Problem Statement
The business had credible consumer loyalty but was hindered by:
- Inefficient supply chain model with rising input costs
- Inadequate digital distribution and marketing capabilities
- Low-margin SKUs and poor retail channel prioritization
- Lack of institutional capital and commercial strategy
Despite its brand equity, the company was unable to evolve with modern retail trends and faced a steady decline in EBITDA margins.
Approach & Process
Capeon entered as an anchor investor and board-level partner, executing a turnaround strategy across capital structuring, operational efficiency, and brand-led growth:
- Strategic capital deployment via a structured equity model
- SKU rationalization and retail channel optimization to focus on high-margin segments
- Supply chain redesign through nearshoring to Mexico, reducing COGS by ~12%
- Leadership augmentation: Appointed a new CFO and embedded marketing leadership from Capeon
- Full-scale digital marketing revamp: Amazon, Shopify, and performance-led media campaigns
- Activated national retail partnerships and led in-store brand refresh rollout
- Syndication support: Mobilized U.S.-based family office co-investors from Capeon’s network
Impact
Over a 15-month post-investment period:
2.7x EBITDA growth
Gross margin improved by 380 bps
Digital sales channel grew from <10% to ~34% of total revenue
Significant uplift in brand recall via data-driven targeting and segmentation
Secured 2 new national retail distribution partnerships
Positioned as a top acquisition candidate for consumer-focused PE platforms
Capeon continues to provide capital planning support and oversees brand and digital strategy through a retained marketing office.