Delta Beverage Group, Inc.

Abstract

Delta Beverage is facing severe cost control problems. In addition to the high interest expense, the cost of aluminum cans and PET containers have risen substantially during the past year. The student must decide whether the CFO should hedge aluminum to avoid the risk of violating a loan covenant. The case works well as an introduction to risk management.

Citation

Eades, K.M. (2017), "Delta Beverage Group, Inc.", . https://doi.org/10.1108/case.darden.2016.000089