Emerging markets and the role of private equity
Food and drink is an industry that thrives on new product development and innovation. Its partnership with the private equity industry is a strong one. In a globalising world, manufacturers, distributors and retailers are facing up to new challenges.

Welcome to this, the latest European food and drink report for 2006, produced by 3i. It is the latest in a series of reports examining the role of private equity within key sectors of the European economy.

Europe’s food and drink industry is going through a period of change, as new markets, technologies and patterns of consumer behaviour threaten to overturn the status quo – but simultaneously create opportunities for innovative companies. We look at the opportunities created by the accession of eight new countries to the EU, both as a market of 100 million consumers and a low-cost production base. We also look at how customer data can be used to create value right across the supply chain, the impact of technology on food and drink companies and how producers are reacting to changing customer tastes.

Navigating the new food and drink economy requires a clear understanding of these dynamics. The winners will be the companies that build strong relationships with knowledgeable, networked partners from the business and financial community. The role of private equity has never been more important.

“Companies in this industry have a great opportunity to grow, but only those with energy, ambition and focus will build the strong international relationships that are
necessary to succeed.”

Michael Queen, Head of Growth Capital, 3i