A large Private Equity fund was looking at taking a significant position in an Australia based dairy ingredients supplier that focused on the restaurant sector. They wanted to understand the revenue upside opportunities in key Asia Pacific markets.
Given the lack of available secondary data on this segment, we engaged in large numbers of expert interviews with supply chain managers from QSR & convenience store chains in key markets such as Japan, Korea, China, Thailand, Philippines & India. We were able to provide educated guesses on the market size and growth potential for the product lines served by this dairy ingredient provider. In addition, we identified key barriers to entry in certain emerging markets where exporting was not a viable market entry strategy.
The Fund decided to proceed with their investment. The company has redirected significant resources to India and China and is pursuing joint venture and contract manufacturing opportunities to be more cost competitive.