As the food and beverage sector becomes more and more competitive and heavily scrutinised, companies are faced with new challenges in providing safe, quality products, as well as meeting consumer and societal trends.
Globalisation and the development of new markets and suppliers, as well as the global sourcing of raw materials, have led to extended and more complex supply chains which affect the way global food players operate. This causes consumers to become more cautious when choosing food products. In addition to increased consumer awareness, national and international food-related incidents have created difficulties for many players in the food and beverage industry. Guaranteeing quality and safety at every step in the production chain has consequently become essential in order to have a competitive advantage in the global marketplace.
In response to globalisation, cost-effective production and reliable supply chain management have become increasingly important criteria for market success. Today’s mergers, acquisitions and alliances have clear motives – the main ones being to increase cost efficiency through synergies, to gain new market opportunities, and to obtain and strengthen brands. Increasingly, these consolidation activities are cross-border and even cross-continental. Managing risk has become a central requirement for those operating along the food production chain, from farmers, fishermen and growers to food processors, retailers, distributors, storage and transport companies, as well as brand owners.
Increased consumer awareness
Consumers are increasingly aware of the quality, hygiene and safety issues surrounding what they eat or drink. While the knowledge of food risks is increasing, people are also becoming more aware of the relationship between food and well-being. Self-gratification, nutritional value and safety are all quality labels that consumers focus on. This awareness covers the whole range of issues surrounding food and beverages – from the raw materials and the conditions in which they are grown or raised to the reliability of the technologies used during manufacturing and processing and the storage and transport systems.
Corporate reputation an emerging issue
A key issue for food and beverage companies is branding. A strong brand generates added value and strengthens the market position. However, building and sustaining a brand takes enormous investment without any promise of guaranteed success. In today’s market, the complex supply chains and outsourcing of the manufacturing of branded products mean less control over sourcing and processing. With thousands of ingredients as well as thousands of suppliers/manufacturers in a production chain, it is evident that managing risk has become a central requirement for food and beverage industry players.
A question of trust
Consumers’ and other stakeholders’ expectations impose effectiveness, transparency and sustainability through the entire supply chain. The complex food network is why businesses and consumers look to trustworthy companies to meet their demands for guarantees. Companies can earn this trust by being able to demonstrate that they are diligent and vigilant and that they have an effective, rigorously maintained management system covering all their processes. Such companies have a wide-reaching risk management approach and the certification to prove it. Certification to recognised national or international standards ensures the implementation of best practices and communicates this to the business and consumer segment. Building and maintaining efficient and sustainable supply chains is a must in order to maintain a competitive presence in the market and indeed ensure the survival of brands as well as food and beverage players.
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