By May 2004, Phoenix Organic had grown from its bathtub beginnings with its ginger fizz product 18 years earlier to become New Zealand’s leading manufacturer of premium certified organic and natural beverages. It had done so while living up to its founders’ vision of creating “a business that was good for the planet and good for the health of its people”. Yet, despite a growth rate of 25% over the last three years, sales were still only NZ$6.5 million. Having carved out a strong niche in the New Zealand non-alcoholic beverage industry, Chris and Deborah Morrison and business partner Roger Harris were united in their enthusiasm for growth. The question was how — through new products such as the Chai, through channels such as supermarkets, through developing overseas markets such as Australia or Malaysia, or through some combination? Whatever option they chose it needed to not only be good for Phoenix, but good for the planet and good for people’s health as well.

The case is based on interviews with people at Phoenix Organics in March 2004 and on an analysis of documentation provided by the company together with secondary sources. The company and people’s names are real and have not been changed.