Resetting the economics of a food importer and distributor for sustainable growth

Portside spent a decade building one of the region’s leading food import and distribution businesses. Growth picked up speed in recent years, but industry realities caught up. Margins were thin. Working capital needs were heavy. The company had already taken on significant debt. Management slowed expansion because the capital base could not safely support the pace.

1. Identifying margin opportunities

We benchmarked Portside against comparable importers and distributors in North America, Europe, and Asia. The review showed clear room to widen gross margin without changing the core model. Private label had strong potential in categories with low brand strength and high buyer churn. Pricing was largely uniform by channel even though channel profitability varied. Sales incentives pushed revenue, not contribution.

2. Redesigning the commercial model

We helped design a private label line where Portside already had sourcing scale and quality control. We rebuilt price architecture by channel, account size, and service level so it matched true unit economics. We redesigned the sales incentive plan so teams earn more when they grow gross profit, not just top line. Targets now account for mix, returns, and cost to serve, so day-to-day choices translate into margin.

3. Capital structure reset

In parallel, we mapped the balance sheet and the full debt stack. A large share of borrowing sat in short-term, high-cost facilities that created constant refinancing risk. We prepared a lender-ready growth story that tied operating improvements to a credible financial plan. The package included a clean three-statement model and forecast, and a data room with supplier contracts, customer cohorts, and inventory turns.

We are engaging credit providers on behalf of Portside to refinance expensive short-term debt into a more stable mix of term loans and working capital lines. The objective is to lower the blended cost of capital and lengthen tenor so management can plan growth without month-to-month rollover pressure.

4. Early results and path forward

The first private label SKUs are in pilot with key accounts. The new price architecture is live in two priority channels, with the rest scheduled for the next planning cycle. Sales leaders have adopted the updated incentive plan and now manage to gross profit targets at the customer level.

On financing, we are in the process of engaging lenders on the opportunity. Portside can show how margin actions, mix shifts, and disciplined pricing drive stronger cash generation and lower leverage over time.

Portside remains the same company that won the past decade through service and hustle. The difference is that the economics now match the ambition. With margin expansion underway and the refinancing process in motion, the business has a clear route to resume growth at a pace the balance sheet can support. We continue to work alongside the team through monthly management reviews, tracking performance, pressure-testing assumptions, and pushing for decisions that keep growth disciplined and cash reliable.