How a global food company used due diligence for a potential partnership

Posted by | Fuld & Company

Due Diligence for a Potential Partnership

“This is all great. Thank you so much to the entire team for the work done on this.” – Senior Vice President, Category Business Units

Fuld & Company helped a leading global food company successfully evaluate the feasibility of a partnership with a California-based food & beverage manufacturer which had suffered a major product recall in 2022. Fuld’s extensive due diligence process included in-depth interviews and desk research to assess the recall’s repercussions, the target company’s recovery strategy, and its future market viability. Fuld provided the global food giant with actionable insights to enable informed decision-making concerning the partnership and ensuring strategic alignment with the company’s objectives.

Objective

A global food company was considering a potential partnership with a California-based food and beverage manufacturer and distributor. In 2022 the target company had suffered a major setback when over 50 of its products were recalled across the US. The global company therefore needed to evaluate the impact of this recall and understand the target company’s recovery strategy. It also wanted to and assess the target company’s current market position, strengths, any associated risks, and its long-term viability in order to make an informed decision regarding a potential partnership.

Challenge

The global food company needed in-depth competitive intelligence on the potential partner and its business landscape. This included evaluating the long-term feasibility of the partnership and identifying any associated risks, as well as:

• market positioning and performance
• growth areas
• strengths, weaknesses, and challenges
• sales by business segment
• sales team organization and distribution across the customer-base
• customer and competitor categories

Why Fuld

The client selected Fuld based on our successful track record in delivering Competitive Intelligence projects for them. They valued our ability to provide tailored, high-quality, data-driven insights based on robust methodologies, crucial for guiding strategic decisions. Our expertise in desk research and partnership evaluations, combined with our extensive network of food industry experts, further strengthened our capacity to provide efficient and effective support.

Approach

Given the limited availability of publicly available information on the privately held target company, Fuld initially focused on primary research. During this phase we conducted in-depth interviews with former employees and key stakeholders to gain comprehensive insights into the company’s operations, products, customer relationships, sales strategies, and the ramifications of the product recall.

Strategic sourcing and pricing models

Company policies and culture

In addition, we developed a comprehensive desk research strategy using both publicly available information and subscription-based databases. This enabled us to gather detailed insights into the product and market positioning of the potential partner.

Outcome

Fuld’s research provided detailed insights into the impact of the product recall and subsequent recovery efforts on the target company’s business. Furthermore, our comprehensive desk research and expert interviews built a deep understanding of the risks and opportunities of a potential partnership or investment with the target company. This included insights into:

• Customer demographics
• Pricing strategies across different segments
• Revenue distribution across business areas
• Growth strategies
• Market share analysis
• Sales team dynamics
• Customer outreach strategies

Impact

Fuld conducted extensive research into the impact of the 2022 product recall across critical business areas including the target company’s reputation, customer relationships, product portfolio, sales capabilities, and strategic alignment. This thorough analysis enabled the client to identify essential adjustments and evaluate the pros and cons of a potential partnership. Equipped with this informed perspective, the global company was able to make strategic decisions aligned with their objectives.

Tags: Competitive Intelligence, M&A