Hyderabad, Andhra Pradesh -- (SBWire) -- 05/24/2012 --ReportReserve announces the inclusion of its new report in Food ,Beverages & Tobacco Industry

“Global Food and Beverage Survey 2012–2013: Market Trends, Buyer Spend and Procurement Strategies in the Global Food and Beverage Industry” is a new report by Canadean that analyzes how global food and beverage industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report provides data and analysis on category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities of leading purchase decision makers in the global food and beverage industry. The report also identifies future growth of buyers and suppliers, M&A, and e-procurement in the global food and beverage industry. This report not only grants access to the opinions and strategies of business decision makers and competitors in the global food and beverage industry, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and sizes.

Introduction and Landscape

Why was the report written?
This report is the result of an extensive survey drawn from Canadean’s exclusive panel of leading global food and beverage industry executives. The report provides data and analysis on buyer expenditure, procurement, and developments within the global food and beverage industry. This report includes key topics such as global food and beverage industry buyer expenditure, and procurement behaviors and strategies. This report identifies the threats and opportunities within the global food and beverage industry, economic outlook trends, and business confidence within global food and beverage industry executives.Most secondary research reports are based on general industry drivers and do not understand the industry executives’ attitude and changing behaviors, creating a gap in presenting the business outlook of the industry. In an effort to bridge this gap, Canadean created this primary research-based report by gathering the opinions of multiple stake holders in the value-chain of the global food and beverage industry.

What is the current market landscape and what is changing?
Executives from the global food and beverage industry expect increased levels of consolidation, with 46% of respondents anticipating that there will be either a ‘significant increase’ or an ‘increase’ in mergers and acquisition (M&A) activity over the next 12 months.

What are the key drivers behind recent market changes?
M&A activity is expected to increase as a result of the lack of credit availability, increasing cost pressures, new consolidation opportunities, and the weak liquidity position of many small companies. The need to manage new cost or demand pressures, repay debts, comply with procedures, reduce operational expenses, and attain economies of scale, is also expected to drive M&A activity in the global food and beverage industry.

What makes this report unique and essential to read?
“Global Food and Beverage Survey 2012–2013: Market Trends, Buyer Spend and Procurement Strategies in the Global Food and Beverage Industry” is a new report by Canadean that analyzes how food and beverage industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report gives you access to the category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities of leading purchase decision makers. The report also identifies future growth of buyers and suppliers, M&A, and e-procurement. This report not only grants access to the opinions and strategies of business decision makers and competitors, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and size.

Key Features and Benefits
Project industry trends and revenue growth expectations in 2012 and make informed business decisions.

Drive revenues by understanding future product investment areas and key growth regions.

Uncover key challenges and opportunities and identify key actions required to maintain and win buyer business.

Formulate effective sales and marketing strategies by identifying how buyer budgets are changing and the direction of spending in the future. Better promote your business by aligning your capabilities and business practices with your customer’s changing needs.

Secure stronger customer relationships by understanding the behavior and changing strategies of industry buyers.

Key Market Issues
Global food and beverage industry respondents identify China to be the most important region for growth among emerging markets, along with India and the Middle East. Furthermore, India and the Middle East are considered the two most important emerging markets by respondents from food manufacturing companies, while India and Brazil are identified as the two most important emerging markets by respondents from beverage manufacturing companies, with strong economic growth in both countries, along with high demand for processed and healthy foods and increased consumption of branded beverages such as wine, beer, coffee, juice, and dairy products among consumers, making them attractive to foreign investors.

Among food manufacturers, 59% of respondents rate ‘responding to pricing pressure’ as the most important business concern in 2012, while 52% highlight ‘cost containment’. Among beverage manufacturers, ‘responding to pricing pressure’ and ‘market uncertainty’ are considered the most significant business challenges in 2012, according to 65% and 48% of respective respondents. Furthermore, respondents from global food and beverage industry companies, regardless of size, consider ‘responding to pricing pressure’ and ‘market uncertainty’ as the most important leading business concerns.

The average size of the global annual procurement budget among food and beverage industry buyers is forecast at US$184.4 million for 2012. A comparison of global procurement budgets by operating region shows that global food and beverage industry buyers with leading operations in North America have the highest average procurement budgets in 2012, at US$167.7 million.

‘Quality’, ‘price’, ‘level of service’, and ‘supplier’s record for reliability’ are considered the most important factors for supplier selection in the global food and beverage industry, while ‘supplier’s environmental record’, ‘proximity of supplier operations’, and ‘supplier’s CSR reputation’ are considered the least important. Buyer company respondents are prioritizing procurement objectives such as ‘internal operating cost reductions’, ‘locate lower cost sources of supply’, and ‘pursue joint cost reduction efforts with selected suppliers’ for the next 12 months.

The optimism level in the global food manufacturing sector is expected to be fuelled by increased consumer demand towards health and wellness oriented food products. In the case of global beverage manufacturing sector, it is due to an increased customer demand in emerging markets mainly China and India, demand for organic products, and adoption of sustainable sourcing strategies by beverage companies.

Key Highlights
An analysis of responses by food manufacturing companies reveals that ‘new product development’, ‘machinery and equipment purchase’, and ‘IT infrastructure development’ will record a significant increase in capital expenditure over the next 12 months.

An analysis of responses by beverage manufacturing companies reveals that ‘new product development’, ‘IT infrastructure development’, and ‘machinery and equipment purchase’ will record a significant increase in capital expenditure over the next 12 months.

66% of food manufacturer respondents project an increase in investment toward ‘new product development’, with an increasing focus on new flavors and product features. For example, in order to expand its snack business in the US, PepsiCo snack brand Doritos announced the introduction of its new product ‘Doritos JACKED tortillas’ in March 2012. These tortilla chips are 40% larger than its predecessor and are available in two distinct flavors, Enchilada Supreme and Smoky Chipotle BBQ.

Global food and beverage industry suppliers plan to increase capital expenditure on ‘new product development’ over the next 12 months. For example, in January 2012, Key Technology, a supplier of machineries, introduced a new, redesigned ‘Auto Dryer’ for eliminating surface water from fresh-cut produce while enabling continuous line flow. The new dryer is effective in removing moisture from fresh-cut produce gently and consistently, to improve product quality and extend shelf life.

According to 37% of respondents from food manufacturing companies, and 33% from beverage manufacturing companies, the head counts in their organizations are expected to increase steadily by up to 2% in 2012. However, 34% of respondents from food manufacturing companies and 36% from beverage manufacturing companies anticipate ‘no change’ in recruitment activity in 2012, which indicates that slow economic development in developed countries and market uncertainty could reduce recruitment activity."

For further information visit http://www.reportreserve.com/report/global-food-and-beverage-survey-2012%E2%80%932013-market-trends-buyer-spend-and-procurement-strategies-in-the-global-food-and-beverage-industry-report-538342