The Owners of a leading player in the UK powdered hot drinks segment, with a strong presence in both Retail and Out of Home, asked FSA to provide Commercial Due Diligence.
What we did
FSA worked with Management to develop and evidence a clear and robust investment thesis while minimising demands on Management through close collaboration with other advisors. Over a 7-week period, we emphasised the strength of the clients capabilities as a brand partner, the vast, tangible headroom in its categories, and its unique knowledge and strong relationships in OOH channels
- Conducted analysis on the Hot Beverages and Hot Milky Drinks markets using scan and panel data for both in-home and OOH consumption
- Used both management financials and scan data to evaluate the performance of the businesses key brands
- Conducted interviews with key customers across retail, foodservice and vending, as well as brand partners, to understand category trends, the clients strengths and weaknesses, and opportunities for further growth
- Developed a model to forecast the recovery of key categories post-COVID and expected embedded growth rates for the business
- Led a U&A study to understand consumption and purchase drivers of Hot Milky Drinks, and to define consumer sentiment around the strength of the clients brands and planned future NPD
- Utilised all of the above and expert knowledge to appraise the clients 3 year plan and define potential risks / upsides
Sale process is still in progress.