Vertical integration

For a food business – Identification of opportunities to create a high value product and reduce food waste
Explore below

The client and context:

·      The client is a large scale, international food business. The company has a high degree of upstream vertical integration and goes from agriculture to transformed food products.

·      The company commits to buy from growers large amounts of produce and they want to return the best possible price to growers.

The challenges:

·      The client was looking for a high value transformed product to integrate into their value chain and to assess the right strategy to integrate that new product into the business (acquisition/greenfield/subcontracting)

What we Did:

·      We explored a variety of potential transformed products which were not fulfilling the economic objectives of the project.

·      We conducted a market study on a brand new product line which was holding a great market potential and returning the appropriate profitability. We then explored the integration of this product into the client’s value chain.

·      We developed an implementation model involving a subcontracting agreement and a successful product launch. The work performed involved a selection of business model, a selection of supplier, operationalisation and financial modelling (for board approval).

What we achieved:

Doubling of the return to growers for the class 2 produce. Food waste reduced by 5,000t/year Creation of a new business line with a gross margin higher than the group’s average by about 10 percentage points. Improvement of the overall group’s profitability and €10- 15m value creation for shareholders.

For a new venture of a local confectionary chain - Business cases and planning for the proper runnin...
Digital Transformation in Healthcare: Leveraging Analytics and Digital Technologies to Improve Patie...
For a world leader in ground transportation – Business modelling for the overall company’s transfor...

How can we help you?

Get in touch with us via Contact us form
MEET OUR
Expert Team

John Huang (黃健銘)

Senior Partner, China | Risk Management, Advanced Analytics, Banking

Hassan Al-Shama

CEO | Strategy, Real Estate, Commerce

Umang Sahai

Senior Partner, India | Healthcare, Public sector, Government relations

How can we help you?

Get in touch with us via Contact us form