Over the last couple of years, one industry has received more negative press than others: the food and drink manufacturing industry. A recent study1 suggests that just 7 in 10 people have confidence in food safety now compared with 9 in 10 before the horsemeat scandal.
As manufacturers begin to tighten up quality control processes and increase their spending on achieving compliance with various legislation madates, margins have never been tighter. A study by BDO2 noted that margins within the industry are being placed under greater pressure each week with 83% of food manufacturers experiencing similar or worsened operating margins in comparison to 2012.
So what can food and drink manufacturers do? What actions can they take? The only way to compete is to be cheaper or be different, right? And this requires investment.
1 Which?, Future of Food Report, 2013
2 BDO, Food and Drink Report, 2014