Case study · Private equity · Frozen foods

Growth Strategy and Size of Prize

Sized the distribution opportunity by market and retailer, and set where a fast-growing frozen brand should — and shouldn’t — expand.

Client

A private equity portfolio company (frozen foods)

Industry

Private equity · Frozen foods

Result

$27MM revenue growth

Capability

Analytic & Consulting Services

The situation

What the client was facing.

A recently acquired frozen-foods company had grown its main brand quickly through distribution gains and consumer demand — but mostly in a small set of primarily ethnic markets. Management wanted to prioritize distribution growth and needed to know how big the opportunity was.

  • Growth concentrated in a few markets

  • No view of the size of the distribution prize

  • Limited resources to spread across retailers

Our approach

How we got there.

Methods used

Size-of-prize modelRetailer-level analysisWhite-space analysis
  1. 01

    Built a size-of-prize model at market and retailer level

  2. 02

    Evaluated three growth avenues: deeper penetration at core retailers, expansion at moderately penetrated retailers, and white-space retailers

  3. 03

    Assessed markets with high, medium and low ethnic presence

  4. 04

    Outlined the key elements of the growth strategy and the watch-outs

Value created

$27MM

revenue growth

  • Focus on high-ethnic-presence markets, with selective entry into moderate ones

  • Avoid markets where the largest competitor is strongly present

  • Consider a new product launch in select markets to gain share

  • Stop investing in declining items; back innovation and high-growth items

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