Natureview Farm Case Study

Natureview Farm is a yogurt manufacturing company who has recently been struggling to preserve a persistent level of profitability. Venture capitalist who have taken part in an equity infusion with the company now desire to cash out of their investments, leaving Natureview Farm with no sources of funding. The company is currently attempting to uncover how to achieve the highest possible valuation by potential investors to avoid the risk of having to arrange for acquisition or find a new investor. The problem is that the they hav to increase revenues from their current $13 million to $20 million by the end of the 2001 fiscal year and decide whether or not they should expand into the supermarket channel to meet this goal. In order to raise revenues

The one-of-a-kind delightful, smooth and creamy texture and flavor of their yoghurt is the result of a cherished family recipe developed by the founder of the brand. Natureview takes pride in its longheld belief to use all natural ingredients and a unique process that gives its yogurt the effortless smooth texture without the use of artificial thickeners. The company creates its yoghurt with milk from only untreated cows who have not been given artificial growth hormones like rBGH. This exclusive process allows the yoghurt to stay fresh for 50 days unlike competitors, whose shelf life is 30 days. Over the duration of 10 years, Natureview Farm has grown revenues from $100 000 to $13 million, illustrating the prosperity of the

The yogurt industry obtains tremendous earnings. In 1999, total U.S retail sales of refrigerated yogurt peaked at $1.8 billion. Coincidingly, the total sales volume was over 2.3 billion units. From 1994 to 1999, yogurt sales through supermarkets had grown at an average rate of 3% per year, indicating continuous growth for the future. Likewise, yogurt sales through natural food stores had grown at an average rate of 20% per year. Yogurt is a delicacy that Americans have shown to enjoy, as it was consumed by about 40% of the U.S. population, with 70% of those individuals identifying themselves as female purchasers. Moreover, the market is very concentrated within both supermarket and natural food stores. The top four competitors in the supermarket industry are Dannon, Yoplait, Breyers, and Columbo, with Danone and Yoplait possessing 57% of the market, as of 1999. Likewise, the top competitors of the natural food industry are Natureview Farm, Brown Cow, Horizon Organic, and White Wave, with Natureview Farm, Brown Cow, and Horizon Organic possessing 58% of the market, as of 1999. External factors notably contribute to the formation of the action plan, by providing fundamental knowledge about the