Whiskey and Cheddar: Ingredient Branding at the Caesan Cheese Cooperative (Brief Case)

The Caesan Cheese Cooperative is considering introducing a new high-quality, high-margin artisan whiskey cheddar cheese. Deidra Kelly, vice president of marketing and product development at Caesan, must recommend to the Board of Directors whether to launch the product using Jameson® whiskey as a branded ingredient or using a generically branded whiskey. Use of the branded ingredient would involve a licensing agreement with a leading spirits and wine distributor, Pernod Ricard USA (PR-U). Evaluation of the options requires an assessment of the product-company fit, product-market fit, marketing program, licensing agreement, breakeven sales volume, and achievement of the targeted sales goal. The case focuses on evaluating new product opportunities, specifically regarding product-company fit and product-market fit. In addition, the case allows students to discuss the power of branding and entering strategic partnerships to drive revenue. Students must also use their quantitative skills, such as conducting breakeven analyses and understanding the impact of licensing costs on gross profit margins. The case can be used to discuss product strategy, positioning, branding, and partnerships. It is recommended for upper-level undergraduate students or MBA students in courses focused on marketing strategy, product development and management, or branding.