FIRST ALVERSTONE PARTNERS

The restructuring of SunMoon Food Company Limited (SunMoon) and the consolidation of its competitive edge have made it viable on a global scale, which has attracted institutions and strategic business partners

Description

Listed on the SGX Mainboard, SunMoon is a global player in the fresh fruits and dehydrated products businesses.  It sells its fruits under the world-renowned SunMoon brand, with distribution network spanning over four continents and more than 10 countries.  As part of its ambitious expansion plans, SunMoon has ventured into the planatation business and owns about 15 plantations, totally over 17,000 mou.  It however lost focus on its core cash generating abilities, and ineffectively allocated resources in its various businesses, resulting in a degenerated operations and adverse cashflow situation.

Results

• FAGP believes that the current business model does not optimize SunMoon's core strengths, which is its brand equity and distribution network;
  
  
• First Alverstone Partners focused on improving the business model to optimize SunMoon's core strengths, its brand equity and distribution network;
  
  
• First Alverstone Partners ensured focus and resources are channeled into each core focus area and prevented each of the business performance to affect any other business;
  
  
• SunMoon has undertaken the following measures under the guidance of First Alverstone Partners:
  
  • Consolidated and built on its SunMoon brand;
    
  • Strengthened and expanded its sales and distribution network;
    
  • Strengthened its fruits procurement capabilities through working with new like-minded strategic partners;
    
  • Moved into higher margin dehydrated products; and
    
  • Embarked on plans to discontinue its loss-making plantation business.
    
• First Alverstone Partners then put in place a new management team to lead SunMoon back to the summit of the fruits business. The new management team, headed by a veteran with 29 years of experience in the food industry, then built an experienced core management and operations team in SunMoon. First Alverstone Partners assisted the management in the operations and the strategic business directon of SunMoon.