top glaciers

Question 1

who forms top glaciers

Answer 1

solo fruit, bilvioquet, essence galcer, Hudson and Lambert

Question 2

goal of merger

Answer 2

post 10 million in sales in the first year and average 20% annual growth over the next 3 years

Question 3

issue

Answer 3

only producinbg 10,000 l daily–> 33% capacity
struggling to penetrate the major distribution networks of supermarkets and compete with major chains

Question 4

political legal

Answer 4

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

Question 5

economics

Answer 5

not a commodity
unlikely to have large sales in economic downturn
caandas ice cream market is valued at 2.9 billion with 1.9% annual growth

Question 6

technological

Answer 6

new tech in factory machinery and automation processes for production efficency
semi automated production facility
50% decrease in container costs

Question 7

sociocultural

Answer 7

changing health and lifestyle trends
high protein vs low protein

Question 8

industry analysis

Answer 8

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

Question 9

industry giants

Answer 9

unilever and nestle

Question 10

industry trends

Answer 10

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

Question 11

porter five forces

Answer 11

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

Question 12

threats

Answer 12

steady decline of ice cream market since 1990s 9war on fat and sugar
giants in industry: unilever and nestle purchasing large shelf space

Question 13

opportunities

Answer 13

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

Question 14

strengths

Answer 14

diverse products
economies of scale
partnerships (partnered with Oatley)
physical presence
high quality
diverse distrubtuon channels

Question 15

weaknesses

Answer 15

limited production effeicny (only 33%)
difficulty enter distribution channels (bc of nestle and unilever strong presence )
financial constraints

Question 16

resource based analysis

Answer 16

1. financial : gross profit 2020 of 818725
   Human: wide range of talents and knowledge
   physical: factory
   technolohcail: automated systems in factory
   reputation: indvudal brands
   organizational: merger increased knowledge and efficiency

Question 17

business level

Answer 17

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

Question 18

integrated

Answer 18

for their costs have economies of scale, lower production and operational costs
price competitive

Question 19

horitinzal diversification

Answer 19

brands for df markets and rnange
merger allows for economies of scope and synergies
co packing

Question 20

geogprahicaol

Answer 20

primary markt is quebec
expanded to the rest of Canada
us has potential

Question 21

vertical diversification

Answer 21

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

Question 22

merger and acquisition

Answer 22

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

Question 23

Lambert acquisition

Answer 23

added reputable brand to poritfioki and expanded offerings
gained knowledge, expertise and people for development of new products for all top glacier brands

Question 24

sustainable;e

Answer 24

semi automated system reduces environment impact
reduced reliance on animal based ingredients

Question 25

global

Answer 25

TG views us market as a place for growth
north america is dominated by nestle and unilever

Question 26

demographic

Answer 26

health conscious customers
45% of Quebec consumers eat ice cream weekly

Question 27

value chain analysis

Answer 27

finance: net profit
Human Resources: founded by entrepreneurs , combined expertise
info systems: customer base and data from all four companies
supply chain management: source ingredients from producers, reduce costs and ensures supply sustainability
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
follow up: ot mention d

Question 28

sources of competitive advantages

Answer 28

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

Question 29

comeootitve position

Answer 29

strong presence in the arysinal segment in quince
differeination through artinsal, health focused consumers

Question 30

challenges

Answer 30

expansion beyond Quebec is limited bc of budgets, not using cap[acity
financial and logistical limitations

Question 31

strategic focus for growth

Answer 31

explore partnerships or allainces
prioritize high margin prodict lines
better utilize production capacity by securing co packing contracts to host revenue and efficiecny

Question 32

North American market

Answer 32

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
growth of new flavours and products
not a lot of exports of ice cream

Question 33

the Canadian market

Answer 33

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

Question 34

Quebec market

Answer 34

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

Question 35

a new and bigger manufacturing facility

Answer 35

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

Question 36

halo top

Answer 36

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

Question 37

OATLY

Answer 37

asked Tg to produce its oat milk ice cream, created a challenge bc of contamination
positive impact on suppliers

Question 38

Tg signing deal with metro

Answer 38

gives shelf space
incresded production and more volume
margins ere very low in this niche

Question 39

how did it try and increase its production capacity

Answer 39

stepped up its co branding activities, partnered with the MTY food group and with chocolate favours