top glaciers Flashcards
who forms top glaciers
solo fruit, bilvioquet, essence galcer, Hudson and Lambert
goal of merger
post 10 million in sales in the first year and average 20% annual growth over the next 3 years
they all needed a factory so thats why they idid the merger
issue
only producinbg 10,000 l daily–> 33% capacity
struggling to penetrate the major distribution networks of supermarkets and compete with major chains
political legal
food regulations, tariffs, exportation at international and provicinail levels
trade restrictions on diary products in the us
Canadas supply management system ensures stable milk prices
got certifications for industry
economics
caandas ice cream market is valued at 2.9 billion with 1.9% annual growth
milk prices increasing
technological resources
new tech in factory machinery and automation processes for production efficency
semi automated production facility- reduced costs
50% decrease in container costs
exporting
sociocultural
changing health and lifestyle trends
high protein vs low protein
war on sugar
industry analysis
north America: 8.9 billion dollar industry
Canada: frozen desserts are 2.9
quince: 43% of Quebecers consume ice cream at least once a week, home to sellers of handmade artisan ice cream
ice cream market was shrinking
industry giants
unilever and nestle
industry trends
tubs and cartons
- 45% of ice cream sales are in tubs in North America
hard ice cream
- 66.5% of frozen desert purchase are in hard ice cream
quebec consumption
- higher than the rest of Canada , look for range
low cal/ high protein
- Canadians are interested in low calorie (17%) and 23% are interested in high protein
porter five forces
subs: high bc there are many alternatives , minimal switching costs,
new entrants: low to moderate as there are high barriers to entry
suppliers: low as canada ensures stable milk proces, partner with oatly
buyers: high as many options, low switching costs
rivalry: high as Canadian market is dominated by Unilever and nestle, market saturation, need r and d, need access to different ditsrubuton channels , slow industry growth
threats
steady decline of ice cream market since 1990s 9war on fat and sugar
giants in industry: unilever and nestle purchasing large shelf space
regulations like not being able to export ice cream (North American market)
if deciding to expand to the us market, could have issues with the milk supply
opportunities
products that are low calorie, low fat, glute free
ice cream bars
reduce gap between demand and production capacity
going into the us–> offers a lot of growth
new partnerships like what did they did with OATLY
new ice cream bar production line
- more distribution channels
strengths
diverse products
economies of scale
partnerships (partnered with Oatley)
physical presence
high quality
diverse distrubtuon channels
adopting to any issues and adopt to trends
worked with suppliers to develop new flavours so good relationships
four entrepneurs working together to achieve trust
disctiness between the brands
weaknesses
limited production effeicny (only 33%)
difficulty enter distribution channels (bc of nestle and unilever strong presence )–> they were focused on schools and flights instead of going into supermarkets
financial constraints
not using the amount of hours well
have to do tasks manually (hand packing)
resource based analysis
- financial : gross profit 2020 of 818725, increased since 2019
Human: wide range of talents and knowledge , entreprenuships , had trust
physical: factory , stores, freezer space
technolohcail: automated systems in factory
reputation: indvudal brands , getting certfiiatond
organizational: merger, different people had roles
business level
focused differeination bc of niche markets and brand identities
niche markets: high quality premium ice cream with unique flavours
brand identities: each brand has a strong identity to attract certain consumers
sixty different floured and more than 100 products in dif formats
integrated
for their costs have economies of scale, lower production and operational costs
price competitive
horitinzal diversification
brands for df markets and rnange
merger allows for economies of scope and synergies
co packing
geogprahicaol
primary markt is quebec
expanded to the rest of Canada
us has potential
vertical integration
forward vertical with retail spaces
managers distribution and retailing of products without third parties
direct access p consuemrs
have stores, boutiques, restaurant chain, schools, hospitals, flights
boutiques also operated as franchises (strategic alliance)–> generated more volume
uses outsourcing
merger and acquisition
all foru brand were facing issues with market reach and production costs
they all needed a production facility
merged allowed for eocnimes of scale and scope, expanding market ereach
they had similiar visions so easy to integrate
BUT THEY DIDNT COMPETE DIRECTLY WITH EACH OTHER–> preservation bc they could keep their individual brands
they wanted to get into distrubtuon channels that were very dominated
Lambert acquisition
added reputable brand to poritfioki and expanded offerings
gained knowledge, expertise and people for development of new products for all top glacier brands
sustainable;e
semi automated system reduces environment impact
reduced reliance on animal based ingredients
global
TG views us market as a place for growth
north america is dominated by nestle and unilever
demographic
health conscious customers
45% of Quebec consumers eat ice cream weekly
value chain analysis
finance: net profit
Human Resources: founded by entrepreneurs , combined expertise , had morin, lambert who would look at current trends and work with suppliers
info systems: customer base and data from all four companies
supply chain management: source ingredients from producers, reduce costs and ensures supply sustainability , direct relationships with their suppliers (they work together to develop new flavours), outsource
operatons: semi automaed, flexible produktion process achieves economies of scale, saves in costs, high quality an effeicny
distribution: many channels, limited freezer space
marketing: brand doffereination, niche customer, being in stores helps create visibility f
follow up: ot mention d
sources of competitive advantages
artisanal , organic and vegan
- niche, ehalth consumers
cost efficiency and Rockies of scale
- automation and efficiency production
product felixbiltu
- produces non dairy and dairy, seasonable, can adapt to changing preferences
comeootitve position
strong presence in the arysinal segment in quince
differeination through artinsal, health focused consumers
challenges
expansion beyond Quebec is limited bc of budgets, not using cap[acity
financial and logistical limitations
strategic focus for growth
explore partnerships or allainces
prioritize high margin prodict lines
better utilize production capacity by securing co packing contracts to host revenue and efficiecny
North American market
growth of 9.1 billion
shared by 400 companies but dominated by four
strongly influenced by the price of milk
tubs and cartons of ice cream sold by retail outlets were the most popular
growth of new flavours and products
not a lot of exports of ice cream
the Canadian market
2.9 billion
1.9% growth
shrinking though bc of the war on fat and sugar
saturated by unilever and nestle
lots of competition
milk prices remained stable
BRANDING IS CRITICAL bc its very competitive
innovation
products meeting health or dietary needs was very important to stand out
Quebec market
largest milk producer in canada
consumers eat ice cream at least once a week
like high quality and like a lot of options
bilboquet and solo fruit were well known
a new and bigger manufacturing facility
were going to join together in the essence factory as it was near highways
could achieve economies of scale and save on costs
semi automated production which resulted in cost savings
increased production capacity while having good quality
received awards
containers are the same (economies of scope)
procedures were standardized
halo top
us firm that made low fat ice cream offered to outsource part of its production to Tg
it didnt go over well in Quebec or canada –> assumed that if the us liked the product then Canada would too
it was competing with nestle and unilever so top glaciers thought they could have a way in to compete with them
OATLY
asked Tg to produce its oat milk ice cream, created a challenge bc of contamination
positive impact on suppliers
Tg signing deal with metro
gives shelf space
incresded production and more volume
margins ere very low in this niche and milk proces were very heavily regulated
how did it try and increase its production capacity
stepped up its co branding activities, partnered with the MTY food group and with chocolate favours
corporate strategy
vertical integration: have their factory , they outsource
forward integrated by being in stores, airplanes, dif distribution , provides growth , helps boost the company’s visibility
horizontal: economies of scope by having the labels being the same no matter the flavour
cooperative strategy
partnerships with halo and OATLY
