Eat, drink & be ready

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Eat, drink & be readyFood and Beverage 2012

A taste of things to come

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ContentsDo you have an appetite for change? 1

The consumer view: How contrary? 2

The industry view: Growing challenges 4

A taste of things to come 6

Pillars of success 10

2012: Who can predict the future? Food for thought 12

Join the debate 13

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1


Do you have an appetite for change?It has never been tougher to build a successful food and beveragebusiness in the UK than it is today. Food and beverage companiesface an array of increasingly complex issues and questions. Themanner in which they choose to respond to these challenges willshape the future of the industry for many years to come.

Over the past six months the Food and Beverage team at Deloittehas carried out interviews with board level executives at more thanseventy leading manufacturers, retailers and food servicecompanies. We have spoken to relevant government bodies andundertaken a survey of over 1000 consumers. This research hasgiven us a unique insight into the current challenges facing theindustry. Building on this, we are developing a major report that webelieve will help food and beverage companies define their chosenfuture place in the industry, and to succeed in becoming a leader inthis role.

This document gives a flavour of our findings. It is a high levelsummary of the full report, which will be published later in Spring 2007.

A recent period of significant changeThe food and beverage industry has experienced significant changein the last 5 years. Much of this change has been consumer-led withhealthier eating, convenience and the quest for new consumptionexperiences having the greatest impact. The health and nutritionagenda has been aided by increasingly active government supportand media focus.

Examples of some of the specific changes we have seen include:

New products

• Smoothies

• “Finest” quality private label products

• Probiotic and cholesterol lowering foods

• Breakfast cereal bars

• Allergen free ranges

• Organic products

New experiences

• The “skinny decaff latte” coffee shop culture

• Affordable sushi for a working lunch

• Cold beer in the supermarket

• Hot, fresh food “to go” in supermarkets

• Growth in consumption of alcohol at home rather than inrestaurants, pubs and bars

New issues

• Growing awareness of health issues among the broadercommunity

• Desire for fresher, simpler, natural food

• Demand for clearer food labelling

• Ethical concerns around food miles and fair trade

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The consumer view: How contrary?Consumers have multiple motivations which affect their purchasingand consumption patterns. They respond to concerns and ideasfrom an increasingly broad range of sources such as the media,celebrities, special offers, advertising and internet communities.Traditional mass media represent a less and less efficient means totarget specific consumers whose purchasing habits are increasinglyoccasion based. Better understanding the increasingly fickleconsumer is essential to anticipating and affecting consumerbehaviour, and ultimately in ensuring long term success.

It is not surprising that our research has shown that the keyconsumer trend, as understood by the industry, is towards healthyeating, particularly of fresh food. Interestingly, this is almost doublethe importance placed on convenience, the next most importanttrend.

However, the consumer view is much more complex than this. We have found consumers to be increasingly discerning anddemanding. Very often they simultaneously demonstrate multiplemindsets which imply seemingly contradictory shopping patterns.The research also highlights substantial discrepancies betweencustomer intention and behaviour, as shown below.

In summary, the consumer is increasingly fickle, discerning andoccasion driven. Our research has confirmed that there isconsiderable overlap between opposing motivations. For example,more than thirty percent of the consumers in our survey indicated a desire to search for bargain products whilst at the same timeindicating they will buy more premium products than ever before.

Authenticity and localness More out-of-home comsumption

Rising indulgence

Health & wellbeing Convenience

More demanding and informed

Higher quality

Key consumer trends

Trend

0

10

20

30

40

50

60

70

80

90

100

77%

43% 41% 39%

31% 30% 29%

Source: Deloitte research. Survey of 77 senior executives at leading food and beverage businesses. Response to question “In your view what are the major consumer trends which are currently shaping the food and beverage industry“.

