**Italy**: A family-owned Italian company with over 125 years of heritage is expanding into the functional soft beverages market, aided by RSM Global. The partnership focuses on securing funding, enhancing R&D capabilities, and navigating tax credit schemes to foster growth and international market presence.
A family-owned company in Italy with a rich legacy spanning over 125 years is making strides in the alcohol and spirits industry while also looking to expand into the functional soft beverages market. This effort is part of a broader push to enhance its international market presence. The company, which produces liqueurs and spirits and engages in the bottling of denatured alcohol, has sought assistance from RSM Global to secure vital financing and government incentives as it maps out its operational strategy and resource management plan.
In their collaborative pursuit, the objectives established by RSM include securing funding for new product development and facilitation of internationalisation. Furthermore, RSM aimed to set up processes to identify and navigate tax credit schemes and public funding opportunities that would bolster the client’s research and development activities. A key target included achieving new validated products and driving company growth through increased turnover and market size.
Taking a structured approach, RSM facilitated a strategic partnership between the Italian company and the pharmaceutical department of a prominent university. This initiative aimed to create a synergy between academia and industry, thereby leveraging academic expertise alongside industry knowledge to foster significant growth and technological advancement.
RSM also focused on navigating the landscape of applicable tax credits and public provisions, particularly those linked to research and development, digital integration, and overall business expansion. Their alignment of the client’s ongoing projects with eligible tax credit schemes allowed RSM to actively engage in the preparation and submission of necessary documentation for credit claims and grant applications.
In terms of product development, RSM played a pivotal role in assisting the client with various R&D projects that led to the creation and validation of six new lines of functional soft beverages, which are expected to open doors to international markets. Additionally, the firm secured funding for the client to participate in international trade fairs, which are crucial for elevating brand exposure globally.
The enhancement of in-house research capabilities was realised through the overhaul of the company’s lab, establishing a state-of-the-art 4.0 chemical lab that enables the client to conduct R&D on demand for external companies. To address evolving market dynamics, RSM supported the digital integration initiatives by facilitating training programmes and implementing advanced software solutions, ultimately aiding the client’s capacity to innovate and enter new markets proactively.
However, the journey has not been without challenges, particularly concerning unsuccessful product developments that resulted in certain offerings failing to meet market criteria due to inferior taste. To mitigate the financial ramifications of these setbacks, RSM implemented a robust R&D tax credit system, significantly offsetting the losses associated with failed initiatives. Additionally, expanding into the functional beverage sector introduced complexities as the company needed to develop expertise in a new product category, prompting adjustments in production processes.
The effectiveness of RSM’s intervention is measurable across several metrics: notably, more than €1,000,000 was secured in co-financing across three primary projects, directly facilitating the client’s foray into the functional beverages market and enhancing its international visibility. Successful applications for approximately €400,000 in R&D tax credits over six years have been realised, supporting essential initiatives in digital transformation and product development.
A new revenue stream was established for the client through securing funding to enhance its in-house research lab, allowing it to offer on-demand R&D services to other beverage brands, thereby creating a supplementary income source. Product launches, particularly the newly developed functional beverages, have positioned the company to better capitalise on shifting consumer preferences, further enriching its revenue base and appeal on the international stage.
In summary, RSM Global’s targeted financial advisory services have successfully facilitated the Italian client’s transformation, leveraging its extensive heritage while simultaneously embracing new opportunities in a competitive global marketplace. Through strategic financial planning, adept utilisation of tax credits, and methodical project implementation, the company has not only navigated the challenges posed by the Covid-19 pandemic but has emerged with enhanced research capabilities, a diversified product portfolio, and improved operational efficiency.
Source: Noah Wire Services
