Companies that process and package food and drink face two very clear challenges. Firstly, like any consumer business, they need to anticipate and satisfy the evolution in consumers' tastes. Secondly, they need to respond to the increasing power of the major food retailers. In the UK, for example, 70% of food spending is with the top four supermarkets. Successful food and drink companies respond to this scenario by building strong strategic relationships with the majors or finding alternative distribution channels.
In this market we aim to partner:
- food companies delivering increased convenience to consumers. The time devoted to food preparation continues to fall across the western world, but customers do not want to compromise quality in their eating.
- companies appealing to an increasingly health-conscious population. This goes beyond interest in the fat and sugar content, to a demand for functionality in foods and beverages, meeting a number of sophisticated nutritional needs in a convenient form.
- companies developing new ingredients, components and technologies which can improve the convenience, preservation and nutrition characteristics to the benefit of producers, retailers and consumers.
- selective private label manufacturers. Whilst the large retailers are demanding customers, some great businesses have been built in important categories based on quality of service and new product development. Businesses trusted to partner the international expansion of the majors can rapidly grow their business and greatly increase their chances of successful market entry.
Within trends that are well established internationally there are considerable variances between, for example, a preference for chilled and frozen food. As always, an in-depth knowledge of local consumer tastes is vital. This is particularly true in the vast markets of China and India, where highly sophisticated food cultures are beginning to be complemented by increased reliability and quality of supply chains.
