Foodservice/ Ingredients
Customer & Market And Operational Due Diligence Of Leading Processor Of Freeze-Dried Fruits: Rapid Assessment Of Technology, Competitive, Customer Concentration, And Operational Risks
Provided clarity on risks (technology, competitive, customer concentration, and operational), and growth opportunities ahead of bid. Through interviews with 30+ competitors (domestic and import), distributors, equipment suppliers, academic experts, and customers, and extensive secondary research, Gotham established: the applications and advantages/disadvantages of freeze-drying technology; the target’s positioning vs. domestic and international freeze-drying processors in South America, China and Europe; and the stability/growth of its top customers. Gotham’s analysis revealed while the market was growing and the target was well-positioned and poised for growth, it could potentially face increased competitive intensity and margin pressure. Our client accounted for all these risks and tempered growth projections in its model.
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Operational Due Diligence of Leading Cookie Franchiser: Assessing Operations-related Acquisition Risks
Conducted 1-week operational due diligence of ingredient manufacturing operations for a quick-service franchise company, targeting labor practices, safety and environmental compliance, and inventory practices. Reviewed of labor policies, including work rules, attendance policies, and basic compliance with overtime, lunch, and break rules. Determined that the facility had solid risk management operations, and recommended minor improvements in quality assurance and material handling. The PE firm purchased the company and followed through on recommendations from operational due diligence.
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Operations Improvement At Ethnic Foodservice Products Manufacturer: Rapidly Capturing Manufacturing And Logistics Cost Reduction Opportunities
Captured $1.2MM in operations run-rate savings in 12 weeks at an ethnic foodservice and retail private label products manufacturer by implementing shop floor management best practices. Gotham worked on the shop floor to: observe operations; identify potential improvement opportunities; provide immediate guidance to client personnel; and troubleshoot and pilot solutions. We improved line through from ~225 cases/shift to ~375 cases/shift, reduced fill weight by 3-7% to minimize overfill, reduce floor scrap by 50%; and eliminated expired rework scrap. To ensure sustainability and further improvements, we: trained client personnel, put in place process changes, tools, KPIs and reporting system; and identified/planned next set of improvement opportunities. Gotham also launched logistics savings capture by developing direct ship pilot and facilitating conversation between company sales teams and foodservice distributors.
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Customer & Market Due Diligence Of Premium Dessert Supplier: Establishing Consumption and Shopping Behavior Post-COVID
Conducted 3-week early Phase I customer & market due diligence to: (1) establish the U.S./Canada retail premium dessert market size/consumer trends; (2) establish the U.S./Canada retail in-store bakery (ISB) dynamics; and (3) assess the U.S./Canada foodservice premium dessert market size/dynamics – all with the look to the COVID impact. To this end, Gotham: conducted a consumer panel survey; interviewed retail bakery managers, bakery buyers/category managers, and foodservice dessert buyers; analyzed NielsenIQ data at the product and retailer level; established the business outlook of key retail and foodservice customers; and established the competitive landscape for key dessert suppliers. Our fact-based market and competitive dynamics assessment allowed our client’ deal team to reliably inform its investment committee on the opportunity.
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Customer & Market Due Diligence Of Foodservice Distributor/DTC Fulfillment Services Provider: Deciphering Nascent DTC Frozen Foods Fulfillment Market
Conducted 3-week customer & market due diligence to establish: frozen DTC fulfillment market size and the ability to sustain COVID-19 bump; the target’s competitive positioning in the frozen DTC fulfillment market; and the target’s reputation/positioning with foodservice distribution customers. Gotham: mapped universe of 350+ frozen DTC food companies; built bottom-up frozen DTC fulfillment market model; conducted 11 DTC fulfillment customer interviews; established competitive landscape of frozen DTC fulfillment services providers; and conducted 13 interviews and 73 online customer surveys of foodservice distribution customers. Gotham’s findings enabled our client to move forward confidently with the potential acquisition.
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Exit Preparation/Positioning Of Hispanic Foods Manufacturer: Establishing Company’s 5-year Growth Stack
Conducted a market dynamics and whitespace opportunity assessment to craft a fact-based growth story to inform management’s growth case and provide potential buyers with an understanding of company’s business and potential future growth. Gotham: established key market trends in all retail and foodservice segments; built an in-depth retail market sizing model of company’s product categories; built a database of Hispanic and mainstream restaurant chains and built a bottom-up foodservice market sizing model; and developed the company’s whitespace opportunity model for retail and foodservice. Gotham’s assessment provided the client with quantified fact-based view of company’s growth opportunities leading to a highly contested auction.
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