Hyderabad, Andhra Pradesh -- (SBWIRE) -- 05/24/2012 -- Product Synopsis: ReportReserve Announces the inclusion of its new report in Food,Beverage & Tobacco Industry.“Global Beverage Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies” is a new report by Canadean that analyzes how global beverage manufacturer 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 beverage manufacturing industry. The report also identifies future growth of beverage manufacturers and suppliers, M&A, and e-procurement in the global beverage manufacturing industry. This report not only grants access to the opinions and strategies of business decision makers and competitors in the global beverage manufacturers’ industry, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and size.
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 beverage manufacturer industry executives. The report provides data and analysis on buyer expenditure, procurement, and developments within the global beverage manufacturers’ industry. This report includes key topics such as global beverage manufacturers’ industry expenditure, and procurement behaviors and strategies. This report identifies the threats and opportunities within the global beverage manufacturing industry, economic outlook trends, and business confidence within global beverage manufacturer 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 beverage manufacturers’ industry.
What is the current market landscape and what is changing?
Executives from global beverage manufacturer companies expect some increase in levels of consolidation in their industry over the next 12 months, with 46% of respondents anticipating at least some increase in M&A activity. Furthermore, 42% of respondents expect ‘no change’ in M&A activity over the next 12 months. However, the expectations of consolidation levels among the global beverage manufacturer respondents has diminished by 15 percentage points in comparison to 2011, and nine percentage points in comparison to 2010.
What are the key drivers behind recent market changes?
Projections of relatively stagnant consolidation levels in 2012 are a direct repercussion of incessant M&A activity during the second and third quarter of 2011, such as the Coca-Cola FEMSA merger with Grupo Tampico, Mexico, in June 2011, and Heineken’s acquisition of two Ethiopian breweries, Bedele and Harar in August 2011. In addition, respondents who anticipate some increase in consolidation levels highlight reasons such as the need to manage new cost or demand pressures, repay debts, comply with procedures, reduce operational expenses, and attain economies of scale.
What makes this report unique and essential to read?
“Global Beverage Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies” is a new report by Canadean that analyzes how global beverage manufacturer 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 beverage manufacturing industry. The report also identifies future growth of beverage manufacturers and suppliers, M&A, and e-procurement in the global beverage manufacturing industry. This report not only grants access to the opinions and strategies of business decision makers and competitors in the global beverage manufacturers’ industry, 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 the key actions required to maintain and win beverage manufacturers 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 beverage manufacturer industry respondents identify China to be the most important region for growth among emerging markets, along with India and Brazil. Furthermore, Eastern Europe and the Middle East are considered the two most important emerging markets by respondents from beverage manufacturing companies. The majority of global beverage manufacturers identify China as offering the largest growth potential among emerging markets over the next 12 months. The majority of beverage manufacturers plan to foray into the Chinese market to expand their operations, as a result of increased consumption of branded beverages such as wine, beer, coffee, juice, and dairy products among Chinese consumers. In India, the consumption of beer, whisky, and wine have benefited from economic growth and strong demand from middle-class consumers, which has encouraged beverage manufacturers to tap into the Indian market.
Among beverage manufacturers, 65% of respondents rate ‘responding to pricing pressure’ as the most important business concern in 2012, while 48% highlight ‘market uncertainty’. Beverage manufacturers highlight factors such as weather disruptions, lower shelf prices, and rising commodity prices as pricing pressure issues. Regardless of region, ‘responding to pricing pressure’ is identified as the leading business concern in 2012. Furthermore, respondents from companies with leading operations in North America and the Rest of the World region identify ‘regulatory change’ and ‘rising competition’ as leading business concerns in 2012, while ‘market uncertainty’ and ‘cost containment’ are identified as the leading business concerns by respondent companies operating in Europe and Asia-Pacific region.
The average size of the global annual procurement budget among beverage manufacturer industry respondents is forecast at US$197.5 million for 2012. A comparison of global procurement budgets by operating region shows that global beverage manufacturer industry buyers with leading operations in the Rest of the World have the highest average procurement budgets in 2012, at US$265.1 million.
‘Quality’, ‘price’, and ‘level of service’ are considered important factors for supplier selection in the global beverage manufacturing industry, while ‘supplier’s environmental record’, the ‘proximity of supplier operations’, and ‘supplier’s CSR reputation’ are considered the least important. Beverage manufacturer 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 beverage manufacturing sector is expected to be fuelled by increased consumer demand towards health and wellness oriented beverage products, and the adoption of sustainable sourcing strategies by beverage companies.
An analysis of responses by beverage 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.
Global beverage manufacturer respondents consider Singapore, Taiwan and Hong Kong, the US, and Australia to offer the largest growth potential among developed markets over the next 12 months. Furthermore, South Korea and Canada are identified as other developed markets with high growth potential in 2012.
50% of beverage manufacturer respondents project an increase in investment toward ‘new product development’. In order to synchronize with market growth, beverage manufacturer companies plan to spend considerable amount on the development of new products. For example, in February 2012, NourishCo, the joint venture between Tata Global Beverages and PepsiCo India, launched a new packaged water brand, Tata Water Plus, in India. The company has already invested around US$10.07 million in the new product and will make more investments in 2012.
Global beverage industry suppliers plan to increase capital expenditure on ‘new product development’ over the next 12 months. Supplier companies are concentrating on the development of new products with enhanced product quality, extended shelf life, and a focus on health and safety of products. For example, in January 2012, Key Technology, a supplier of machinery, 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 33% of respondents from beverage manufacturing companies, headcounts in their organizations in 2012 are expected to increase steadily by up to 2%. However, 36% of respondents 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-beverage-survey-2012%E2%80%932013-industry-dynamics-market-trends-and-opportunities-buyer-spend-and-procurement-strategies-report-538341