consumers in key
markets.

4.2 Target region/country

One key question for the BOS team was where they should begin, in terms of target region.
On the cards initially was expansion northwards into the rest of Africa (ROA) and options
further afield in the USA, Europe, Japan or China – all selected on the basis of the volume
and margin opportunities these regions could offer. Although the ROA is broadly
characterised by fast-growing economies and a burgeoning consumer class, the team had
decided against this, as the ice tea market (and related product knowledge) there remains
limited and cultural and legal barriers can make business difficult in many countries.
Similarly, the ice tea consumption is relatively low in China, and the team’s decision in that
market was to wait for larger players to invest billions required to establish the category
there first before introducing the BOS Brand. Other markets were not deemed appropriate
for the brand’s early stage expansion, because of the significant cultural and language
barriers and the team’s lack of networks and relationships in that part of the world. As a

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5

 result, Western Europe and the USA became the two primary contenders for initial
internationalisation (Figure 2).
Western Europe was eventually selected for four reasons:

1. It was possible to launch the brand in smaller countries first and so contain the risk of
both failure and success; it was easier to tackle Europe on a piecemeal basis, as the
region’s markets are more compartmentalised.
2. The cultural and language similarity between The Netherlands and Belgium, in
particular, provided fertile ground to begin the internationalisation process in an
environment with low communications and cultural barriers and growth opportunities.
3. The team was more connected in Europe than they were in the USA, based on BOS’s
existing network of partners, including suppliers (including packaging and natural
flavourings), investors and other business contacts.
4. It would be easier to do business with Europe, because of proximity, making supply
chain extensions and travel less complicated (many cities in Europe are accessible via
direct flight from Cape Town or Johannesburg).

4.3 Entry mode

Another critical decision for Dave’s team had to do with entry mode. Once tea syrups have
been formulated and shipped, the manufacturing process typical of soft drinks such as
iced tea (just add water) is relatively straightforward. The result is a high degree of
operational flexibility regarding supply chain and business models. BOS faced (and still
faces) a variety of entry mode options as it enters new markets as long as the formula is
protected, quality standards are maintained and the brand is built in a consistent way. They
can export the packaged product (at least to begin with) and sell it through distributors
abroad. This option offers the least risk and highest flexibility but the lowest degree of
control concerning their all-important brand. Alternatively, it was possible to raise more
capital and set up foreign subsidiaries in each country/region. Investing in their own
distribution and marketing infrastructure and teams would have given the business more
control, but at a significant cost and a higher level of risk. Once the brand was entrenched
and demand was established, they could even licence their formula and brand to
third-party manufacturers and marketers.

Figure 2 BOS’s global presence – 2015

PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

In the end, BOS opted to internationalise by using a hybrid entry mode approach,
manufacturing different packaging formats in various locations (wherever this proved most
profitable) and selling the product to wholly owned subsidiaries and distribution joint
ventures in different countries and territories. These entities handle their own profit and
losses (P&Ls) and oversee the distribution and marketing to a varying extent depending on
BOS role in each case.

5. BOS in Europe
5.1 Internationalisation stages and timeline
Having made their initial strategic decisions in respect of the target region and entry mode,
it was time for action. BOS launched into Europe in 2013 and is now present in six countries
in the continent. Dave considers the timeline to date. After South Africa and neighbouring
countries, the internationalisation journey began with the establishment of the brand in
HORECA trade in Belgium and shortly after that, in The Netherlands. As BOS became
better known and recognised in these two launch markets, demand in nearby countries
began to grow. Based on the new hybrid distributor-partnership model that was
developing, BOS was then launched into key cities in Sweden and Switzerland. After about
18 months, distribution in The Netherlands and Belgium was opened up to include retail
outlets. In The Netherlands, this point came by invitation from Albert Heijn (AH)[14] – one
of The Netherlands’ largest supermarket chains with 878 stores located across the country.
Because of high levels of awareness and demand from the public as a result of Marié’s
grassroots marketing efforts in the Dutch art, design and music scenes, the BOS team felt
the brand was known and understood enough to launch into AH (Figure 3).
Looking at the timeline, it was apparent to Dave that BOS’s internationalisation was gaining
momentum – an exciting but daunting prospect. Even though their recipe for foreign market
entry was becoming increasingly efficient, they faced new challenges in Spain and France.
For one thing, the sheer size of both required a more compartmentalised approach and a
nuanced understanding of the various city profiles and cultures (with their limited staff on
the ground, they had to rely heavily on their distribution partners). As he took his last sip of
BOS, he wondered if it was time to evolve their distribution and marketing model or if their
current structure and hands-on brand-centric approach could withstand the acceleration.

