Canola Oil Producer – Strategic Review
We conducted a strategic review for a vertically integrated canola oil producer.
Situation
Our client is a vertically integrated Australian Canola Oil producer. Their food service business had been under performing for a number of years and, in particular, a new brand that had been launched 18 months previously had stopped growing and was losing money.
Westbourne was engaged to conduct a strategic review of the food service business and develop a plan to drive growth and reduce cost.
Our Approach
We conducted a review of the edible oils market which involved sizing the market and understanding competitor positioning and value propositions.
This was followed by a review of the clients business including financial performance, sales and pricing, product and branding, operations and SG&A.
Finally we conducted qualitative research to understand consumer needs and preferences.
The internal and external analysis was used to create a strategic plan that would significantly reduce operating costs and drive profitable growth.
Results
The review identified opportunities to improve the product and pack format, focus on profitable customer segments and reduce conversion costs by simplifying the supply chain and sourcing key inputs.
This provides a path to increasing volume and revenue three-fold and doubling gross margin.