Consumer intention Consumer reality

To buy healthy foods Buying food on special offerBuying ‘perceived healthy’ foodsrather than genuinely healthyoptionsBuying what’s available orsuccumbing to ‘pester power’

To buy bargains on Buying premium products as special offer an indulgence

Overspending on promotions

Sticking to a Buying more items than intendedshopping list

Like to try new brands Reluctance to try new brandsamong the growing number ofaging consumers

To eat and drink Increased alcohol consumption healthily at home in the homewith the family

To eat more meals 66% of consumers buy a meal or at home snack outside the home at least

once a week

To buy more Consumer spend atlocally-sourced produce supermarkets ever-increasing

To show concern on Expecting out of season producefood miles to be available 365 days a year


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This is a very clear pointer to the need for manufacturers andretailers to make the best possible use of both consumer insight andoutlet segmentation data to determine how, where and when tobest target the right consumers with the right value propositions.

Contrary consumer behaviour

Source: Deloitte research. Survey of over 1,000 consumers. Response to questions “I buy more luxury/premium products than in the past“ and “I search for more bargains and products on promotion“.

I buy more luxury/premium products than in

the past – 42%

29% of total sample

I search forbargains andproducts on

promotion – 69%

“Understanding the increasinglyfickle, discerning and occasiondriven consumer is essential toanticipating and affectingconsumer behaviour.”


4


The industry view: Growing challengesOnce the dominant member of the triumvirate of manufacturer,retailer and consumer, some would contend that today themanufacturers are now the least influential. This is an industrywhich is viewed by many observers as lacking in innovation andhighly fragmented. The industry now finds itself facing a fresh set ofchallenges which were echoed time and time again in the course ofour research.

Amongst these many challenges are:

Increasing pressure on costs – Once healthy margins are beingpushed down as a result of intense price based competition in themarket and increased customer buying power. In addition, theproduction cost base is on the rise due to escalating raw material,labour, energy, transport and packaging costs.

Making sure brands connect with current consumer issues –The businesses and brands that will be most highly valued byinvestors will be those that are proactive on issues that resonatewith consumers. At the moment these include nutrition and health,consumer education, environmental impact, ethical sourcing,provenance and local community contribution. In the future thebrands that resonate most strongly with consumers will “stand forsomething” on such issues.

An ever growing regulatory burden – Local, national and eveninternational legislators are now major influencers on the future ofthe whole food and beverage value chain. Salt, fat and sugarcontent, sustainable production and transportation methods,recyclable packaging and labelling are among the key areas whichare all coming under increasing scrutiny.

Retailer power – Grocery retailers are today’s leading innovatorsand their investment in consumer insight, brand reinforcement,space, assortment and merchandise planning has caused a seismicshift in the power dynamic. For the modern consumer, the largegrocery retailer is now the “arbiter of choice” and where oncemanufacturers were selective and set the trading terms, today thegrocery Category Manager has largely gained control. The biggerthe retailer, and the better the consumer insight they command, the greater power they wield.

Sustaining consumer trust – This is a simple concept butexceptionally hard to do in a market where the consumer is moresophisticated, informed and sceptical than ever before. The legacyof past food safety failures has left a climate of distrust that theindustry needs properly to address. This requires strong qualitymanagement regimes allied to effective communication andexplanation of standards to consumers.

Attracting and retaining top talent – For many years food andbeverage has not been seen as a “destination industry” for brightyoung graduates or senior managers with strong commercialexperience. Perhaps worse still is the retention issue, with manyindividuals using the grounding and training they gain with bluechip food and beverage businesses to then build their careers inother industry sectors.


5


A recipe for change

Ingredients of today– issues

Consumer

• Health and wellbeing

• Convenience• Convenience

• Higher quality

• Authenticity and localness (value-for-time)

• More demanding and informed

• More out-of-home consumption

• Freshness

• More grazing and snacking

Industry

• Increasing pressure on costs

• Lack of connection between brand and comsumer

• Growing regulatory burden

• Growing retailer power

• Sustaining consumer trust

• Attracting and retaining top talent

“The UK is one big melting pot of palates – and this is driving mo re

adventurous eating habits“

“Grocery retailers are today’s leading innovators and theirinvestment in consumer insight, brand reinforcement,space, assortment and merchandise planning has caused aseismic shift in the power dynamic.”


