Sauerkraut Processor

Company Overview

 

Sauerkraut Processor - The Company is the largest sauerkraut processor in the U.S. marketing its own brands and co-packing for industrial food companies.  The Company is vertically integrated, operating its own farms and contracting with third-party cabbage growers and also imports olives.

Engagement Overview
•  Fort Dearborn was engaged by the Company to perform an overall assessment of the Company, review the Company’s financial forecast and assist management in preparing a formal operating plan.

•  FDP performed the following key steps:
•  Assisted management in refining the Company’s strategies with respect to pricing and supply chain management  which led to specific price increases and cost reduction initiatives
•  Provided the Board of Directors and  debt lenders with an independent evaluation of the co-pack agreement with the Company’s largest customer including an assessment of the economic benefit and risks associated with modifying the arrangement
•  Formalized the Company’s management reporting and review processes by helping management develop formal weekly and monthly management reports and initiating a formal monthly management review meeting
•  Performed industry research and evaluated the Company’s plan for growth via new product development

Results
•  FDP identified potential pricing and supply chain savings opportunities.

•  Identified and presented key strategic issues  to the Board of Directors and independent directors, and assisted in formulating the Company’s go-forward strategies and tactics.

•   Presented our assessment to the Company’s Mezzanine Debt Lender and its Investment Committee to provide an independent assessment of the Company’s strategies and ability to achieve forecasted results.