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Delta Beverage Group, Inc.

Eades, Kenneth M.

Case

Delta Beverage Group, Inc.

Eades, Kenneth M.

F-1188 | Published October 13, 1997 | 20 pages Case

Collection: Darden School of Business

Product Details

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.

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