Tuesday, May 01, 2012 | Posted by: Grant Thornton
Categories: Thought Leadership | Tags: business, statistics, investment, research, report, growth, M&A, acquisitions, financing, food, Private Equity, beverage, drink, consolidation, F&B, consumer, corporates, PE, growth drivers, NPD
Where will growth come from over the next 12 months in F&B? Our survey of private equity houses and companies currently investing in the sector revealed three main areas…
With tough trading conditions in the food and beverage (F&B) sector in the UK and Ireland, investors are looking hard for growth opportunities. In our commissioned research report, we asked both corporate and PE respondents on where they think growth will come from in this challenged sector.
Here’s what we found to be the three main drivers.
1. New Product Development (NPD)
Consumer tastes are changing and their time is becoming more precious so the emphasis is now to develop new functional and technical ingredients, as well as products that have health and nutritional benefits. But while NPD is vital for survival it also represents significant capital outlay in tough economic times.
There appears to be real confidence among industry professionals that there will be a plentiful supply of acquisition opportunities over the coming year. Acquisitions can help reduce over-dependency on any one customer and maximise potential buying power thus significantly helping to reduce risk. But a number of interviewees stressed, speed is of the essence in this rapidly changing M&A landscape.
3. Overseas expansion
Many businesses are looking to spread their geographic exposure in the face of the Eurozone crisis. Others recognise the advantages of expanding to other potentially lucrative markets, including the emerging economies where consumer tastes are changing in line with their increased spending power.
The full list of drivers can be found in our chart. You can get hold of the full report below.
Download a copy of the report
The above gives a snapshot of growth in F&B. For more information, the full report is available as a PDF: Where is the smart money going in Food & Beverage?
The 22-page report contains:
- The UK and Ireland Food and Beverage review
- Investor predictions
- Drivers of growth
- Consumer trends
- Access to finance
For further information on our F&B sector services, visit our Food and Beverage page.
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