Strengths
- High demand for what BCL offers: Tetra Pak estimates a product capacity deficit of ~700M units.
- Value proposition that will appeal to large CPGs who need to reduce Scope 3 emissions to reach net zero targets.
- De-risked business plan: LOIs for ~30% of plant capacity.
- Highly experienced management team.
- Established distribution channels through Rethink
Weaknesses
- Current lack of financial resources to fund construction of the facility, and obtain the required machines and equipment.
- Better-For-You will face the same brand recognition issues that all startups encounter.
- Marketing budget is small when compared to competitors operating in the same space.
Opportunities
- All BCL divisions can capitalize on growing consumer demand for sustainability in their food and beverages.
- Bring sustainable beverage manufacturing from the fringe into the mainstream through distribution partnerships with blue-chip companies that need to hit net zero targets.
- Create partnerships with retailers whereby BCL co-packs for them, while they distribute its Better-For-You products.
Threats
- Compliance issues in F&B have the potential to create challenges for companies like BCL.
- Quality control-related challenges and approaches can cause different types of political and legal challenges.
- Companies’ exaggerated claims of sustainability threaten BCL’s value proposition, as many consumers won’t know the difference.