5.2 Competitive environment

In particular, Dave thought of the complexities of the competitive environments they faced
in Europe. There were two major incumbents in the ice tea market there, Lipton and Nestea.
There was also a number of other more niche, local competitors to contend with, such as
Estathé in Italy and Pfanner in Austria. Of course, there were all the indirect competitors:
soft drinks, energy drinks, sports drinks and mineral water. On a simple grid, Marié had
mapped BOS’s core positioning relative to well-established competing offerings in the EU
in terms of its two core attributes: natural and fun. BOS occupied a definite gap in the

Figure 3 BOS’s Internationalisation in Europe 2010-2016

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7

 market and, to compete effectively, they needed to protect this space. Grant had summed
it up best: “BOS hits the sweet spot, filling the gap in the beverage market, offering
consumers a strong emotional brand and a natural, healthy product”. Not only do
consumers face a vast array of ice tea and natural soft options in these markets but also
competitors are better established and more aggressive than they are in South Africa.
Specifically, both Lipton (owned by Unilever) and Nestea are very active. As BOS works to
build their brand, they continue to encounter fierce and often direct competitive responses.
Entering their home markets (Nestle is headquartered in Vevey, Switzerland) was
especially daunting. In fact, this was another key reason Alison had favoured the
HORECA-first approach, “flying under the radar” initially while building awareness and
demand. Not one to shy away from a challenge, Dave had wanted to take the bigger market
players on more directly (and potentially benefit from the David and Goliath PR play-off),
but Alison’s caution was well advised. Thus far, with support from their distribution partners
and legal partners, BOS had managed to weather the backlash, but Dave was well aware
that there would be more to come. Already, he had heard that Lipton was developing an ice
Rooibos for the South African market[15], and he had a feeling this was just a trial market
for a more ambitious roll-out (Figure 4).

5.3 Distribution and sales

In this environment, the only way to win in the growing ice tea market is to keep a level head
and stay focused on the things that matter most – obvious as they often are. For Dave, that
meant balancing time and money spent on driving availability (more push) and awareness
(more pull). Marié and her team worked hard within tight budgets to seed the product within
the right circles and win over the hearts and minds of the target audiences. The other

Figure 4 BOS competitive positioning matrix

PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

component of the mix was ensuring the right distribution and that sales channels were
being accessed and utilised. In addition to focusing on HORECA trade first (a rule that
Alison had applied across the board to date), picking the right partners had proved crucial
to BOS’s success in Europe to date.
In BOS’s home market, the team had actively sought to connect directly, first with HORECA
outlets and later with major supermarket chains such as Woolworths. Although third parties
often handled logistics, retail relationships themselves were driven and managed by Will,
Alison and the South African team. This required significant resources, but it was relatively
straightforward and had served BOS well as these retailers had supported the local start-up
largely as a result of the personal relationships they had built. The European markets
represented a more complex environment, however, as the team was less familiar with the
key retailers and individual decision makers there. Based on their lower commitment entry
model, BOS did not have the manpower on the ground in Europe to pursue and build the
required relationships from scratch, especially not in the diversified HORECA trade. As a
result, they had opted to bring distribution partners on board. Dave recalled that the best
way to select the right partners and arrive at a mutually beneficial service level agreement
was not always apparent.
As a result, since first introducing their products in the European markets, BOS had
experimented with different distribution models and relationships. The business in Belgium
was structured differently from its Dutch counterpart (this was both as a consequence of
the BOS team’s supplier relationships and because, in part, of a strategic requirement to
test different distribution arrangements). In the case of the former, local distribution and
marketing services company, Jet Import[16] handles distribution and marketing with more
autonomy – as a turnkey solution to the BOS business in Belgium. In The Netherlands, the
chosen distribution partner fulfils more of a strategic logistical function with marketing
headed by Marié (who Dave will be meeting with in person after his 10-h flight). As the two
models roll out, Alison works to optimize both with more changes made to the Belgian
model (in which Marié’s Amsterdam team began taking on a more active role in guiding and
supporting marketing efforts). This was done to reinforce the brand positioning and ensure
that the right audiences were engaged. One important point of commonality between the
two approaches was the culture and degree of brand synergy with the partner. Once again,
BOS applied its brand-first approach to select partners that had the same energetic can-do
approach and that all-important sense of humour.

