Recipe for Success in the Food and Beverage Industry – Top Trends and the Best Food and Beverage Companies Selection Criteria
The cauldron in the current food and beverage industry is cooking up a storm of trends that are poised to change the face and functioning of this industry. Stakeholders including the food and beverage companies who are failing to adapt to these trends are cutting the humble pie in this industry. On a positive note, [...]READ MORE >>
The cauldron in the current food and beverage industry is cooking up a storm of trends that are poised to change the face and functioning of this industry. Stakeholders including the food and beverage companies who are failing to adapt to these trends are cutting the humble pie in this industry. On a positive note, scores of stakeholders are adopting these trends to create their recipe to taste success in the food and beverage industry. This blog focuses on such key trends and offers insights to buyers into the best selection criteria to engage with the leading food and beverage companies that can add value to their business.
Before you read further, know who are the leading food and beverage companies that buyers are partnering with to gain a competitive edge in the ever-dynamic food and beverage industry. Get complimentary access to our procurement platform to get instant and real-time information on these food and beverage companies.
Key Food and Beverage Industry Trends
These trends are currently changing the scopes and the way to do business in the food and beverage industry. In response to this, most of the food and beverage companies are restructuring their business models as well as their inventories which are heralding complexities in the supplier selection and management for buyers in this industry.
Food and Beverage Industry Catering to Retail Experience
No matter how much it sounds like the apple and orange analogy, it is currently one of the trends that are bringing in business scopes as well as difficulties in the food and beverage industry. The food and beverage section is now becoming a quintessential part of hypermarkets and shopping malls that are mushrooming across regions. For consumers, retail therapy essentially concludes with a satisfying gastronomic experience. It will not be an exaggeration to state that the footfall in such retail stores is majorly influenced by the quality and quantity of food and beverage stalls. This is widening the business channels for scores of food and beverage companies. However, the proliferation of e-commerce retail platform is casting a pale gloom on the business prospects of the food and beverage companies.
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Organizing Food and Beverage Industry in the Organic Way
Concerns over health and expectations of better eating habits are compelling food and beverage companies to re-organize their inventory to accommodate ingredients that are organic and suit consumer’s penchant towards natural and healthy consumables. While being healthy, such organic ingredients are expensive and generally have shorter shelf-lives. This is increasing their inventory-related expenditure which they are ultimately compensating by hiking the price of the end-products in the food and beverage industry.
Stringent Regulations are Increasing Product Recalls in the Food and Beverage Industry
While using food-grade colors and additives are catering to the distinguishing factor of consumables, these are also some of the serial offenders charged with stomach-related ailments. Such artificial additives are some of the common ingredients used in convenience foods and beverages which are currently a rage among the urban population. This is stirring the concerns of the health watchdogs who are tightening their leash around the food and beverage companies. They are increasing the stringency of regulations that govern the usage of such usages. Such stringencies are not only increasing complexities for food and beverage companies in the form of spiraling compliance costs but are also rendering the supplier selection difficult in the food and beverage industry.
Are the Multiple Advertisement Channels in the Food and Beverage Industry Making Consumers Wonder What to Buy and What not to?
There is no doubting the fact that consumer’s taste has always been extremely dynamic when put to the test of time. To embrace and capitalize the same, most of the food and beverage companies are resorting to aggressive marketing campaigns both on the e-commerce platform and at the brick-and-mortar stores. While some of those campaigns promise healthy bites, the other promises satisfaction for their tastebuds. In a way, this is hampering product differentiation which is affecting consumer’s purchases in the food and beverage industry. Most of the time, such advertisements fail to project transparency on the consumables which is one of the critical customer concerns when it comes to what they eat.
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Insights into Supplier Selection Criteria in the Food and Beverage Industry
It is evident that the key to capitalizing on the business-promoting trends in the food and beverage industry is to partner with the best-suited food and beverage companies and to achieve favorable supply relationship management with them. However, it must be kept in mind, that achieving a favorable supplier relationship management is not a matter of a moment. It must be planned in view of the pressing forces that threaten to create obstacles for buyers in the food and beverage industry.
Technical Acumen of Food and Beverage Companies
The food and beverage industry is governed by disruptive trends to which buyers have to stay abreast and upgrade. This makes it essential for them to engage with food and beverage companies that have the necessary resources to not only adapt to these trends but also enable buyers to surge ahead in the competition. Some of the aspects that buyers must consider while selecting suppliers in the food and beverage industry are:
- Expertise in meeting specific criteria in the food and beverage industry for fortification and addressing key issues of flavor, bioavailability, texture, cost, marketability, and shelf-life.
- Ability to develop specific ingredients to differentiate the buyer’s products on store shelves according to consumer preferences.
- Ability to reduce new product development timelines without compromising quality.
- Expertise in aspects such as purchasing, testing, inventory management, and labor management in the food and beverage industry.
While strategic supplier partnership is crucial to optimize procurement spend, lack of real-time insights into the current supply market scenario results in sub-optimal partnerships. Request a free demo of our procurement platform to gain immediate access to supplier selection strategies for the food and beverage industry.
Evaluating the Internal Food Safety Quality Traceability System
This is one of the most critical selection criteria that buyers must consider to stay in the good books of the regulatory watchdogs in the food and beverage industry. Food and beverage companies implement product traceability systems to track any substance that is being used for production, processing, and distribution. It provides the companies supplier with better control over product integrity. It also helps buyers protect their brand reputation in the food and beverage industry, as it helps in rapid issue identification and resolution.
Collaborate with Food and Beverage Companies who Follow a Value-Creation-Based Approach
In the food and beverage industry, companies must ensure that they have a continuous improvement mechanism in place aimed at enhancing the value for buyers. This starts with maintaining a secure, reliable, and high-quality sourcing and procurement process of raw materials. Food and beverage companies are expected to target the maximum possible efficiencies in operations and meet new and emerging requirements of consumers in the food and beverage industry.
Packaging and Logistics Capabilities of Food and Beverage Companies
Inadequate packaging and inefficient logistics have not only resulted in product recalls but have also tarnished the brand reputation of buyers in the food and beverage industry. Suppliers are expected to deliver under a fixed schedule with proper assistance and supervision during transit. This ensures that the functional attributes of the product remain intact. In the food and beverage industry, buyers must ensure that they partner with suppliers who adopt innovative packaging materials that facilitate the improvement of the shelf-life of products due to their anti-microbial and anti-moisture properties.
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