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A taste of things to come

Comparative importance of key current and future consumer trends

Increasing importance

Low importance

High importance

Health andwellbeing

Demanding

Organics

Variety

Convenience

Customisation

Quality andpremiumisation

Out-of-homeconsumption

More experiencedriven

Price-led value

More ethicallyconsiderate

Foodie culture

Online shopping

Source: Deloitte research. Survey of 77 senior executives at leading food and beverage businesses.

1. Source: Food and Drink Federation 2. Source: Government Actuary’s Department

The food and beverage sector in the UK is substantial, with consumerexpenditure both in and away from home totalling around £153bn1 in2005. While there is little overall top-line growth in the sector, this maskssubstantial changes in mix – both in what is consumed and where it isconsumed. It is these changes that present both the challenges andopportunities for food and beverage businesses.

A successful future depends on how individual businesses, and theindustry as a whole, respond and prepare to do business in what will be a somewhat different environment.

The consumer in 2012

Today’s consumers are sophisticated. They understand value versus price,and are used to selectively filtering the multitude of marketing messagesaimed in their direction. Tomorrow’s consumers are going to be evenharder to identify, convert and retain.

The impact of changing consumer trends, behaviours and attitudes willcontinue to grow. This will naturally further drive complexity and heightenthe challenges for the food and beverage business community.Interestingly, the industry view of the future from our research is that themajor future trends are, for the most part, all known quantities. The keychallenge facing the industry would appear to be how best to deal withthose which afford the greatest opportunity for either success or failure.Anticipating the importance of these trends and the resulting impact onconsumer demand and preferences will be key to future success. Whilstsome of these trends will be very generic in nature, there are many whichwill have very specific implications for individual sectors, channels andcategories.

Finally, whilst the industry may believe that the major future trends are allcurrently known this does beg the question as to what would be theimpact of an unconsidered event or trend emerging. The chance of asignificant geopolictical or economic discontinuity occurring sometime inthe next 5 years is significant given current global conditions. The ability torespond to the unknown as well as the known issues is clearly going to bea differentiator for the would be winners.

In addition to understanding the evolving complexity of consumerdecisions and motivations, successful food and beverage businesses aregoing to have to contend with a shift in the demographic make up of theUK population. Over the next five years the UK population will continue toage with the percentage of people over 60 reaching 23% by 2012,representing a growth of 14.5% for that age group when compared with20042. With the post-war “baby boom” generation entering retirement,this segment of the population will include a significant portion of welleducated, active, health conscious and affluent older citizens.

The ethnic mix will also continue to change through continuing inboundand outbound migratory flows and higher rates of childbirth in particularethnic groups compared with the rest of the population. Following currenttrends, citizens from the rest of Europe, Africa and Asia will continue torepresent an increasing percentage of the UK population. The geographicspread of different socio-demographic and ethnic groups will remainunevenly distributed across the country with resulting implications forhighly targeted ranging and merchandising strategies.

Business strategies that respond to the opportunities that these differentgroups represent will become more and more important to mainstreamgrocery retailers and food and beverage manufacturers.


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Industry influences in 2012

1. Health and nutritionThe health and economic consequences of poor diet are huge. It is safe toassume that the current focus by the government on improving nutrition,especially amongst children, will only get stronger. Restrictions onadvertising will become even tougher, labelling requirements moreonerous and “unhealthy” ingredients banned completely.

