Natureview Case Analysis
Natureview Farm Case Analysis – 5 November 2013
Natureview Farm is the leading manufacturer of refrigerated cup yogurt in the natural foods channel. From its founding in 1989 through 1999, Natureview grew its revenues from less than $100,000 to over $13M by selling only 8oz and 32oz yogurt cups. However, in 1997, in order to fund strategic investments, Natureview received an equity infusion from a venture capital firm, which needs to cash out of its investment, forcing Natureview to either find a new investor or position itself for acquisition. In either case, growth is needed, and revenues need to be increased from $13M to $20M by the end of 2001. The question is how. As such, the core problem facing Natureview is whether or not to expand beyond the natural foods stores channel and into the supermarket channel and how such a decision will impact its supply chain operations. One alternative to consider is to introduce two new 4oz multi-pack SKUs into the natural foods channel. Natureview’s strength lies in its reputation for providing a high quality product with only natural ingredients. It is the channel and market leader in the natural food market with 24% market share and strong relationships with leading natural food retailers. Natureview is currently producing 12 yogurt flavors in 8oz cups and four flavors in 32oz cups, and with a shelf life of 50 days, has an advantage over its competitors, whose product only has a shelf life of 30 days.
Natureview has always emphasized natural ingredients and has built a reputation on the basis of high quality and great taste. This strong reputation has helped the company grow to a nationally distributed product and become a leader in the natural foods channel, building strong relationships with leading natural foods retailers, such as Whole Foods and Wild Oats. By introducing new product into the natural foods channel, Natureview does not risk damaging these relationships. Furthermore, the sales team
Natureview Farm is the leading manufacturer of refrigerated cup yogurt in the natural foods channel. From its founding in 1989 through 1999, Natureview grew its revenues from less than $100,000 to over $13M by selling only 8oz and 32oz yogurt cups. However, in 1997, in order to fund strategic investments, Natureview received an equity infusion from a venture capital firm, which needs to cash out of its investment, forcing Natureview to either find a new investor or position itself for acquisition. In either case, growth is needed, and revenues need to be increased from $13M to $20M by the end of 2001. The question is how. As such, the core problem facing Natureview is whether or not to expand beyond the natural foods stores channel and into the supermarket channel and how such a decision will impact its supply chain operations. One alternative to consider is to introduce two new 4oz multi-pack SKUs into the natural foods channel. Natureview’s strength lies in its reputation for providing a high quality product with only natural ingredients. It is the channel and market leader in the natural food market with 24% market share and strong relationships with leading natural food retailers. Natureview is currently producing 12 yogurt flavors in 8oz cups and four flavors in 32oz cups, and with a shelf life of 50 days, has an advantage over its competitors, whose product only has a shelf life of 30 days.
Natureview has always emphasized natural ingredients and has built a reputation on the basis of high quality and great taste. This strong reputation has helped the company grow to a nationally distributed product and become a leader in the natural foods channel, building strong relationships with leading natural foods retailers, such as Whole Foods and Wild Oats. By introducing new product into the natural foods channel, Natureview does not risk damaging these relationships. Furthermore, the sales team