6. Building an effective challenger brand

6.1 High-touch networks
The display monitors above turn green – Dave’s flight will be boarding shortly. As he packs
his laptop into his leather backpack, his mobile phone rings. It is Marié calling from
Amsterdam, where it is the same time: 12.15 a.m. The Venice Biennale has just wrapped –
a six-month international art exhibition that attracts a global A-list of hip creatives and over
300,000 members of the public, all of whom descend on Venice to immerse themselves in
fine art, theatre, music and architecture. This year, BOS was everywhere – the soft drink of
choice at the event. Marié is excited by the buzz and PR potential. Her enthusiasm is
infectious, even at this time of night. With the amount of exposure BOS has had with
influencers visiting from other large cities across Europe, she wants to put together a
strategy to increase the brand’s presence in the HORECA trade in key design cities and
focus the next two months on their art and design territory. Key contacts from BOS’s
distribution partners in Spain and France were both at the wrap party and seemed to be
on-board. She knew that they would be meeting shortly but wanted Dave to give it some
thought – specifically for Paris, Barcelona and Madrid. Dave knows that she will also want
to discuss investing more in the HORECA trade in The Netherlands to support the brand’s
entry into retail through AH. The idea that customers and potential influencers may

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9

 encounter the product for the first time on a supermarket shelf has concerned Marié for
some time.
Like so much of BOS’s good fortune to date, featuring at the Biennale was a function of the
network of close and authentic relationships Dave and his team had built. The mere fact
that senior directors from their distribution partners in Spain and France had both joined
Marié for the final party in Venice was testament to this. Of course, BOS represented plenty
of potential revenue for them, but Dave also believed that there was a degree of genuine
affinity for the business. Just as Will had noted back in Cape Town, people wanted BOS to
succeed. Marisa at Woolworths certainly concurred. It sounded un-business-like in some
respects, but in Dave’s mind, that sense of good will was one of the greatest rewards that
came with the past five years’ hard work. It was the result of time and energy invested by
BOS into the people around the business – suppliers, distributors and beyond. BOS’s
presence at the Biennale, alongside Grolsch and a select number of boutique champagnes
and spirits, was a case in point – a result of Marié’s relationship building in the local art
scene.
Indeed, it could be traced back to BOS’s appearance at the opening of a small
store-in-store by Moooi (a well-respected commercial Dutch design collective) in South
Africa two years prior. Marié had received a call from the shop’s owner, who she had
delivered samples of BOS’s new berry-flavoured ice tea when it launched in 2012. He
asked her if she would be interested in sponsoring some BOS for the launch event, and
Marié did not hesitate. Moooi’s team took a few cans back to The Netherlands, and the rest,
as they say, is history. Dave is proud of the brand’s achievements and the inroads it has
made in the design and art community and around its other two platforms of natural sport
and music. He cannot help wondering to what extent and when BOS’s growth might
necessitate them moving beyond these niche early adopter markets and into a more
mass-market space. Would BOS’s cool cache collapse if it moved too quickly into the
commercial space? Or would they be missing a critical step in their natural business
evolution if they did not? Perhaps, more importantly, could they retain their high-touch
approach to business while accessing and appealing to millions of consumers across
multiple time zones?