Medium term developments are likely to include:

• Consumer education through the school curriculum

• Ongoing debate around the advantages of alternative approaches tofood labelling

• Pervasive front-of-pack nutritional content labelling

• Food and beverage companies themselves playing a major role inconsumer education through various channels

• Industry bodies taking a more proactive approach in representing theindustry and publicly reassuring and educating the consumer

2. Environmental and social factorsThe environmental agenda will continue to grow in importance. Retailersand manufacturers alike will be expected to report performance in areassuch as waste management, energy efficiency, reducing food miles,the amount recycled and carbon emissions. We will see new consumerpackaging approaches including an increase in re-usable transit containersand the end of the plastic carrier bag as we know it. All of these issues willalso present significant opportunities to differentiate.

Attitudes to water use will have changed significantly by 2012 with clean,fresh water seen as a precious resource that will become more and moreexpensive. Manufacturing strategies will be increasingly influenced by theavailability of high quality, cost effective water sources.

There will be a greater focus on animal welfare standards and theprovenance of meat, dairy and other agricultural products. The consumerwill be willing to pay a premium for high quality, naturally produced foods.As a result however, we can expect to see much tougher policing ofprovenance-related claims such as “organic”. Difficulties such as avian flu,combined with concern about food miles, are likely to give a substantialboost to food produced close to home.

Sensitivity to the social impact of business activities will also have reachednew levels. Major retailers and manufacturers will place an even higherpriority on understanding how their stores and factories integrate into thelocal economy and community and must be able to demonstrate thepositive nature of that impact. Both retailers and manufacturers face theneed to strike the right balance between ensuring good employment

practices wherever they do business around the world whilst reflectinglocal circumstances as appropriate.

This also extends to sourcing strategies and the employment practices ofsuppliers. We can expect Fairtrade and similar schemes to become muchmore widespread.

The regulatory environment will demand much greater transparency ofinformation about the environmental and social impact of both retailersand manufacturers. Comprehensive “triple bottom line” reporting willincreasingly be the norm, covering the financial, environmental and socialperformance of the business

3. Changing brand equityWhat’s clear is that consumers love brands. However, the brand landscapeis becoming yet more complex. Retailers are now as much in the brandmarketing business as the traditional branded manufacturers. Consumerresearch consistently demonstrates that retailers’ brands are more trustedthan those of food manufacturers, which reinforces the need for themanufacturing segment of the industry to better present its case.

Category Management has changed the brand landscape on supermarketshelves since the early 1990s. The results of such work have usually beenhighly successful in terms of improving business performance and havealmost always led to radical range restructuring and rationalisation.

Some of the outcomes of Category Management have been:

Growth of Private LabelThrough the late 1990s leading retailers themselves increasingly embracedthe principles of Category Management. This has resulted in the virtualelimination of number 3 and 4 brands and significantly more space beingallocated to retailers’ private label products.

Private label products will continue to take a growing percentage ofavailable shelf space making major inroads into many of the areas whichwere once the sole preserve of the branded suppliers. The retailers havecornered some key high growth and high margin categories, fresh chilledready meals are the obvious example, almost to the exclusion of majorbranded suppliers. In addition, private label delivers some excellent lessonsin brand extension and portfolio management. Nowhere is this moreevident than at Tesco, Sainsbury’s and Marks and Spencer with their rangeof value, luxury and healthy sub-brands. For many food manufacturers,the choice of whether (and how) to compete with or embrace privatelabel is a strategic choice which will shape the future development of theirbusinesses.

Fewer brandsAs a result of the continued war for shelf space we predict that there willbe as few as 1,500 brands in the average supermarket in the UK – half thenumber of fifteen years ago. The growing space allocated to non-foodproducts puts further pressure on brand and product ranges.

“There will be a greater focus on animal welfare standards and theprovenance of meat, dairy and other agricultural products. Theconsumer will be willing to pay a premium for high quality,naturally produced foods.”


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Innovative brands and marketingIt is not all doom and gloom for branded suppliers. Retailers continue tolook for innovative new products and categories to meet ever changingconsumer demand. We will undoubtedly continue to see new emerginginnovative brands and products such as Innocent or Walkers Sensations,which will claim significant share of mind and ultimately consumer spend.

