9. Development and roll-out of snack foods. Fabi- enne Morin suggested
that the company use the excess capacity at its Antwerp spice- and
nut-processing facil- ity to produce a line of dried fruits to be
test-marketed in Belgium, Britain, and the Netherlands. She noted the
strength of the Rolly brand in those countries and the success of other
food and beverage companies that had expanded into snack-food
production. She argued that Pan-Europa’s reputation for wholesome,
quality prod- ucts would be enhanced by a line of dried fruits and that
name association with the new product would probably even lead to
increased sales of the company’s other prod- ucts among health-conscious
consumers.
that the company use the excess capacity at its Antwerp spice- and
nut-processing facil- ity to produce a line of dried fruits to be
test-marketed in Belgium, Britain, and the Netherlands. She noted the
strength of the Rolly brand in those countries and the success of other
food and beverage companies that had expanded into snack-food
production. She argued that Pan-Europa’s reputation for wholesome,
quality prod- ucts would be enhanced by a line of dried fruits and that
name association with the new product would probably even lead to
increased sales of the company’s other prod- ucts among health-conscious
consumers.
Equipment and working-capital investments were ex- pected to
total €15 million and €3 million, respectively, for this project. The
equipment would be depreciated over seven years. Assuming the test
market was success- ful, cash flows from the project would be able to
support further plant expansions in other strategic locations. The IRR
was expected to be 20.5 percent, well above the re- quired return of 12
percent for new-product projects.
total €15 million and €3 million, respectively, for this project. The
equipment would be depreciated over seven years. Assuming the test
market was success- ful, cash flows from the project would be able to
support further plant expansions in other strategic locations. The IRR
was expected to be 20.5 percent, well above the re- quired return of 12
percent for new-product projects.
9. Development and roll-out of snack foods. Fabi- enne Morin suggested
that the company use the excess capacity at its Antwerp spice- and
nut-processing facil- ity to produce a line of dried fruits to be
test-marketed in Belgium, Britain, and the Netherlands. She noted the
strength of the Rolly brand in those countries and the success of other
food and beverage companies that had expanded into snack-food
production. She argued that Pan-Europa’s reputation for wholesome,
quality prod- ucts would be enhanced by a line of dried fruits and that
name association with the new product would probably even lead to
increased sales of the company’s other prod- ucts among health-conscious
consumers.
that the company use the excess capacity at its Antwerp spice- and
nut-processing facil- ity to produce a line of dried fruits to be
test-marketed in Belgium, Britain, and the Netherlands. She noted the
strength of the Rolly brand in those countries and the success of other
food and beverage companies that had expanded into snack-food
production. She argued that Pan-Europa’s reputation for wholesome,
quality prod- ucts would be enhanced by a line of dried fruits and that
name association with the new product would probably even lead to
increased sales of the company’s other prod- ucts among health-conscious
consumers.
Equipment and working-capital investments were ex- pected to
total €15 million and €3 million, respectively, for this project. The
equipment would be depreciated over seven years. Assuming the test
market was success- ful, cash flows from the project would be able to
support further plant expansions in other strategic locations. The IRR
was expected to be 20.5 percent, well above the re- quired return of 12
percent for new-product projects.
total €15 million and €3 million, respectively, for this project. The
equipment would be depreciated over seven years. Assuming the test
market was success- ful, cash flows from the project would be able to
support further plant expansions in other strategic locations. The IRR
was expected to be 20.5 percent, well above the re- quired return of 12
percent for new-product projects.
Why should Pan-Europa Foods invest in your project
proposal? (Note: discuss profit and non-profit
benefits)
proposal? (Note: discuss profit and non-profit
benefits)
