Food & Drink - Frozen Food Manufacturer

This solution could work for you if you...

  • Have capital tied up in slow moving or obsolete assets/products/stocks
  • Want to restore value to the business
  • Are looking to increment UK Marketing budgets

 

The Challenge

A frozen food manufacturer in the process of updating its production line wanted to maximise the value they achieved from the sale of their obsolete machinery.

 

Our Solution

  1. Active worked with the frozen food manufacturer to develop a dealer promotion
  2. Active established the value of the machinery via the manufacturer’s current disposal route
  3. Active agreed to purchase the machinery in exchange for a higher ratio of Trade Credits
  4. The machinery was sold using the manufacturer’s established disposal route
  5. The frozen food manufacturer used the Trade Credits to increase their media budget part funding TV, sponsorship, publishing and outdoor activity
  6. The client received greater value in media than selling the machinery directly would have generated in cash
  7. Active has subsequently purchased further machinery from the client

 

The Benefits

  • Client - Received higher value in Trade Credits for their obsolete machinery than if they had sold the machinery for cash. The value was realised on spending the Trade Credits as part payment for media
  • Media Owner received increased media spend from the client
  • Active International made profit from the sale of the machinery and trading the media campaign

 

If you'd like to find out more about Corporate Trade, get in touch with John Charlesworth, our Director of Client Relations email or phone 020 7520 6666