6.2 A fresh approach to marketing and brand building

BOS’s high-touch approach is not limited to the team’s business-to-business relations but
is extended to everyday consumers. Aside from emphasising on the HORECA trade over
faceless supermarket aisles, BOS also makes an effort to connect directly with its five target
market audiences across the business’ broader marketing and communications mix. The
strategy is different for each of the audience types, which are segmented along
psychographic and age-related lines. For example, a “Design Conscious Global Citizen”
might typically first encounter BOS at design conferences, fashion shows and art
exhibitions many times before cementing her bond with the brand on social media. A
younger “Self-Expressive Explorers”, on the other hand, may first encounter the brand on
social media and is only later be given an opportunity to sample BOS at an outdoor music
festival or similar event. No matter the market, all interactions with BOS tend to relate to the
one of its three platforms: natural sports, music and design/art (Figure 5).
Around these platforms, the marketing mix is heavily skewed to experiences such as
sampling and activations, often connected to social media. A case in point: “BEV”, a BOS
vending machine that delivers an ice tea together with a public acknowledgement to
anyone tweeting #bostweet4t on site[17]. BOS’s cycling giraffes have also become well
known for their generous hand-outs of BOS ice tea on the street of Cape Town and, more
recently, Amsterdam, Antwerp and beyond[18]. In addition to presence at music festivals,
cycle races and other fun and healthy events, BOS gets plenty of exposure from stunts like
these, which Marié always referred to collectively as “marketing moments of joy”.

PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

 Figure 5 BOS’s target audience segments

All of these activations, which together comprise the largest component of BOS’s overall
marketing budget, involve an element of sampling – putting cans in hands, so to speak.
BOS has also been quick to use digital channels in fresh and innovative ways. BOS
runner[19] is a Super Mario type game developed for iPhones and Google Play, which
rewards outstanding players with spot prizes such as delivery of a year’s worth of BOS ice
tea. BOS’s Design-a-Can site[20] is another digital platform that has generated activity and
attention by allowing creative consumers to design their own can designs with the
opportunity to see their designs rolled out on 100,000 units. Overall, BOS has initiated in the
region of 200 different marketing initiatives, campaigns and activations, in addition to
ongoing public relations efforts – all within five short years and all overseen by Marié and
her small team (Plate 2).
Marié likens marketing a Born Global firm such as BOS to gardening. Without the budget
of a big multinational company such as Unilever, you cannot afford the biggest trees (the
World Cup adverts) but you plant hundreds of seedlings. As Marié has discovered, if you
care for all of them, many of them will grow and develop as the brand matures. The
challenge for Marié is that it is difficult to say ahead of time, which of her initiatives will
ultimately bear fruit. In total, BOS diversified approach to marketing has brought with it a
number of benefits:
 Value: It achieves reach and builds awareness over time without massive
“above-the-line” spend on TV commercials and billboards.
 Affinity: It provides an opportunity to build deeper connections with consumers and
enrich their day rather than interrupt them.
 Depth: It promotes a multifaceted or “layered” brand experience that allows for
constant discovery of different brand elements. For example, BOS’s commitment to
planting and permanently maintaining a tree in an impoverished area for every 2,000
cans they sell[21].
 Flexibility: It allows for a responsive and agile brand-building, allowing the team to take
advantage of prospects wherever they arise – many of which have burgeoned into
bigger opportunities over time (such as the Venice Biennale).
Dave agrees that their current approach has brought the BOS brand significant awareness
and affinity in South Africa, The Netherlands and Belgium at cost-effective spend. But, he
is aware of the downsides too – especially as BOS enters bigger and more diverse markets.
One concern is the potential lack of focus that can result. Marié and her team are finding

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 11

 Plate 2 BOS’s famous cycling giraffes on the streets of Cape Town

their attention increasingly stretched between different countries and marketing territories.
Add to this a marketing mix with too many moving parts and the result could be inefficient
in the long term.
Second, and linked to this, Dave is not sure that the current approach will scale well as
BOS’s growth accelerates into the future. In addition, as the business achieves economies
of scale, Dave wonders if “above the line” brand-building approaches will become
relatively more affordable. He also wonders if, as the brand moves along the adoption
curve and away from early adopters, whether the same high-touch approach will be
necessary. The team will need to dig deep, creatively speaking, over the next two years to
develop the brand and offering in fresh new ways that are appropriate for a mass market
while still retaining the brand’s all-important personality.

