Repositioning a dairy

A dairy, with a national reputation for quality, was facing 30% reduction of revenue inside of six months.

The dairy retailed its products solely through its own chain of retail convenience stores. Large grocery chains had opted to sell milk at cost to attract customers.  The dairy stores were ill positioned to respond.  Management had opted to begin a restaurant chain as an alternative business, and this was now mired in losses.

We divested the firm of the restaurants, and refocused the business on its core issues.  Their key products were repackaged into upscale products and new distribution channels were opened up, selling the repackaged products as upscale alternatives to other brands.  This was well accepted among specialty grocery stores and high end restaurants.

Competitors were unable to replicate packaging or regional name recognition allowing the dairy higher retail pricing and margins. Fourteen months after a careful rollout campaign, the company revenues and margins were substantially restored.