four of twelve
Revenue Growth and Sale - Food Brand
Consumer · Value
1the challenge
Challenge: The private equity owner of well known food brand was concerned that the current pace of top and bottom line growth would not meet its expectations or enable a sale on attractive terms.
2the approach
Approach: A detailed market and sales analysis led to fundamental shifts in the way consumer needs were understood, and in the way the product portfolio was viewed. Traditional measures of profitability were shown to be inaccurate and misleading.
3the result
Result: Unprofitable SKUs were pruned immediately. The identification of unmet consumer needs created new sources of volume. A three-year plan was developed to grow revenues from $120 million to $200 million. The plan was implemented, revenue targets met and the company was sold, exceeding the shareholders’ objectives.