CPG Due Diligence: The Operator Framework Behind a $1B Exit | Keith Levy Part 1

Keith Levy, Operating Partner at Sonoma Brands Capital

Growth equity and corp dev professionals run diligence from the wrong end. They open the data room, run the model, and score the TAM. Keith Levy starts somewhere else entirely.

Keith has sat in every seat that matters in CPG. He was CMO at Anheuser-Busch when InBev acquired the company for $52B, ran Royal Canin USA for Mars where he doubled revenue and tripled earnings, and led the Kind acquisition as head of global business development at Mars Wrigley. For the last six years he has been an Operating Partner at Sonoma Brands Capital, leading diligence across food, beverage, pet food, snacks, and cosmetics. He knows what strategic acquirers are actually looking for because he was one. That perspective is the whole point of this conversation.

The framework he uses has five pillars: founder, product-market fit, go-to-market, how it's made, and financials. In that order, for a reason. By the time you're evaluating the P&L, you should already know whether the deal is worth your time.

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What You'll Learn

Why does the founder evaluation come before the financials?
How to read product-market fit the way an operator does, not a financial analyst.
What a credible go-to-market strategy looks like vs. one that crashes in execution.
Why supply chain control is now a diligence requirement, not an afterthought.
How to get the right operators inside a strategic acquirer interested before a banker calls.
The Touchland case study: under $1B exit in less than two years.
The Bachan’s Japanese BBQ sauce case study: ($400M) exit with McCormick at the table.

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The conversation continues next week with the second part, covering CPG brand lifecycle, exit positioning, capital allocation, and what separates the investments that work from the ones that don't.

Already a member? The bonus conversation with Keith is live now: boards, earnouts, and the hardest lessons from six years backing consumer brands, exclusively for M&A Science members.

If you evaluate consumer brand investments and want a framework for the risks the model won't surface, DealPilot, powered by M&A Science, has the practitioner playbook. Join at mascience.com/membership.

Sonoma Brands Capital is a private equity firm focused on the growth sectors of the consumer economy. We aim to partner with bold, innovative founders on their way to building the world’s next enduring brands across the physical and digital landscape.

Industry

Venture Capital and Private Equity Principals

Founded

2015

Website

http://sonomabrands.com

Keith Levy

Keith Levy is a seasoned M&A specialist and Operating Partner at Sonoma Brands. With nearly 35 years in the consumer goods industry, he has held key roles at Gallo, Anheuser-Busch, and Mars Incorporated. Notably, Keith was involved in the $53 billion integration of InBev and Anheuser-Busch. He later led global business development and M&A for Mars Wrigley. At Sonoma Brands, Keith focuses on consumer products, health, and beauty, leveraging his extensive experience to drive growth and integration in these sectors.