The times, they are changing
Over the past three decades, continued improvement in living standards in the developed world has driven the growth and profitability of food and drink producers.
The traditional local supply networks have been replaced with increasingly global retailers and suppliers, pushing down the relative cost of basic foods and dramatically extending customer choice.
But Daniel Bernard, president of Provestis and former CEO of Carrefour, believes that is changing: “We’ve had 30 years of big progress in spending power and lifestyle, but globalisation, deflation and sociological change means that this is now under pressure. People are already spending less of their disposable income on food.”
This is putting pressure on food and drink companies to become more efficient. They need to understand their customers better and break into new, high-growth markets. That requires a deep understanding of the cultures in the countries being targeted, flawless execution and an innovative approach to product development.
“Why does the industry want our support?” asks Michael Queen, head of growth capital at 3i. “Because our style of ownership, which provides financial expertise, operational know-how and global connections, will ensure they have the maximum opportunity to compete and grow in exceptionally competitive times.” For companies with the right strategy, partners and execution, the prize is there for the taking.