Investment opportunity assessment in the coffee industry
Consumer goods & retail

Valuing the coffee-capsules market worldwide and assessing different investment opportunities


Challenge

The client was considering a partnership with a leading European manufacturer to sell coffee capsules worldwide, leveraging its manufacturing and product know-how and the commercial network and expertise of its partner.

The opportunity entailed the construction of a new factory in another European country to supply the new markets.

Approach

Arthur D. Little conducted the following tasks : 

  • Dimensioning of the coffee-capsules market worldwide, building a model that scored each market and allowed configuration of different scenarios
  • Identification of the most interesting markets for each coffee-capsule system
  • Construction of a business plan for the following 5 years, assuming growth, change in price and variable capital expenditures upon sales by country and coffee-capsule system
  • Recommendations on growth alternatives given the company‚Äôs capabilities and market opportunities

Value

  • Business plan for investment opportunities
  • Advisory on current investment opportunity and other growth alternatives