PCG | Pacific Consulting Group

Food and Beverages

New complexities in consumer purchasing behaviour and a rapidly changing retail landscape are presenting challenges to companies in the food and beverage industry.

PCG has assisted leading companies in the consumer product sector to navigate both strategic and operational issues.

Through robust analysis and fact-finding processes we have supported our clients in identifying new opportunities for product growth, revitalising brands, developing new markets and addressing key resource issues.

Our Expertise

Client Results

Reducing Inventory Cuts Costs

A Beverage Company had a short-term requirement for identifying a significant upside. PCG helped our client generate $49 million in cash immediately, with an ongoing profit improvement of $12 million annually.

Business
Opportunity

The Beverage Company board recently appointed a new CEO. There was a need to identify a significant upside and implement it quickly. A large stockpile of inventory existed for one of the key inputs into production.

Our
Recommendation

There was an opportunity to turn an existing appreciating inventory asset into cash after a detailed investigation into the pricing and valuation of the inventory.

A second opportunity was to substitute a cheaper input into the production process, mixing it with the more expensive input without changing the end product's flavour.

A third opportunity was to enter into an arrangement with a key supplier to raise further cash using the stockpile of inventory.

Results
Achieved

The Net Present Value of selling off appreciating inventory and implementing the new proprietary substitution formula was $88 million.

Cash generated was $49 million.

Using the new substitution formula resulted in an ongoing profit improvement of $12 million per annum.

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