Assortment and merchandising In line with the growing multi-cultural society in the UK, we would expectto see more and more assortment and merchandising decisions beinginformed by the tastes and preferences of the local communities that eachretail store supports. Loyalty card programs will continue to offer valuableinsight into which brands and products should be stocked by an individualstore reflecting the different needs of particular demographic and ethnicgroups.

4. Continuing industry consolidationConsolidation will be driven by a number of different dynamics, including:

• Supporting continued successful innovation in all areas

• Acquiring and leveraging innovative concepts developed by smaller,more agile companies

• Attracting and retaining a strong marketing and consumer researchteam in brand-led businesses

• Keeping up with the demands of increasingly complex food safetyrelated regulation

• Achieving more cost effective operations

Scale and industry leadership are key enablers of business success in theseareas. By 2012 we will see substantial further category consolidation,particularly of global brand-led businesses. We will also see otherbusinesses more focused on building strong national brand portfolios,often taking over national food brands that are not viewed as strategicassets by global players. Contract and private label manufacturingbusinesses will also consolidate further to achieve effective economies ofscale.

5. The rise of the hard discountersThe European hard discount movement started in Germany and hasspread widely across Europe. Mainstream grocery retailers struggle to findstrategies that successfully compete with the value proposition offered bycompanies such as Aldi, Lidl and Netto. Their ranges are simple and theprices very keen, with stores typically close to the town centre and offeringeasy parking. Their spread is causing another downward turn of the screwon prices and margins. The hard discounters also present new challengesto brand owners who will need to balance brand and merchandisingvalues with the need for consistent volume. It is likely that leadingbranded manufacturers will do more business with the hard discounters asthe norm going forward.

6. An even tougher regulatory environmentThe high levels of assurance required to ensure the integrity of our foodsupply is very good news for consumers. For suppliers, regulation in areassuch as nutrition labelling, complete removal of hazardous substances,guarantees of traceability and production hygiene practices can be asignificant burden.

This regulatory burden can be expected to grow further and in the futureenforcement will be even more rigorous, most likely directly administeredby the Food Standards Agency rather than through local authorities.Smaller businesses may struggle to keep abreast of the changes, let alonefully comply. This will give added impetus to consolidation.

7. Technology and value chain integrationBy 2012 we will finally be experiencing widespread adoption of muchhyped new technologies such as Radio Frequency Identification andProduct Data Synchronisation in the end-to-end supply chain. This will bedriven by the combined pressures to improve availability on-shelf, takefurther cost out of the supply chain by reducing losses and improvinglabour efficiency, and the need to provide ever higher levels of guaranteesof process integrity and traceability.

We also expect to see real progress in integrating demand and supplyplanning processes across retailer and supplier which will be greatlyfacilitated by the GS1 sponsored alignment of data standards. This willhave significant implications for the business processes and systems ofmanufacturers. It may also lead to the wider benefits of “favouredsupplier” status with key retail customers.


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Ingredients of today– issues

Consumer


• Convenience• Convenience

• Higher quality

• Authenticity and localness (value-for-time)

• More demanding and informed


• Freshness

• More grazing and snacking

Industry

• Increasing pressure on costs

• Lack of connection between brand and comsumer

• Growing regulatory burden

• Growing retailer power

• Sustaining consumer trust

• Attracting and retaining top talent

“The UK is one big melting pot of palates – and this is driving mo re

adventurous eating habits“

A recipe for change

Influences now – 2012

Consumer 2012


• Higher quality and premiumisation

• Stronger convenience

• More demanding e.g. organic variety customisation


• Greater environmental awareness of products e.g. local origin of products, food miles

• More experience driven

• Price-led value

• Exploring new tastes

Industry 2012

• Health and nutrition

• Growing importance of environmental and social factors

• Changing brand equity

• Constant innovation

• Continuing industry consolidation

• The rise of the hard discounters

• An even tougher regulatory environment

• Service excellence

• Technology and value chain integration

• The role of private equity

8. The role of private equityWhy focus on the private equity community when talking about the things that will shape how the industry will look in 2012?