6.3 An emphasis on creativity and innovation

On the upside, innovation is part of BOS’s modus operandi. The team’s constant quest to
keep the brand relevant and cool in the minds of consumers involves an ongoing role for
out-the-box thinking, including not just marketing but new product development (NPD) too.
In the past year alone, the BOS team has launched a sparkling ice tea variant, a popular
Rooibos and guarana energy drink and BOS’s new 500 mL BOS Sports drink format.
Certainly, as Alison was quick to point out, the speed and agility at which the BOS team can
move innovations through their pipeline puts bigger players such as Nestea to shame[22]
(Figure 6).
In many instances, the team had to innovate to survive or to eliminate inefficiencies that
larger corporate entities could throw money at instead of creativity. In other cases,
innovation is fuelled by the team’s genuine enthusiasm to push boundaries and
respond to customers on the ground. Because of their proximity to the end consumer
(especially in HORECA contexts), the BOS team has a great sense of “what will fly”. The
most recent addition to the BOS product line was BOS Sport, a range of isotonic,
organic Rooibos-based sports drinks that deliver an extended/sustainable energy

PAGE 12 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

 Figure 6 BOS sport drinks launched in January 2014

profile[23]. The range also boasts a lower glycaemic index and none of the synthetic
flavourings or colourants that have come to define the rest of the category. This
innovation was born out of BOS’s interactions with sportswomen and men, born out of
the natural (or “free”) sports marketing platform and the relatively wholesome
credentials of their ice teas, which are proving popular with an increasingly
health-conscious sporting profile.
Dave knows that BOS’s track record of successful innovation in marketing and NPD will
become increasingly important moving forward. Crucially, it will assist in maintaining
interest in the brand and growing BOS’s share-of-shelf across categories. He also believes
that innovation has a greater role to play in allowing the business to scale. He has been
reading about the four I’s of digital marketing: identification, information, interaction and
innovation, and feels that this approach could contribute to BOS’s broader marketing and
business development efforts. As Dave heads towards doors of the lift that will take him to
his departure gate, he reminds Marié that he will be joining her in Amsterdam shortly.
Before he dials off, he promises to give some thought on the flight over to how they could
build awareness in the areas around those AH supermarkets located in areas where BOS
has no lower awareness levels. For Dave, somewhere between low-contact supermarket
aisles and high-touch publicity stunts lies the answer.

7. Ongoing internationalisation challenges

7.1 Psychic/cultural distance
Another question Dave has raised before with his team is the extent to which BOS’s
innovative and creative approach will appeal across different markets and cultures.
Grant had always maintained that the brand was founded on values with inherent
universal appeal, and that BOS’s fun and healthy credentials resonate globally. Dave
agrees that in recent conversations with Marié, they had also discussed the extent to
which the brand may need to be adjusted for different markets. The Netherlands and
Belgium were selected as BOS’s first-entry markets in Europe, in part because of
Europe’s geographic proximity. This reduced transport-related operational costs and
the degree of travel and communication complexity, especially relative to Asia and the
USA. Another important type of distance that Dave’s team took into account was cultural
(or “psychic”) distance. The Benelux region, in particular, offered certain cultural and
language similarities to certain parts of South Africa, and there was agreement that this

