Shelf Stable Foods
Customer & Market and Operational Due Diligence of Private Label Canned Food Manufacturer: Establishing Growth Prospects, Margin Risk, CapEx Risk, and Operations Improvement Opportunities
In sync with the needs of each stage of the deal process, conducted phased customer, market, and operational due diligence, initially focusing on: 1) growth outlook – established the target’s category presence, identified key market trends, and built a model to project category growth; 2) competitive positioning – interviewed 27 PL and category buyers from supermarkets, wholesalers, food service companies, and brokers; and 3) CapEx and operational risk – visited the target’s 3 plants, assessed capacity, and reviewed operational improvement plans. After the client signed the LOI, Gotham conducted: a deep dive assessment of margin risk, using 7-year SKU-level price/margin data and outlook for major input cost drivers; and an in-depth operational diagnostic of material yield, direct labor, and inventory costs.
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Supply Chain Strategy at Global Soup Manufacturer: Refocusing North American Supply Chain for a New Competitive Environment
Created a North American Supply Chain strategy for a multinational soup company which had lost its scale advantages. Built upon a solid understanding of the company's operating strengths, the strategy leveraged collaborative alliances up and down the supply chain to extend the company's control of cans from fabrication to retail, and reduce costs in the entire system by 10-15%.
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Customer and Market Due Diligence of Regional Specialty Foods Manufacturer: Validating Growth Potential
Conducted Customer and Market Due Diligence to establish/validate that company could support 10+% CAGR growth and expand nationally. Analyzed IRI/Nielsen data, conducted extensive secondary research, built and ran scenario models, conducted field research and customer interviews to establish positioning and outlook of premium product companies overall and the target specifically, as well as feasibility and requirements for growing the brand nationally. Gotham team identified 4 growth levers for the company.
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Customer & Market Due Diligence Of Better-For-You Sweet Treats Brand: Establishing Brand Positioning and Category Expansion Opportunity
Conducted a 3-week customer & market due diligence to establish the health and growth profile of the target’s current product categories and validate the target’s product category expansion opportunities. To this end, Gotham: analyzed retailer-/SKU-level NielsenIQ data; conducted a survey of over 2,500 consumers; and conducted interviews with key food retailers and distributors. Gotham’s in-depth analysis of the low/no-sugar sweet snacks market, the target’s brand positioning, and the target’s growth opportunities provided our client with the robust, reliable fact base needed to compete aggressively in this hotly-contested auction.
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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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Operational Due Diligence Of Family-owned Food, Personal, And Home Care Products Manufacturer: Rapidly Establishing Manufacturing Outsourcing Economics And Requirements
Conducted rapid operational due diligence to establish manufacturing outsourcing economics at a family-owned food, personal care, and home care products manufacturer. Gotham quickly: built a bottom-up view of the target’s cost structure, current product costs, co-pack costs, and organization structure; conducted plant walkthrough and interviewed operations management; and interviewed companies in food and personal care products outsourcing. We established that outsourcing economics are slightly favorable as logistics and G&A would generate sufficient savings to more than offset a slight increase in food manufacturing cost. As our assessment indicated higher costs and risks associated with outsourcing food products, our client successfully pursued a restructured transaction of carving out personal and home care brands and products.
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