The answer is because it will play a substantial role in some of the changeswe have been talking about. Private equity businesses are focused onopportunities to create value in the medium term. In spite of the manychallenges facing the industry such opportunities do exist, both in groceryretailing and in food and beverage manufacturing.

Given specific business turnaround opportunities, we expect to see privateequity playing a role in the further consolidation of the industry – both inbuilding strong brand portfolios and in accessing the opportunitiespresented by economies of scale. The availability of funds is not aproblem. Private equity may cause businesses to radically challengetraditional operating models. For example, how many branded consumergoods companies will own manufacturing facilities in 2012? The challenge private equity investors face, lies in finding themanagement talent that can develop and execute the strategies that will drive both revenue growth and eliminate unnecessary costs.


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Pillars of success So, against the backdrop of this changing and challenginglandscape, what can food and beverage businesses do to driveprofitable growth and value creation? We strongly believe that thereis real opportunity to create substantial value in the industry. Doingso requires businesses to do three things:

• Make the right strategic choices

• Mobilise to win

• Get the basics right

For most businesses all three are achievible with the rightleadership. In the following paragraphs we offer some thoughtsabout how to approach each of these.

Make the right strategic choicesWhile businesses in food and beverage face many commonchallenges and opportunities, strategy in the industry is not a‘one size fits all’.

For all food and beverage businesses it is important that in thedemanding and competitive markets in which they trade, there isabsolute clarity as to the strategy being pursued and how thatstrategy will be executed. There is no room for ambiguity.

Strategies need to reflect the choices that are right for the businessgiven the available opportunities in the market and the capability ofthe business to exploit those opportunities and thus creating value.These choices include:

• What type of business do you want to be?

• How close are you to your customers and consumers?

• Are you clear about your future category and product portfoliofocus?

• Will you focus on innovation and brand-led organic growth or willyou be proactive in seeking out potential acquisition candidates?

• In what geographies should you operate?

• What channels to market will you exploit?

• What position will you take on the wider corporate responsibilityagenda?

Every business should ask itself these questions and make thechoices that are right for the business. The outcomes will shape thestrategy of the business and determine the capabilities that must bein place to execute that strategy.

Mobilise to winHaving set out a clear strategic direction and vision for the businessthe next priority is to mobilise the organisation around that visionand establish the right capabilities and operating model for effectivestrategy execution. With real challenges in attracting high qualityresources into the industry, focusing on the talent agenda is athread that runs through almost every aspect of mobilising to win.

For most food and beverage businesses this includes:

• Clarity on the required operating model

• Establishing a clear performance management framework aligned to strategic goals

• Investing in leadership and management skills

• Establishing and incentivising employee engagement

• Building and promoting fulfiling careers

• Strengthening commercial insight and decision making

• Re-energising and focusing innovation

• Driving the total value chain not just the supply chain

Get the basics rightIn parallel with mobilising to execute the strategy and driveprofitable growth, most food and beverage businesses need also toaddress a range of tactical and operational issues that are importantto the effective and efficient running of the business.

For most businesses this includes:

• Improving discipline in managing commercial spend

• Adopting excellent sales and operations planning disciplines

• Standardising, strengthening and streamlining operationaland administrative processes

• Eliminating unnecessary complexity

• Retaining key talent


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Pillars of success

The path to success

Make the right strategic choices

Be absolutely clear about ‘where to focus’ based on realunderstanding of the availableprofit pools and realistically achievable capability to exploitthese profit pools.

Mobilise to win

Be equally clear about ‘how to win’ based on targeting the right consumers, through the right channels, with the right products and with value propositions that are relevant to both consumer and channel partner.

Get the basics right

Be relentless about ‘what to do’ in pursuing operational excellencein planning, forecasting, marketingactivation, channel partner investment and supply chain fulfilment, as well as in the ruthless pursuit of business simplification and back office.

