Food Manufacturing - Developing Strategy

We helped an iconic Australian food manufacturer to
better understand the global market dynamic.

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Client Situation

  • Our client is a large food manufacturer who services both Retail and Food Service channels with well-established brands

  • The company was unable to pursue future growth due to constraints in capacity and capability, and needed to make a decision on further capital investment

  • To support the investment decision, the company wanted to form a view on the long term sustainability of its Australian manufacturing

  • Acutus was engaged to build a detailed Fact Base of market dynamics and form a foundation view on long-term sustainability

Our Approach

  • We adopted a value chain view of the industry to investigate potential opportunities and threats from ‘farm to plate’

  • By collating international data on input prices and production data from global players we were able to benchmark our client against competitors

  • We calculated the overall market size and mapped global trade flows to understand the positioning of the AUS market

  • Our analysis also included detailed information on profit pools, grower regions and margins, new supply models, competing crops, competitor profiles, and customer needs

  • Additionally, we analysed the financial performance of four international players

Outcome

  • Our analysis provided our client with an end-to-end view of the category and demonstrated their current competitive positioning, as well as potential risks and opportunities

  • The Fact Base informed eight key findings which were presented to the Executive team in support of new investment

Darren McGowan