The sweet taste of success for the Capri Sun Treasury Team

In nine short months, Capri Sun overhauled its Treasury solutions to be a highly commended winner at the 2021 Adam Smith Awards.

Headquartered in Switzerland, Capri Sun has offices in Germany, Austria, Italy, UK, Dubai and China. The company sells six billion pouches of juice in 110 countries every year, but up until September 2019 it did not have a dedicated treasury department.

Capri Sun’s treasury activities had previously been dispersed across the accounting department, with processes varying  between countries. Robust systems, controls and framework needed to be established with a streamlined and automated approach that could address the situations at hand.  Capri Sun also required an efficient liquidity setup, where it could easily integrate domestic liquidity into targeted group wide cash concentration setup, with a blended cross-currency payment platform and intra-regional cash pool solution.

When Marilyn Heng was appointed as the Group Treasury Manager in September 2019, she set about defining Capri Sun’s Treasury, with Treasury Operations one of her main priorities. In February 2020, after a request for proposal (RFP) process involving six banks, Capri Sun awarded the Group Cash Management project to BNP Paribas. Capri Sun worked with BNP Paribas in the Middle East & Africa to create a unique structuring solution which would work cross-border, as a cross-currency cash pooling solution that converts AED liquidity into USD with pre-agreed FX margins in a bid to simplify its global treasury operations.

We now have a strong foundation for Treasury and we are poised to support business growth at Capri Sun. The team at BNP Paribas played a monumental role in our cash management success story and we are thrilled to have been recognised in the Adam Smith Awards.

Marilyn Heng, Group Treasury Manager Capri Sun

At the same time, Capri Sun’s expansion into the Middle East in 2020 meant that the new treasury also had to support increased activity in the region. Part of the solution was to set up foreign accounts for the Middle Eastern entities in Europe, enabling Capri Sun to leverage speed and cost of transactions on local payment types. The accounts are connected to the automated group cash pool structure to ensure that there is always enough liquidity in the right currency for the company to use, without having to go through a lengthy internal funding process and while keeping FX exposure low.

Despite being a middle market enterprise in a larger pool of competitors, in just nine months the company’s treasury function was setup, solutions were transformed through a level of automation that larger companies sometimes take years to achieve.  Remarkably, Capri Sun’s treasury project was led only by Ms Heng utilising her strong project management and cross- functional business partnering skills to make various internal and external teams work together.

“What has been accomplished over the last year and a half has been no small feat for Capri Sun. As we had very ambitious treasury plans for the year, we needed open communication, efficient efforts and strong partners to enable us to reach our goals. Not only have we established our Treasury department, we have also strengthened our presence in the company as a key business partner for treasury topics,” Said Ms Marilyn Heng, Group Treasury Manager Capri Sun.

With a global presence, Capri Sun needed an international bank in the Middle East & Africa with expertise in bespoke cash management solutions to help them solve complex and legacy related treasury issues. Through our One Bank approach, not only did we help rectify and streamline these processes across borders, we did so in record time.

Fabio Sarao, Head Cash Management, Investment & Liquidity Management MEA, BNP Paribas

She continued: “We now have a strong foundation for Treasury and we are poised to support business growth at Capri Sun. The team at BNP Paribas played a monumental role in our cash management success story and we are thrilled to have been recognised in the Adam Smith Awards.”

Fabio Sarao, Head Cash Management, Investment & Liquidity Management MEA said: “With a global presence, Capri Sun needed an international bank in the Middle East & Africa with expertise in bespoke cash management solutions to help them solve complex and legacy related treasury issues. Through our One Bank approach, not only did we help rectify and streamline these processes across borders, we did so in record time.”

He continued: “We are privileged to work with clients such as Capri Sun, who are true treasury innovators. They trusted us to think outside the box.”