Newsletter Late Summer 2012 Issue
ENRECO, Inc. – Sold!
Since 2005, we developed a close
working relationship with a small
company, ENRECO, Inc., and helped
it to grow to the point where it was sold
to a larger company at very good terms.
We hate to lose a good client but, as our
compaon was to help our client
grow and prosper,we ny missiview this as a success. When the company was sold, its sales,
product quality and (more importantly) profitability defined it as a market leader.
Here are three key ways that we helped the company prosper:
Marketing: BEST VANTAGE Inc. redesigned its brand image and fine-tuned a
message that resonated the company’s owner values: Nutritional Ingredients –
Trusted Source! The company’s main ingredient, flaxseed, offered a nutritional narrative
that required a technical sales component. BEST VANTAGE designed promotional
literature that differentiated the technical excellence of its ingredients from that of others
and conveyed the company’s command of the technical and nutritional values of its
ingredients (omega-3s, whole grain positioning). ENRECO took an industry leadership
position in promoting the importance of food safety and quality of grains. We published
technical papers and developed presentations that established the company as a
leader in its field. All this helped to differentiate the higher value of ENRECO’s products
from those of its competitors. Most importantly, higher value translated into higher
prices and improved profitability.
Technology: We helped the company create and validate new ingredient
technologies, including a cost-effective whole grain-pasteurization technology
customized to ENRECO’s processing configurations. This further helped to
differentiate the company’ higher value ingredients. Then we implemented an active,
ongoing technical service program to help customers realize the advantages of
ENRECO’s ingredients in their specific product applications.
Financial Modeling: Helping ENRECO to control costs and pricing was a core
strategic objective from day one. We worked closely with the company to help
streamline operating costs and develop a strategic pricing model that allowed the
company compete directly against its competitors’ margins…or walk away from
money-losing prospects. The cost-model allowed ENRECO to accurately pinpoint
the impact of each sales contract on the company’s profitability, accommodating
shifting variable overhead and inventory costs.
So, while we are always sorry to lose a client to M&A activity, we cheer its continued success
under new ownership and management!
© 2012 to BEST VANTAGE Inc.