Case Studies

Recovering Millions by Revitalizing a Dormant Drawback Program

2 minute read

EXECUTIVE SUMMARY: When a complex Drawback initiative stalled, a global spirits company risked losing millions in potential savings. Catena Solutions restructured the program, built cross-functional alignment, and provided clear execution frameworks to unlock up to $100 million in annual tariff recovery.

The Challenge: Unlocking Value Amid Complexity & Change

The client identified a significant opportunity to improve margins by reclaiming millions of dollars in excise taxes through a Drawback program. However, implementing the initiative proved difficult due to its complexity and the organizational changes required to integrate it across the supply chain. Key challenges included:

• The novelty of the initiative and the scale of the organization
• Difficulty securing executive-level buy-in
• Resistance from employees who were asked to work beyond the scope of their roles
• New geopolitical realities and constantly evolving trade negotiations

The Solution: Aligning Strategy, Operations & Stakeholders

Catena Solutions deployed an Innovation Strategist with more than 15 years of experience leading cross-functional initiatives in the alcoholic beverages sector, including drawback programs. Specifically, the strategist had experience helping companies file for refunds based on past exports and optimize their supply chains to qualify for greater refunds and savings.

The consultant’s approach centered on:

• Building a clear project management framework to recover excise taxes by reducing tariff exposure and aligning supply chain operations with Drawback requirements.
• Implementing a tailored innovation stage-gate process to prioritize initiatives and create a clear execution path.
• Streamlining the product portfolio to align with supply chain requirements for tariff recovery.
• Equipping leadership with targeted communication materials and talking points to build stakeholder support and overcome internal resistance.

The consultant’s experience as a spirits industry startup founder provided a holistic perspective and the ability to lead cross-functionally. Their track record in creating innovative solutions, including spearheading the first direct-to-consumer alcohol initiatives, enabled them to apply operational, regulatory, and tariff expertise creatively, which quickly connected siloed functions and reinvigorated a stalled initiative.

The Benefit: $100 Million in Annual Savings and Renewed Momentum

Tangible benefits we brought to the client included:

Additionally, our work shifted the company’s strategic lens from a brand-by-brand perspective to a category-level approach, which accelerated adoption across broader product lines. If you’re facing similar challenges with your Drawback program, contact us to see how we can help.

---