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Success Story
Logistics: Investment Opportunities in Liquor Logistics Market
Impact
3
Proof-of-Concept deals inked with leading key luxury retailers in the US and Germany
0%
Increase in customer base by identifying two new customer segments within the premium alcohol market
5
High-funded startups ((with 25% y-o-y revenue growth) marked for potential acquisition discussions
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Client
Leading Logistics Player
Products
Logistics
Industries
BWS (Beer, Wine, & Spirits)
target geo
North America, Europe
business objective
Identify potential investment opportunities for a new logistics service aimed at the premium BWS (Beer, Wine, & Spirits) market
Context
Our client, a leading global logistics player, wanted to evaluate the North American and European market for a new service aimed at the BWS (Beer, Wine, & Spirits) market. The service supports lower volumes, hyper personalization and offers greater agility / flexibility than the standard delivery service.
Competitors (3PL and 4PL Logistics players) had begun adopting advanced white-glove delivery services for their premium customers at an accelerating pace and this shift was evident through key industry developments:
1.Rise in the demand for super-premium alcoholic beverages in North American and Europe due to increased spending power post-pandemic
2.Increase in the adoption of robotics and automation for advanced tracking systems, temperature control technologies, automated inventory management and enhanced packaging solutions
Against this backdrop, the client wanted to capture this niche market by studying the viability of offering a uniquely flexible service model for the BWS segment, understand how competitors are managing their customers’ mass and premium inventory, which geographies can this new service be tested/launched, and finally, which SMEs in this space can be potential targets for acquisition.
Our solution
Cognition executed the project using our three comprehensive research modules:
1.Market Intelligence: Critically assessed the white-glove delivery market according to the product (Beer, Wine, & Spirits), its geography (NA, EU), its service type (B2B, B2C, and Last-mile), and its potential client categories (Luxury establishments, retailers and boutique stores, and event organizers and caterers).
2.Competitor Intelligence: Analyzed the competitors’ financial performance and its service portfolio in terms of premium inventory management, customs and excise expertise, wet and dry bonded facilities, breakbulk options, multi-modal services, warehouse approvals, cargo security features and licenses and certificates.
3.Investment Due Diligence: Comprehensive assessment of the innovative startups in the BWS logistics space in terms of their financial and operational performance and their use of advanced tech like Advanced Tracking Systems and RPA (Robotic Process Automation) in warehouses for premium alcohol logistics.
Our Methodology
Secondary Research (Human + Artificial Intelligence)
- Data Mining: Orchestration of searches through public and commercial sources of information to find critical information on the market landscape, competition, and customer categories.
- Insights Tracking and Monitoring: Used AI tools with advanced search and monitoring capabilities for tracking competitors, startups, funding activities, and key tech launches in the BWS logistics space.
- Human Expertise: Our team of market analysts reviewed the AI-generated insights by using their logistics sector-specific knowledge and strategic thinking, and validated and contextualized the information, ensuring its relevance and accuracy.
Primary Research (Expert Consultations): To gather key insights on premium alcoholic inventory management, we conducted expert consultations with four Logistics Coordinators and six Supply Chain Managers. This was achieved through a combination of our existing expert panel network and by leveraging professional social media platforms to reach new experts.
Outcome
- The client was able to launch its white-glove delivery service and ink three Proof-of-Concept deals with leading key luxury retailers in the US and Germany
- Increased the client’s customer base by 20% by identifying two new customer segments within the premium alcohol market
- By working with Cognition, the client was able to initiate discussions with five high-funded startups (with 25% y-o-y revenue growth) for potential acquisition
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