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Commercial Due Diligence – Salty Snacks

Markets: UK

Food Strategy Associates had previously worked with Verlinvest on their evaluation of the KP Snacks acquisition.  Verlinvest approached us again when Tyrrells was put up for sale by its private equity owners, Langholm to provide commercial due diligence in support of a potential acquisition.  Tyrrells had grown strongly in prior years both in the UK where it was taking share from Kettle the market leader in premium crisps and also through export.  As well as providing a broad commercial due diligence assessment, our challenge was to take a deep look at the future growth potential of the business, by validating the UK growth plans of the business and assess the potential of the brand internationally.

We worked alongside other advisors and reported back regularly to our client through a combination of formal and informal briefings and reports.  We attended management presentations and site visits and reviewed key documents and business reports, to evaluate the business performance based on our knowledge and experience in the industry.

In the UK we undertook a retailer by retailer analysis of brand performance, profitability and future brand potential.  In international markets, we leveraged our network of Associates – experienced industry professionals with specific category experience in each of the primary export markets, in order to get a view on the ground of the consumer and customer attitude to this quirky, premium British brand.  We identified upsides and risks to the plan which were incorporated into Verlinvest’s business evaluation.

Eric Melloul, Investment Director: “We have now worked with Will Carter and Food Strategy Associates on two projects where they have given commercial due diligence support to our evaluation of two UK food businesses. The input was consistently of real value and demonstrated deep knowledge of both the category and also of the wider UK food industry. The analysis was prepared with thoroughness and communicated clearly and professionally, adding real value to that provided by our internal team and by our other advisors with whom Food Strategy Associates cooperated in close teamwork. We would certainly consider employing the services of Will and Food Strategy associates again on further projects”