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 13

 would ease the business’ initial transition into international markets[24]. An appreciation
for lighthearted/quirky humour was certainly one example (BOS’s “designer
irreverence” had been well received to date).
However, even there, Marié finds that the appropriateness of BOS’s three platforms
differed by cultural context. In The Netherlands, for example, there is a strong emphasis
on design and art, with most of the brand ambassadors and influencers moving in
related circles. The design scene there is very open, expressive and does not take itself
too seriously, which results in a comfortable fit for the brand. In Belgium, on the other
hand, BOS engages with more consumers through their music platforms; here, the
brand was often seeded through outdoor sporting and music events. This was in part
due to the brand’s relationship with Jet Import, but Dave felt that there were also certain
cultural nuances that set the markets apart. As BOS pushes forward into new markets
that are less culturally similar, there is certainly more work to be done to ensure that
cultural distance is taken into account and mitigated where possible. As BOS entered
each market in Europe, they learnt more about how to internationalise effectively, where
to take cultural nuance into consideration and where to stick to the way they had built
the brand at home. Much of this learning came through networks and contacts in those
markets, but much of it was also based on a clear understanding of BOS consumers
and influencers on the ground.

7.2 Country of origin role

Relatedly, there was the matter of BOS’s South African origin. There was agreement among
the team that “South African” or “African” should not be one of BOS’s primary attributes.
Rather, subtle African references[25] hinted at BOS’s African roots. However, the brand
was ultimately created to be a “global brand with African roots”. There were many other
brand attributes the BOS team wanted consumers to recall before “South African”. On the
other hand, however, Rooibos’ natural benefits were increasingly recognised abroad, and
BOS’s Rooibos base was a significant source of differentiation and appeal in the European
markets. Grant had often noted that Rooibos was the ultimate source of BOS authenticity.
As 100 per cent of the world’s global Rooibos supply is grown within a 100 km radius of
Klipopmekaar farm in South Africa’s picturesque Cederberg mountains, this sense of
provenance was still important.
Although no formal market research on the subject had been conducted, Marié believed –
based on her interactions with customers – that the majority of European consumers did not
know that BOS came from South Africa. In fact, many brand fans were under the impression
that BOS was a local European product. Most who read the back of the pack viewed BOS’s
South African heritage and backstory favourably, but Marié wondered if this would be the
case elsewhere. The Netherlands, Belgium, Switzerland and Sweden were relatively small
countries with highly educated and well-travelled populations. Would other consumers who
were less familiar with South Africa’s countryside, culture and national tea understand or
appreciate the fact that BOS was South African? Would they know what Rooibos is? Would
it be better to tweak the brand to either downplay or up-play these provenance
components? Certainly, research conducted recently suggested that many consumers can
and do form negative associations around products from emerging market contexts such
as South Africa, based on assumptions about their quality and safety. In addition, some
countries were more patriotic in the purchasing habits and were naturally less likely to buy
foreign products. When he studied and worked abroad as a Management Consultant, Dave
had observed that consumers are not equally adventurous and open-minded the world
over. The extent to which other countries in Europe and further afield would appreciate
BOS’s African roots or its quirky and colourful South African sense of humour remains to be
seen.

PAGE 14 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

7.3 Legislative and legal hurdles
Another set of complications, although anticipated, were legislative. Not only did BOS
have to comply with onerous EU product and packaging standards but also had to
change their label design for these markets. Furthermore, listing in AH had been a coup
and had not gone unnoticed by Nestle and Unilever. Within six months (and based on
some energetic lobbying behind the scenes, Dave suspected), Brussels passed new
legislation that forced BOS to change its product name too. These new regulations
specified that only products made with Ceylon-based tea leaves (Camellia sinensis)
could be called ice tea. Initially, the team had been flummoxed. In true BOS style, a
workshop was called over Skype one Sunday afternoon, and the matter was resolved
within 4 min – a record even for BOS.
Marié had long felt that Rooibos’ credentials should be up-weighted on BOS’s packaging
without sacrificing its iconic simplicity. She had been tracking Google searches and entries
around the Rooibos name globally and had watched their key ingredient and differentiator
rise to fame over the past three years based on anti-oxidant and anti-inflammatory
properties. Henceforth, it would be BOS Ice Rooibos. The team approved the change
unanimously. Nevertheless, running different naming conventions and label formats is
creating complications. Phrases for search engine optimisation now need to be built
around two different product names, and global social media profiles must alternate
between the “tea” and “Rooibos”. Operationally, there was also now a risk of running too
many products labelled for one market and not enough for another, which could lead to
stock management headaches down the line. It is seldom that a month goes by without a
legal letter arriving that requires some form of expensive response[26] – Dave recognises
that this is largely a tactic to wear the BOS team down, but the expense (financial and in
terms of focus and effort) is very real.

