Case Study

Beverage Company Secures Better Pricing Through Competitive Procurement

Beverage Company Secures Better Pricing Through Competitive Procurement

The opportunity

A multi-state beverage company sought greater competition and a more strategic approach to energy procurement across its Ohio and Texas operations.

The organization managed two operating companies in different energy markets and had historically worked directly with suppliers. Its Ohio electricity agreement had already expired, while the Texas facility was approaching renewal within the following year.

With different supplier relationships and contract timelines across the two locations, the company needed a more coordinated procurement strategy. Tradition Energy was engaged to evaluate available options, introduce greater competition, and improve the company’s overall approach to managing energy costs.

Analysis

Tradition reviewed the company’s existing fully fixed supply structures in both Ohio and Texas and identified an opportunity to improve results by expanding supplier competition and evaluating alternative product options.

Tradition required the incumbent supplier to compete against the broader market rather than allowing the renewal process to remain a direct negotiation. This provided a clearer benchmark for available pricing and created greater negotiating leverage.

Rather than limiting the company to fully fixed products, Tradition introduced additional procurement structures designed to provide greater flexibility and better align purchasing decisions with market conditions.

Tradition developed a more involved strategy that accounted for different contract timelines, supplier relationships, and market conditions in Ohio and Texas. This created a more consistent framework for managing energy across both operating companies.

The Result:
Better Pricing & Strategic Control

More Favorable Energy Rates

Introducing broader supplier competition improved pricing by forcing the incumbent to compete against alternative market offers.

Greater Product Flexibility

Tradition expanded the company’s procurement options beyond fully fixed structures, allowing management to evaluate strategies better suited to changing market conditions.

More Strategic Energy Management

The competitive process demonstrated the value of a more involved procurement strategy, leading the company to engage Tradition for ongoing energy management across its multi-state operations.

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Beverage Company Secures Better Pricing Through Competitive Procurement