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Buy-side Due Diligence for a leading UK Soft Drink Co-packer

Sector:

Situation

On behalf of a major private equity fund, we undertook commercial and operational due diligence on a leading UK beverage co-packer of PET and cans, working within the carbonated soft drinks market.

What we did

Over the course of the project we:

  • Conducted analysis on the carbonated soft drink market in the UK using scan and panel data, in addition to evaluating the out of home market. We evaluated in the impact of COVID on the market and provided a view on how the target’s key customers would recover post-COVID
  • Conducted expert interviews to develop insights into competitors’ strengths / weaknesses. This was supported by extensive desk research to provide detailed competitor profiles
  • Used both management financials and scan data to evaluate the performance of key customers
  • Evaluated how ESG factors have historically impacted the soft drinks market and looked at the introduction of future legislation and the potential impact
  • Diligenced the target’s existing operational capabilities, including building a capacity model, as well as the plans 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

We identified the key opportunities and risks associated with the potential investment. Ultimately, our client did not progress with the purchase.