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Strengthening organic food distributor’s supply chain to drive expansion with tailored SCF
CLIENT OVERVIEW
A leading organic food and beverage distributor headquartered in Portland, Oregon, had built a reputation for delivering high-quality, sustainably sourced produce to retailers and co-ops throughout the Pacific Northwest. In 2024, the company exceeded $100 million in annual revenue, driven by increased consumer demand for healthy, local, and organic food options. However, despite this success, the business faced mounting operational pressures that threatened to derail its aggressive growth trajectory for 2025.
To meet ambitious revenue goals, the distributor needed a financing solution that would allow them to strengthen their relationships with local farmers, mitigate supply chain disruptions, and expand their customer base into the restaurant and hospitality sectors.
THE CHALLENGE
Unpredictable weather patterns in Oregon, including prolonged spring rains and mid-season droughts, created a volatile growing environment for organic farmers. Delays in planting, impaired crop development, and fewer workable field days disrupted production across the state. Labor shortages during peak harvest times further strained operations, leaving many small and mid-sized farms unable to meet rising demand. As a result, the distributor struggled with unreliable supply volumes, missed delivery schedules, and limited ability to secure new customer contracts, stalling its expansion plans.
Financial pressures mounted as the distributor also needed to invest in growing its sales team to compete in the restaurant and institutional food service market.
THE SOLUTION
Recognizing the urgent need for strategic funding, the distributor partnered with eCapital, a specialist in supply chain and working capital financing. Within days of engagement, eCapital deployed a dedicated team of financing experts to assess the distributor’s operations, supply chain relationships, and sales structure.
After a thorough evaluation, eCapital delivered a tailored supply chain financing facility.
Key Actions Taken:
- Custom Financing Structure: eCapital implemented a supply chain financing facility tailored specifically to the seasonal nature and cash flow cycles of organic farming.
- Rapid Deployment: Within weeks, the facility was in place—providing immediate liquidity to reinforce the distributor’s payment capabilities to farmers and suppliers.
- Supplier Support: The financing allowed the distributor to offer advanced payments and more predictable cash flow to its network of growers, giving them access to capital for inputs, labor, and irrigation upgrades.
- Sales Expansion: With core supply chain stability restored, the distributor was able to confidently invest in its sales team and execute a targeted push into the regional restaurant market.
THE RESULTS
With eCapital’s supply chain financing facility in place, the distributor successfully overcame its midstream operational bottlenecks and hit critical growth milestones.
Outcomes Included:
- Stabilized Supply Chain: Organic producers had the resources and financial confidence to invest in production and prepare for challenges, improving delivery consistency and quality.
- Expanded Market Reach: A larger, better-equipped sales force secured contracts with restaurant chains and farm-to-table establishments, unlocking a new high-margin revenue stream.
- Improved Cash Flow Management: The distributor avoided taking on long-term debt while gaining better predictability over its working capital needs.
With its financial footing reinforced and a stronger, more reliable supplier base, the distributor is now positioned to expand into additional markets and explore new product lines, including organic prepared foods and specialty beverages.
The partnership with eCapital has laid the groundwork for scalable, sustainable growth in a rapidly evolving organic food market.
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