Interview Guides
NorthPeak Consumer Partners is a mid-market investment and operating firm evaluating a platform acquisition in beverage manufacturing. The team is comparing the brewing industry with other FMCG categories such as soft drinks, packaged snacks, and dairy. NorthPeak is considering acquiring Harbor Brew Co., a regional brewer with strong distribution in two states, and wants to determine whether brewing is structurally more attractive than adjacent FMCG sectors for the next 5-7 years.
Harbor Brew Co. generated $180M revenue last year, with 18% gross margin and 7% EBITDA margin. The company sells through supermarkets (45% of revenue), bars/restaurants (30%), convenience stores (15%), and direct-to-consumer taproom and events (10%). Management believes brewing offers stronger brand loyalty, premiumization potential, and route-to-market advantages than many other FMCG sectors, but the board is concerned about regulation, private-label pressure, and slowing beer volume growth.
You are advising NorthPeak's investment committee. The key question is not simply whether Harbor Brew is a good company, but whether the brewing industry is an attractive place to deploy capital relative to other FMCG sectors. The committee wants a clear view on industry economics, competitive dynamics, growth drivers, and what would make brewing more or less attractive than categories like carbonated soft drinks or packaged foods.
| Metric | Brewing | Soft Drinks | Packaged Snacks | Dairy |
|---|---|---|---|---|
| 5-year category CAGR | 4.2% | 5.1% | 4.8% | 2.3% |
| Avg. gross margin | 32% | 39% | 35% | 24% |
| Avg. EBITDA margin | 14% | 19% | 16% | 8% |
| Top-4 player market share | 68% | 74% | 61% | 43% |
| Private-label share | 6% | 4% | 18% | 22% |
Additional data points:
