Available January 2019

U.S. Foods and Beverages Category Profitability 2018

 Study Description

CST Consulting has gathered over 200 operating profit margin figures for branded offerings to inform our estimates of profitability in 85 US Food and Beverage categories. Our sources include annual reports, exhibits to those filings (fairness opinions, acquisition agreements), company presentations to investors, articles, reported acquisition multiples, and litigation records in which earnings were disclosed.

The benefits of the study to mid-sized food and beverage companies, private equity firms, and commercial lenders are anticipated to include:

• Rapid screening of new investment/acquisition proposals for fit with categories having acceptable operating profit margins
• Cross-checking projections for start-ups, turnarounds, and changes in strategic direction against “norms” in the category of interest
• Identification of attractive “White Space” opportunities to support brand extension and new product development assessments
• Competitors’ likely sources of profitability from adjacent categories, and ability to aggressively defend based on their overall portfolio strength
• De-risking investment decisions by understanding the stability of category structure: how likely are current levels of profitability to be maintained, increase, or decrease?

To help clients derive value from the study, CST Consulting’s principal, Michael Waks, will provide an hour of consulting (included in the subscription price) to interpret or help apply the data and findings.