I had (have) slotted CCL as a “processor” type of company - the one that takes inputs ( beans ) processes them, and then sells them at a margin, and thus the growth is more driven by volume than value-add. In other words, more input, more output.
After these posts, I checked again the OPM of CCL - a healthy 20+%. Interestingly, so are margins of Starbucks & Kraft-Heinz, and could not find numbers for JDE being privately held. So**,if** KH and SB are customers of CCL, how does CCL also maintain margins? In fact their AR-2017 states:
Competition & Market Risk:
The coffee markets in which we do business are highly competitive and competition in these markets is likely to become increasingly more intense due to the relatively low barriers to entry. The industry in which we compete is particularly sensitive to price pressure, as well as quality, reputation and viability for wholesale and brand loyalty for retail. To the extent that one or more of our competitors becomes more successful with respect to any key competitive factor, our ability to attract and retain customers could be adversely affected. Our private label and branded coffee products compete with other manufacturers of Instant coffee
At least from the AR it is not clear the breakup of their B2B & B2C revenues, especially as they sell to stores for their private labels where the margins can be extremely thin.