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Feasibility Study

The assignment

Our client, an ingredients supplier to the soft drinks industry, was in the process of assessing the feasibility of building additional production capacity to supply the market in Europe and the Middle East. Canadean Custom Solutions was asked to provide a view of forward beverage demand, to understand how demand was likely to evolve by market and by category.

The aim was to allow the company to determine whether overall market potential justified the new investment and also which markets and categories offered the best volume and value growth targets.

Approach and delivery

In the categories in which the company operated most of the ingredients were imported from outside the region. Canadean was able to accurately match volumes from trade statistics with actual beverage consumption at both market and category level. By forecasting trends in consumption we were then able to provide a robust forecast of ingredients usage, again at a market and category level.

To create forecasts of category growth we leveraged our unique market knowledge, beverage industry forecasting skills and our network of industry insiders to provide insight into market trends and context.

We overlaid the forecasts of ingredient usage with a detailed route to market analysis, indicating the nature, importance and margin of opportunities at each level of the supply chain - from the warehouse through to packers, blenders and wholesalers to retail and the consumer.

Impact and benefits

The market and category ingredient forecasts enabled the client to assess volume and revenue potential at different levels, based on the company’s current market shares and assuming an increased share of incremental volume after targeted marketing activities. The route to market analysis highlighted key volume and value hotspots in the supply chain, which proved invaluable in planning future marketing activities.