Beverage Bottler

Phoenix served as Restructuring Advisor and led the refinancing for a $50 million beverage bottler and distributor.

The Client

Phoenix’s client was a $50 million family-owned Dr. Pepper and 7-Up bottler based in PA.

The Challenge

The Company defaulted on its senior secured credit facility. Its bank was concerned that the downward revenue trend would continue as a result of the Company’s lack of focus and direction. Furthermore, the companies that owned the major beverage brands were similarly concerned with their shrinking market share in the Company’s territory, which was accompanied by steadily shrinking gross margins. The Company was finishing its third straight year of losses.

The Solution

Phoenix’s initial assessment concluded that the Company was pursuing a strategy, proffered by the soft drink brands, to pursue discounted volume. The brands had historically provided the Company with incentives to pursue this strategy but it had resulted in the deteriorated financial condition of the Company. Although the Company had a talented management team, they were misplaced from an organizational perspective. Phoenix realigned the management structure by reorganizing the finance, operations, and marketing departments. Phoenix also analyzed and revamped the merchandising strategy to be more competitive against the big brands. Within two months of Phoenix’s involvement, the Company saw a 30% increase in gross margin and the Company returned to profitability. Finally, Phoenix refinanced the Company’s debt and the company has been on solid ground ever since.

Phoenix IB

Primary Industry

  • Distribution

Secondary Industry

  • Food and Beverage

    Primary Services

  • Turnaround ManagementBusiness / Operational AssessmentsFinancial ForecastingStrategic AdvisoryRefinancingProfit / Operational Improvement