Case Study

Change in strategy takes company from loss to growth

Client Profile

Beer Co.* is a medium-sized brewer of mid-market and craft beers. The brewery operates in several markets outside of its home country, including southern China and Taiwan. Beers include a mix of traditional and novel styles primarily targeting up-market consumers.

The Challenge

After enjoying early success in the Taiwan market, Beer Co. expanded into local markets in southern China. However, the company was losing money in Mainland China and market share in Taiwan. They approached Mersol & Luo because they needed a change in strategy to shift from loss to growth and profitability.

Our Approach

We assessed Beer Co.’s situation in both the Taiwan and Mainland market. Once the key problems for each market were identified, we developed a turnaround strategy for the company’s operations in these two markets. Our strategy experts guided them through the execution process, monitoring results and advising how to adapt as needed.

The Results

Working with Mersol & Luo, Beer Co. improved its distribution and customer targeting strategy in Mainland China, increasing sales by 300%, making local operations profitable, within a year and reducing inventory and spoilage. In Taiwan, the company’s branding was localized, better targeting consumers, in addition to improving support for on-trade and off-trade sales channels. Sales expanded by nearly 60%, boosting the company’s market share. The company retains us to monitor their progress and advise on how to adjust their approach to deliver sustainable growth.

Impact in 12 months

3x

Increase in sales value in China

Chinese
subsidiary achieves profitability

60%

Increase in sales in Taiwan

*We protect the confidentiality of our clients. Although the name has been changed, the results are real.