What Are Food Companies Doing To Stimulate Growth?
By Isaac Fletcher, contributing writer, Food Online
Thanks to technology and innovation, food and beverage manufacturers are now better equipped than ever before to meet the various demands and preferences of consumers. Food companies are also seeking ways to leverage these tools to spur market growth
Domestic manufacturing is on the rise, and the food and beverage markets are critical elements driving this renewed growth. The industry has always witnessed a large number of mergers and acquisitions, but the M&A report from The Food Institute indicates strong, increasing growth. For example, during 2014 alone, brands like Tyson Foods and Hillshire completed a merger and Proctor & Gamble’s pet food business was acquired by Mars, Inc.
Other food manufacturers are gaining traction in the market by means of expansion to be located closer to key customers and meet new demands in various regions. Champion Petfoods of Canada is bringing a new kitchen and distribution facility to the U.S. in an effort to meet the growing demand for its products. Likewise, as the result of increasing sales, Mars announced plans to expand its existing Illinois manufacturing plant to incorporate the production of Skittles.
Aside from mergers, acquisitions, and expansions, some manufacturers employ the strategy of new product launches to gain market share. Keurig Green Mountain made an announcement that it will open a facility in Georgia to produce a new system called Keurig Cold. The company hopes it can use its past success with its hot brewing system as a springboard to launch its new product line.
On the consumer side of things, a preference for organic, healthy, and convenient food options has opened the door to new opportunities for food processors. As manufacturers discover innovative production methods and launch new products to accommodate shifting customer preferences, the industry experiences healthy growth.
The market drivers mentioned above have been crucial in spurring growth in the food and beverage markets, but technology and innovation have been instrumental in facilitating these drivers. One example of this is 3D printing, otherwise known as additive manufacturing, which has provided new benefits and efficiencies to the manufacturing process. Not only does the technology improve production, it also enables companies to gain a better understanding of the ways in which its future factories and facilities are being constructed. With the ability to easily 3D print an architectural model, companies can discover and adjust possible issues and better visualize how the final facility will look.
Virtual Reality (VR) is helping to achieve a similar goal. Through the use of VR goggles, clients can step into a virtual rendering of their facility before construction begins. In doing so, they can detect and address potential problem areas and gain a profound understanding of the facility, inside and out.
With these elements integrated into building design and construction, food and beverage manufacturers are granted unprecedented levels of control with regard to meeting safety goals, preventing costly facility updates, and providing the end consumer with desirable products.