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Natureview Farm

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Natureview Farm
Founded in 1989, Natureview Farm is the leading manufacturer of refrigerated cup yogurt in the natural foods channel with 24% market share. In the last 10 years, Natureview was able to grow its revenues from less than $100,000 to $13 million in 1999 by selling only 8 Oz and 32 Oz cups. In 1997 an equity infusion from a venture capital firm was needed in order to fund strategic investments. The deal was arranged and completed by Natureview’s CFO, Mr. Wagner. However the VC firm now needed to cash out of its investment, which forces Natureview to find another investor or position itself for acquisition. In order to achieve this though strategic and important goal the company needs to increase its revenues by more than 50%, from $ 13 Mio. to $ 20 Mio., by the end of 2001. For this reason, members of the management team have decided that the best way to achieve the revenue goal is either to expand into the supermarket channel or to increase their product line in the current channel of natural foods stores. Three options are being considered, two of which involve the supermarket channel and one remaining solely in the natural foods channel. Uncertainties exist with all options and many questions arose, such as how will natural foods stores and Naturview long-time partners react when placing the brand into supermarkets? Would natural foods stores replace Naturviews’ products with competitors’ lines? What potential conflicts could arise? Etc. There are many more important questions to be answered and therefore the final decision has to be made very carefully. In order to summarize and to better understand the overall situation of Natureview Farm, a short SWOT-analysis would be helpful. Natureviews’ strength: Natureview is the channel- and market leader in the natural food market with 24% market share Natureview is using only natural ingredients and is known

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