Food Beverages And Hospitality October 2018

FOOD
&
BEVERAGE
INDUSTRIES
Why are the food and beverage
industries being reinvented?
What changes are sweeping through the food and
beverage industries?
The industries are going through a convergence,
similar to the digital convergence that changed the
way we live and communicate. Traditionally, these
markets have been rather slow-moving. But now,
several changes are disrupting the business at large.
Mega-shifts in the food and beverage industries,
driven by consumer and business forces, have the
potential to disrupt a company’s DNA and its very
purpose. Being aware of these overarching trends
can help packaging departments better serve their
company’s fluctuating business needs.
Business transformation leader Dan Balan, head of
Chicago management consultancy Fastraqq Inc.,
shares his insights into the reinvention of the food
and beverage industries in the first of a three-part
“Transforming Industries” article series.
In this series, Balan will investigate the reinvention
of three fundamental industries that form the
bulwark of the greater economy: (1) food and
beverage; (2) retail; and (3) packaging. Collectively,
these industries represent more than a trillion
dollars in gross domestic product (GDP).
Balan also served as an executive media
spokesperson at the Global Food and Beverage
Packaging Summit (July 7-8; Chicago) and will have
more to share later on key takeaways from the
conference.
There is an increasing chorus for ingredient
declaration, removal of harmful additives and
preservatives, biodegradable and recyclable
packaging materials, and elimination of harmful
plastics.
Further, this industry is rattled by the intersection of
health, nutrition, taste and lightness. This is creating
b o t h o p p o r t u n i t i e s a n d c h a l l e n g e s f o r
manufacturers. Nutraceutical companies will make
deeper inroads into the food and beverage business.
That disruption is imminent.
Grocery outlets are now proliferating store brands
and shadow brands to compete with mainstream
brands. Retail relationships are becoming twisted
with wholesalers. Technologically, this industry is
now beginning to evolve.
How is the supply chain changing this industry?
The biggest issue in supply chains will be
containment of bullwhip effect and the acceleration
of payment cycles across the entire ecosystem.
Bullwhip is the term for supply-demand mismatch
across the nodes in the supply chain. Next to
consumer electronics, the food and beverage
28 Focus Food Beverages & Hospitality | October - 2018 | www.kingsinfomedia.com