8. Conclusion
8.1 Opportunities near and far
The BOS team and investors are truly fortunate, the business and brand’s growth has
far exceeded expectations. Their challenge at present – to choose between so many
good opportunities – is a great challenge to have. As a Johannesburg thunderstorm
moves in outside, he runs through the options one last time. They could stick in the
Western European countries (where BOS has been present for a few years) and put all
the team’s efforts into becoming the third biggest ice tea brand there. Alternatively, they
could expand more aggressively into the rest of Europe and invest greater energy into
growing the brand in France and Spain. They could seek additional investment and take
advantage of the US opportunity that appeared to be developing, or they could invest
this same capital into accelerating their internationalisation in Europe – perhaps in
Germany first and the UK – a popular exit point for Canada and the USA. They could
even leverage their brand exposure and distribution relationships to build the brand
elsewhere on the African continent. Each of these options came with a unique set of
potential upsides and downsides. Dave knows that if the team chooses to go ahead with
a US deal, they will encounter many of the challenges they had experienced when
entering Western Europe (cultural distance and myriad legal and competitive hurdles
among them). They will need to weigh the risks up against the rewards and decide just
how thinly they could spread themselves to grow at the maximum possible pace while
still protecting the many facets of their business and brand that have worked so well to
date. Dave and his team seem to have many decisions to make and, as is often the case
these days, so little time to make them.
He settles into his seat bound for Amsterdam, with some time to think through the more
immediate challenges around bolstering brand awareness for BOS in The Netherlands. He
finds himself agreeing with Marié; no consumer should encounter their brand for the first
time in the aisle of a supermarket. In The Netherlands, a country of under 17 million people,

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 15

 this challenge was far from insurmountable, especially given the traction Marié and her very
limited team had already managed to achieve there. Ultimately, however, this is a small
component of a bigger set of questions, which BOS needs to answer (and ultimately
innovate around) to continue growing the business. How will BOS best scale its high-touch
and personable brand for the world’s mega ice tea markets? What are the key strategies
Keywords: they will need to put in place to ensure that they leverage and remain true to the brand?
Marketing, How can they achieve this within an efficient timeframe to ensure that they do not miss out
International marketing, on too many opportunities along the way? To that end, before he switches his phone to
Small businesses, flight mode, Dave takes a few minutes to send a reply to Rick’s invitation. He is not certain
Entrepreneurship, that it is the right call to make, but then, as with many junctures along BOS’s
Globalisation, internationalisation journey, he realises that more time spent thinking probably would not
Brand management/equity bring greater clarity than he already has.

