Game changers in business
First MIBAS Debate of 2015 a Success!
Premium Cola and Viva Con Agua inspire students to become game changers in business
Are you thinking about joining good, old corporate Germany after graduation? Think twice! Nowadays, more and more entrepreneurs are opting against the neo-classical route and are instead embracing more innovative, social business models that not only generate profit, but also enhance the welfare of society and planet earth as a whole. Two prime examples of successful social enterprises are Viva Con Agua and Premium Cola. The MIBAS-Debates team was so inspired by their success stories that we invited Uwe Lübbermann of Premium Cola and André Lau of Viva Con Agua as guest speakers to our fourth MIBAS Debate entitled “Game Changers in Business: using Innovative Business Models to foster Sustainability”.
On the 12th of January, over 70 people, including students, professors, and former guest speakers, attended the fourth MIBAS Debate at the guesthouse of the University of Hamburg. The event was moderated by the MIBAS student Tobias Froese, who began the event by introducing the guest speakers and explaining Osterwalder and Pigneur’s business model canvas, which acted as a framework for the entire discussion.
Viva Con Agua Wasser GmbH is the world’s first all-profit organization based in Hamburg. Viva Con Agua collaborates with aid agencies such as the Welthungerhilfe (World Hunger Aid) to help end hunger and poverty around the world. Viva Con Agua raises funds for water projects in Africa, Asia and Latin America not only by participating in cultural- and sports events, but also through its first social business model Viva Con Agua Mineralwasser (Mineral Water). Simply by buying a bottle of Viva Con Agua mineral water, the consumer helps promote access to clean drinking water and basic sanitation around the globe.
Premium Cola is a small beverage company, which has been on the market for over 13 years. It is everything other than a mainstream business. It has no office; all employees receive a standard wage; and it is run by an internet-collective based on the principle of consensual democracy. Business decisions, finances and investments are discussed and voted on via email. If one member of the collective votes nay, the proposal is deemed rejected. All in all, Premium Cola wants to exemplify and promote a fair, ecological, and socially viable economic model in its highest form.
These two social enterprises vary drastically not only in terms of their structure, but also in regards to their strategy. Premium Cola aims to make no profit; it just wants to make enough money to cover its fixed costs. Premium Cola has no formal agreements with its cooperation partners, i.e. suppliers and retailers; the partnerships are solely based on trust. Furthermore, the beverage company does not market its products; and attracts new customers and retailers primarily via word of mouth. Its strategy has paid off. To date, Premium Cola has experienced only two payment defaults and no legal disputes. Currently, Premium Cola just manages to meet the continually growing demand for its products. If demand continues to grow at this rate, Premium Cola will have to start cancelling orders, says Uwe Lübbermann, Premium Cola’s “central coordinator”. At the moment, the company’s success is such that it is actually difficult for the business not to make a profit.
In contrast, Viva Con Agua opted for a somewhat more conventional, but yet alternative business model to ensure sufficient funds for its social projects. Viva Con Agua consists of three branches: Viva Con Aqua Wasser GmbH (for-profit company), Viva Con Agua e.V. (charity association) and Viva Con Agua Stiftung (foundation). Furthermore, it markets its products via multiple channels, e.g. social media platforms, music festivals, charity soccer matches. André Lau of Viva Con Agua describes the water bottles as “liquid flyers.” The labels on the bottle inspire the consumer to support Viva Con Agua’s water initiative and the bottle itself provides a vehicle through which they can easily make a contribution. Millions of people can make a difference without feeling a financial loss. To intensify customer relations, Viva Con Agua also offers sponsoring memberships and project trips.
Both Uwe Lübbermann and André Lau used to earn far more money than they do today, whilst working for traditional businesses. They admit that it is not easy being different, but they; nevertheless, would not want to go back. Now, they both have jobs with a two-fold return: increased social- and personal welfare. Would you give up a job with such a return?
The business models of both Viva Con Agua and Premium Cola are groundbreaking and exemplify what a successful social enterprise can look like. Both models serve as an inspiration and show that opting for a more sustainable business might bediificult, but nevertheless worthwhile.