“Attracting high quality resources into the industry, and focusingon the talent agenda is a thread that runs through almost everyaspect of mobilising to win.”


As part of our ongoing contribution to the debate of the future ofthe food and beverage industry, and returning to the openingtheme of this document, we have listed a few potential scenarioswhich we believe are likely to appear on the menu.

To start – Products

• Major growth in “nutraceuticals” and wellbeing products, withprice premiums eroded as these become staple items

• Major decline in the number of brands as a result of a greaterstretch amongst brand champions and more and more incursionby private label. Expect some high profile casualties on the shelvesof the major grocers

• Rationalisation of brands in major multiples leads to aninvestment in, and possibly even reappearance of a number ofsecondary brands. These will be supplied via new and innovativechannels and often at a higher margin

To follow – Experiences

• ”Back To The Future” – a return to the food market experiencefor some of the major grocers. Expect to see major diversificationand even the introduction of new fascias depending on location

• A potential shift from the coffee shop culture to an environmentselling more natural products to satisfy consumers’ increasingconcern for healthy and nutritious products

• The re-emergence of the traditional family unit eating together in the home or in non “fast food” restaurants which serve fresh,simple, healthy meals

To finish – Issues

• At least one major brand will disappear due to unforeseencorporate responsibility oversights

• Significant changes in product constitution will mean legallyenforceable limits on salt, sugar and fat contents will either be ineffect or imminent

• Manufacturers will become more focused on the development ofpatented, specialist ingredients and formulations. Such patentedtechnology will provide a key platform for protecting brandpositioning and strength versus private label

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2012: Who can predict the future?Food for thought


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Join the debateThis summary gives a flavour of some of the current issues and potential scenarios highlighted by our research. In the main body of ourreport, which will be launched later in Spring 2007, we will focus in greater depth on the many areas driving change in the food andbeverage sector today. The report will address each area of the food and beverage industry in more detail and translates the issues capturedby the research into practical insight.

We are always keen to engage in discussion with the industry and would be very happy to hear your views.

To join the debate, or for further information about the future of the food and beverage industry please contact one of the team membersbelow or visit www.deloitte.co.uk/foodandbeverage.co.uk

Consumer

Health consciousMore demanding

More adventurous

Brand biased

Local production

More affluent

More value-led

Ageing

Consumptionin-home

Consumptionout-of-home

Authenticitydemanded

Londonvs

Provincial

Home shoppingvs

Store visit

Experience

More casual

Time efficient

More grazing

Customisation

Convenience

Value-for-money

Choice fatigue

Solution-led

Occasion-led

Unplannedpurchasing

Food Service Retail

Distributors,Manufacturersand Suppliers

Distributors,Manufacturersand Suppliers

Adminregulatory

burden

Innovation

New productdevelopment

Cost effciency

Client relationship

Private labelvs

branded

CategoryManagement

Dominantgrocers

Regulation

Crisismanagement

Ethicalimportance

Advertisingeffectiveness

The globalmarketplace

Productavailability

Growingcompetition

Locationalconvenience

Corporate socialresponsibility

Driving costsefficency

Ambience

Strengtheningloyalty

Staffingand

leadershipShopping

convenience

Consistentbrand

delivery

Drivingvalueadded

The food and beverage onion

Richard Lloyd-OwenLead Partner, Consumer [email protected]+44 20 7007 2953

Nigel WixceyLead Partner, Consumer Business [email protected]+44 20 7303 5007

Lawrence HutterGlobal Managing Partner, Consumer [email protected]+44 20 7303 8648

Tim WilsonDirector, Consumer Business [email protected]+44 20 7303 7120

Gerry BoylePartner, Consumer Business [email protected]+44 20 7303 6317

Robin KnightSenior Manager, Consumer Business, Business [email protected]+44 20 7303 4862


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Eat, drink & be ready