Leading food & beverage provider expanded through strategic investments.


Quality Foods & Beverages is a leading food and beverage distributor based in Brisbane, servicing schools, restaurants, independent retailers, and more across South East Queensland. Fortitude first invested in February 2017 under a buy-and-build strategy, with additional investment in June 2018 for future growth initiatives.

Our results

Since our initial investment, Quality Foods & Beverages has seen continued growth and strong cash generation. As part of the M&A strategy, 12 acquisitions have been made, alongside investments in a new state-of-the-art warehouses, modern fleets, and operational technology.

20%

COMPOUND ANNUAL GROWTH RATE REVENUE GROWTH

$132m

FY22F, UP FROM $64M IN FY17

$25m

IN REVENUE TARGETS IDENTIFIED OVER NEXT 5 YEARS

CHALLENGES OVERCAME

  • Managing the transition into a more expansion-focused strategy within a fragmented market that favours consolidation by mid-market providers

  • Working with significant economies of scale, with 40% of operating costs fixed at the time of investment.

  • Overseeing multiple acquisitions while maintaining business stability and growth.

  • Attracting and integrating high-calibre management talent into the existing team, including a CFO, Non-Executive Director and financial controller.

  • Successfully transitioning operations into a new state-of-the-art warehouse while maintaining operational efficiency.

 

Investment reaso

ning

An opportunity arose to execute a buy-and-build strategy in the fragmented food and beverage distribution sector in South East Queensland. Quality Foods & Beverages presented a viable investment offering a well-established distribution network in Brisbane and surrounds, substantial economies of scale, and a proven and aligned senior management team.

 
 
 

PROACTIVE ACQUISITION & GROWTH STRATEGY

With 12 acquisitions made since 2017, Quality Food & Beverages demonstrated a proactive approach to expansion, targeting an additional $25m in revenue over the next five years. In this time, revenue saw a 20% Compound Annual Growth Rate (CAGR).

 
 

INVESTMENT IN INFRASTRUCTURE AND TECHNOLOGY

Substantial investment was made in a new state-of-the-art warehouse and a modern fleet, along with continual investment in technology, improving operational efficiency and capability.

 
 
 

ALLIED & EXPANDING SENIOR MANAGEMENT TEAM

Recognising the need for strategic oversight, Quality Food & Beverages had an experienced senior management staff ready to make improvements. This included investing in new roles, such as a CFO (now COO) and a new financial controller (now Head of Finance).

 
 

CONTINUED GROWTH AND CASH GENERATION

Despite the changes and expansion, Quality Food & Beverages maintained strong growth and cash generation, underlining its strategic approach and operational efficiency as a leading distributor in South East Queensland (SEQ) and Northern NSW.