Food Technology Manufacturing (TEC Limited) and FMCG Food Retail (Elvins Snack Products)

SBG Advisory was appointed by the majority shareholder in an interim capacity to turnaround this business comprising a food manufacturer developing leading edge oven technology and a FMCG food retail business with national distribution located in Victoria.

We were responsible for a time-critical business restructure, recovery and exit process; the business having experienced significant losses in prior 2 years trading. We undertook forensic financial analysis, formulated a remedial work out strategy, successfully securing increased market share, developing IP for manufacturing technology and establishing a platform ready for divestment of the business to the dominant market competitor.

A 3-year business plan including forecast investment was prepared. We implemented strategic marketing initiatives including re-branding and rejuvenated sales effort, contract negotiations with Coles and Woolworths supermarket chains to retrieve shelf space in the highly sought after and competitive snack food category, business process improvements including management restructure and production processes to create efficiencies. We re-evaluated the value chain and adjusted pricing, unit costs of production, branding, repackaging, and raw material supply contracts. Our financial model reflecting a new value chain incorporated production and sales targets, and forecast return to profitability sufficient to launch a controlled sale / exit strategy.

The oven technology component of the business continues to be successfully developed by the parent company.