Our client was interested in penetrating a new beverage format with its proprietary ingredient technology. The beverage industry was adjacent to the client’s core business so it turned to Bush Consulting Group for clarity on whether this technology created a viable value proposition and insight into how to enter the market.  

The critical insights revealed by Bush Consulting Group indicated the new ingredient could improve flavor incrementally, but margin improvements for customers were insubstantial and did not outweigh added handling complexities. As a result of evaluating the product's value chain economics in detail, our team did identify a packaging component which drove substantial value and could benefit from other client capabilities.  

Based on Bush Consulting Group’s findings, the client shifted its focus to ingredient opportunities in other markets better aligned to the value proposition. The client also initiated product development activities within a separate business unit to target the identified packaging opportunity.