Kyrö Distillery Company: Brutally Finnish in Japan

Kyrö Distillery Company (Kyrö), founded in 2012 in Isokyrö, Finland, focused on producing rye whisky from Finnish rye. However, it took an average of three years for one batch of whisky to be produced and ready for sale, so, to cover their costs and stay afloat, the founders decided to start producing gin, which could be produced faster. As luck had it, in 2014, Kyrö’s rye-based Napue Gin was named the best gin in the gin-and-tonic category in the UK-based International Wine & Spirit Competition, and Kyrö now had two promising products in its roster: rye whisky and rye-based gin. <br><br>Kyrö exported its products to overseas markets, including Japan, where its results had so far been modest, but it planned to expand and grow its businesses in Japan. As an underdog in an industry dominated by major global players, Kyrö had to work to increase its market share. It relied on its authentic brand image, original products, and brand ambassadors. In September 2022, as one of Kyrö’s co-founders travelled to Japan to meet with the company’s main Japanese distributor, he wondered, How could the company gain growth in a market that was highly competitive and dominated by well-established local companies?

This case can be used in strategy, marketing, and international business courses at both undergraduate and postgraduate levels. The decision-based case asks students to play the role of Kyrö Distillery’s co-founder, analyze the situation described, and formulate managerial recommendations related to the company’s business expansion in Japan. After working through the case and assignment questions, students will be able to do the following:<ul><li>Evaluate market opportunities for business growth.</li><li>Explain how smaller companies can compare alternative strategies for business growth in a highly competitive market environment.</li><li>Outline the steps taken to make and justify a strategic go/no-go decision.</li><li>Describe ways in which smaller companies can position themselves vis-à-vis major players in a highly competitive industry.</li></ul>

• agriculture
• international expansion
• craft spirits
• entrepreneurship