The beverage company engaged AEGIS to identify and quantify its aluminum price exposure within the procurement process.
AEGIS assisted the company in establishing an internal risk group to monitor and document its commodity exposures.
With the infrastructure in place, the AEGIS team worked with the company to implement and execute a hedging program using financial hedges to offset aluminum price risk.
Hedges were executed with well-capitalized banks and the company had full transparency to current market conditions - ensuring the prices were fair and efficient.
A “stop-loss” strategy enabled the company to benefit as aluminum prices declined and strategically limited its exposure to further price increases as the market marched higher.
Had the market subsequently declined, the company would have remained hedged, but not realized the full benefit of lower prices.