Notes
1. RTD tea in the USA: www.euromonitor.com/rtd-tea-in-the-us/report (Euromonitor, 2015).
2. RTD tea in the USA: www.euromonitor.com/rtd-tea-in-the-us/report (Euromonitor, 2015).
3. RTD tea in The Netherlands: www.euromonitor.com/rtd-tea-in-the-netherlands/report
(Euromonitor, 2015).
4. Source: www.bdlive.co.za/business/retail/2013/09/23/bos-plans-to-take-its-ice-tea-to-rest-of-
africa (Business Day live, 2013).
5. Source: http://canadeanreportstore.industryreportstore.com/soft-drinks/iced-rtd-tea-drinks/
global-iced-rtd-tea-drinks-report-2013.html (Canadean, 2013).
6. Design Indaba is an annual global design conference that takes place in Cape Town in February.
In 2011, BOS was a finalist for the coveted MBOISA (Most Beautiful Object in South Africa) Award.
7. BOS is a privately and closely held company with majority shareholders, South African early-stage
venture capital firm holding the largest number of shares. Dave, Richard, Marie, Alison, William
and Grant also hold significant stock. The balance is held by trusts and private individuals
including Sir Alex Ferguson, former Manchester United Manager.
8. Birkenstock is a German brand of cork and leather orthopaedic sandal, popularly perceived as the
quintessential footwear choice of more ardent and devout natural or ecoconsumers.
9. Rooibos tea is made from the fynbos plant of the same name, which is endemic to a small
mountainous region of the Western Cape province. It is very rich in anti-oxidants, electrolytes,
anti-inflammatory properties and essential minerals and contains no caffeine or preservative.
10. BOS lemon ice tea contains 6.8 g of carbohydrates (predominantly sugar) per 100 mL compared
to Lipton’s 8.2 g and Arizona’s 9 g. Coca Cola contains 10.6 g (source: BOS Brand Introduction,
BOS, 2013).
11 Natural sports (or “free” sports) are defined by the BOS team as outdoors, high energy sports
which are generally free to participate in and involve a high degree of interaction with natural
elements.
12. RTD tea in South Africa: www.euromonitor.com/rtd-tea-in-south-africa/report (Euromonitor, 2015).
13. RTD tea in the USA: www.euromonitor.com/rtd-tea-in-the-us/report (Euromonitor, 2015).
14. Like Woolworths in South Africa, Albert Heijn is a full service (not discount) supermarket that offers
a premium customer experience and higher quality products. AH’s market share in The
Netherlands is currently 30%).
15. Lipton Red Tea launched in South Africa in 2012, 18 months after BOS (unlike BOS, Lipton “Red
Tea” is a rooibos flavoured product, not a rooibos-based product).
16. Jet Import is a well-respected importing, distribution and marketing partner that services multiple
brands in Belgium, including BOS and Red Bull. Belgium is one of the few remaining countries in
which Red Bull relies on a third party for these services.
17. View video content related to BEV and #bostweet4t: www.youtube.com/watch?v⫽mzUXa6JThVQ
18 View video content related to BOS’s cycling giraffes: www.youtube.com/watch?v⫽hLpIyRpP9wU
19. Download the BOS Runner game app for iPhone and Google Play: http://bosicetea.com/
bosrunner/

PAGE 16 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

20. View public BOS can design submissions: http://bosdesigner.com/can-3d-8
21. This contribution is only communicated in video content on the BOS website and is not included
in public campaigns or on packaging: www.bosicetea.com/#section-sustainability
22. BOS Sport took just four months to develop from concept to final product.
23. In late 2015, BOS Sport launched its own website: www.bossport.co.za/
24. Afrikaans, one of South Africa’s 11 official languages, draws heavily on its Dutch ancestry and
bears close resemblance to both Dutch and Flemish.
25. The bright blocked colours of the pack designs, the BOS of Rooibos (an Afrikaans word) and the
lion were all selected as being emblematic of South Africa during the initial brand design phase.
26. Most legal issues that are raised involve trademark and other intellectual property matters or
marketing claims.

Exhibit 1

Figure E1 The global ice tea market

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 17

 Exhibit 2

Figure E2 Ice tea market and competitors – South Africa

Exhibit 3

Figure E3 Marketing and activations 2015 – The Netherlands

PAGE 18 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016

Exhibit 4

Figure E4 On-premise/HORECA merchandising examples

Exhibit 5

Figure E5 Sales contribution and growth by region

VOL. 6 NO. 4 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 19

 About the authors
Christopher James Human has extensive practical experience in branding and has
completed his MBA at the UCT Graduate School of Business. His interests are in brand
management and now in management consulting, having joined a large international
management consulting firm.

Geoff Bick is a Professor of Marketing and Academic Director of the UCT Graduate School
of Business, which he joined in 2012 from Wits Business School. He lectures marketing to
MBA students and on executive education programmes. He has published extensively in
local and international journals and is an NRF-rated researcher. Geoff Bick is the
corresponding author and can be contacted at: geoff.bick@gsb.uct.ac.za

PAGE 20 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 4 2016