Vendor Due Diligence for Little Moons


A leading, high-growth UK-based ice cream snacking brand, Little Moons, asked FSA to provide Commercial and Operational Vendor Due Diligence, as part of a stake sale process to propel them towards their next growth phase.

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 product and brand over competitors, the vast, tangible room for growth in the category that it has defined across Europe, and the revenue potential provided through the development of a new production facility:

  • Conducted analysis on the ice cream markets across UK and Eurppe using scan and panel data, and other international markets using Euromonitor data
  • Used both management financials and scan data to evaluate the performance of the brand across their key markets
  • Conducted interviews with key customers across retail and foodservice, as well as distributors, to understand category trends, the clients strengths and weaknesses, and opportunities for further growth
  • Developed a model to forecast the growth of an emerging sub-category within ice cream snacking within UK and Europe in retail and foodservice
  • Led a U&A study to understand consumption and purchase drivers of ice cream, and to define consumer sentiment around the strength of the clients brand relative to competitors
  • Diligenced the client’s existing operational capabilities, including building a capacity model, as well as the plans (CTA, programme length, capacity) for developing a new site to meet growth aspirations
  • Utilised all of the above and expert knowledge to appraise the clients 3-year plan across markets and channels and define potential risks / upsides

Results delivered

Little Moons further employed Food Strategy Associates during the bidding period three months later to provide an update to the Operational Due Diligence given the importance of new site delivery in achieving the growth plan. The sale process successfully completed in March 2022, with a minority stake sale to L Catterton.