Andrew Csicsila
Partner & Managing Director, Co-Head of Americas
Chicago
How we helped:
Looking to strengthen contribution margins and maximize EBITDA, an all-natural nutrition and wellness company with $600 million in annual revenue came to AlixPartners for a QuickStrike assessment.
Our five-step approach included a multi-pronged, cross-channel analysis of price elasticity and competitive pricing, a granular evaluation of returns on trade and advertising spend, and an assessment of baseline contribution margins. Our findings from these investigations, combined with an evaluation of commercial and financial data, allowed us to make tailored recommendations for ways to maximize enterprise value across the organization.
During this comprehensive assessment, we:
- Conducted a time-series analysis of two years of weekly transactional data to determine price elasticities, which allowed us to make pricing recommendations specific to categories and channels to maximize contribution margin dollars.
- Reviewed category-wide trends and analyzed the client’s positioning against competitors and across channels to evaluate proposed price increases.
- Performed an analysis of weekly returns on trade and advertising spend, which allowed us to provide targeted recommendations on allocating commercial spend to optimize by channel, event, and location.
- Conducted a comprehensive assessment of 20 food ingredients and seven packaging categories, streamlining operations throughout the journey from sourcing to distribution, and identifying 9.5% in cost-improvement opportunities.
1.7x
EBITDA margin increase
Our pricing and savings initiatives could drive EBITDA margins up to 1.7x over baseline, maximizing value to stakeholders. We designed a detailed, cross-category implementation plan and toolkit for execution to provide the client with a roadmap for realizing these savings.
