Juillet 2004

These are formidable times for food and beverage companies. In addition to the long-existing pressures of intense competition, minimum pricing power and subdued market growth prospects, the industry now is experiencing the public’s growing unease with certain operating practices and product offerings.
Well publicized concerns from social, governmental and medical communities regarding obesity, food safety, portion size and product ingredients are prodding some companies to change the way they operate. Increased litigation and legislation are also playing into recent corporate decisions. Corporate earnings are see-sawing. Financial comparisons are becoming difficult as companies respond in varying degrees to changing eating habits, brand attacks and government-mandated cost increases.

Deloitte & Touche LLP has identified the following ten issues that we believe will be the most important in the coming year to agribusinesses and food and beverage processors. Because the global industry is very fragmented, despite the existence of several very large players, competition can come from any corner. In this kind of environment, a quick responsiveness to key trends often is the basis for a company’s success.

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