In this case study, a US sugar company engaged CPL Business Consultants to assist with its business development, growth and diversification strategy. Based on its experience and diverse knowledge of the b2b ingredients market, CPL was able to find realistic strategic options with a close fit to the client’s strategic objectives. The client subsequently entered a new market in a joint venture partnership.
Business Development Strategy for a US Sugar Company
This project was the first part of an ongoing process to assist a US-based sugar company in diversifying its business. The client had seen a reduction in sugar beet cultivation requirements and, consequently, a reduction in the production of sugar. As a result, a large acreage which was previously used to grow sugar beet was now surplus to requirement. The client wanted to determine what the realistic alternatives were for new business developments that would ‘refill’ that acreage with alternative crops.
Initial Meeting
Initially, CPL had a business development strategy meeting with the client to discuss options in broad terms. CPL produced a background report on potential options, which included case studies on the paths other sugar companies had followed to diversify and reduce their dependence on sugar. This paper considered what other companies had thought about doing, what they had actually done and how successful they had been.
Follow-Up
After this first meeting, CPL laid out specific strategic recommendations for the client with an implementation path to achieve these objectives. CPL came up with 6 initial alternate proposals, which it discussed with the board discussed. We then analysed these opportunities further to determine their strategic fit and their potential to generate sufficient revenue and profit.
Outcome
CPL completed further work on these proposals and other options generated by CPL and internally within the company. The client subsequently pursued one of these ideas as a joint venture with another company.
In addition to this business development, growth and diversification strategy for a US sugar company, CPL has worked on many other diversification projects. For example, it has worked on ingredient portfolio diversification, industrial sugars, rare sugars, and acquisitions. You can find other relevant projects by browsing this site or using the search bar on this page. Have a look at our Introduction and Brochure for a description of our consultancy work. You can also review Eight Case Studies.