Global Beverage Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies

Published: May 2012

Publisher: Canadean Ltd

Product ref: 138692

Pages: 124

Format: PDF

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Price: $ 2000.00

Report description

Product Synopsis
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.

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.

Key Highlights
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.

Table of contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Methodology
1.4 Profile of Survey Respondents
1.4.1 Profile of buyer respondents
1.4.2 Profile of supplier respondents
2 Executive Summary
3 Global Beverage Industry Dynamics
3.1 Revenue Growth Projections in the Global Beverage Industry
3.1.1 Revenue growth projections by beverage manufacturers
3.1.2 Revenue growth projections by suppliers
3.1.3 Revenue growth projections by region
3.1.4 Revenue growth projections by turnover
3.1.5 Revenue growth projections by senior level respondents
3.1.6 Company revenue growth optimism: cross industry comparison
3.2 Future Developments in Business Structure: Global Beverage Industry
3.2.1 Future developments in business structure by beverage manufacturers
3.2.2 Future developments in business structure by suppliers
3.2.3 Future developments in business structure by region
3.2.4 Future developments in business structure by company turnover
3.2.5 Future developments in business structure by senior level respondents
3.3 Merger and Acquisition (M&A) Projections: Global Beverage Manufacturers’ Industry
3.3.1 M&A activity projections by beverage manufacturers
3.3.2 M&A activity projections by suppliers
3.3.3 Merger and acquisition activity projections by region
3.3.4 Merger and acquisition activity projections by company turnover
3.4 Capital Expenditure Forecast: Global Beverage Manufacturers’ Industry
3.4.1 Forecast of capital expenditure by beverage manufacturers
3.4.2 Forecast of capital expenditure by suppliers
3.4.3 Forecast of capital expenditure by region
3.4.4 Forecast of capital expenditure by company turnover
3.5 Planned Change in Staff Recruitment: Global Beverage Manufacturers’ Industry
3.5.1 Planned change in staff recruitment by beverage manufacturers
3.5.2 Planned change in staff recruitment by suppliers
3.5.3 Planned change in staff recruitment by region
3.5.4 Planned change in staff recruitment by company turnover
4 Global Beverage Maufacturers’ Market Growth Outlook
4.1 Global Beverage Manufacturers’ Industry: Demand in Emerging Markets
4.1.1 Demand in emerging markets by beverage manufacturers
4.1.2 Demand in emerging markets by suppliers
4.1.3 Demand in emerging markets by region
4.1.4 Demand in emerging markets by company turnover
4.2 Global Beverage Manufacturers’ Industry: Growth in Developed Markets
4.2.1 Growth expectations in developed countries by beverage manufacturers
4.2.2 Growth expectations in developed countries by suppliers
4.2.3 Growth expectations in developed countries by region
4.2.4 Growth expectations in developed countries by company turnover
5 Threats and Opportunities: Global Beverage Manufacturers’ Industry
5.1 Global Beverage Manufacturers’ Industry: Leading Business Concerns for 2012–2013
5.1.1 Leading business concerns of beverage manufacturers
5.1.2 Leading business concerns of suppliers
5.1.3 Leading business concerns in 2012–2013 by region
5.1.4 Leading business concerns in 2012–2013 by company turnover
5.2 Global Beverage Manufacturing Industry: Key Supplier Actions to Secure Business
5.2.1 Actions to maintain and secure business by beverage manufacturers
5.2.2 Actions to maintain and secure buyer business by region
5.2.3 Actions to maintain and secure buyer business by turnover
5.2.4 Actions to maintain and secure buyer business by procurement budget
6 Global Beverage Manufacturers’ Industry Buyer Spend Activity
6.1 Annual Procurement Budgets in the Global Beverage Manufacturers’ Industry
6.1.1 Annual procurement budgets by beverage manufacturers
6.1.2 Revenue growth vs. annual procurement budget
6.1.3 Annual procurement budgets by region
6.1.4 Annual procurement budgets by company turnover
6.2 Global Beverage Manufacturers’ Industry: Change in Procurement Expenditure
6.2.1 Planned change in procurement expenditure by beverage manufacturers
6.2.2 Planned change in procurement spend by region
6.2.3 Planned change in procurement spend by company turnover
6.2.4 Planned change in procurement expenditure: cross industry comparison
6.3 Planned Change in Procurement Expenditure by Product and Service Category
6.3.1 Planned change in expenditure by product and service category – beverage manufacturers
6.3.2 Planned change in expenditure by product and service category by region
6.3.3 Planned change in expenditure by product and service category by turnover
6.4 Global Beverage Manufacturers’ Industry: Variations in Regional Supplier Prices
6.4.1 Variations in regional supplier prices by beverage manufacturers
6.4.2 Variations in regional supplier prices by region
6.4.3 Variations in regional supplier prices by company turnover
7 Global Beverage Manufacturers: Procurement Behaviors and Strategies
7.1 Critical Success Factors for Supplier Selection
7.1.1 Critical Success Factors for Supplier Selection by beverage manufactures
7.2 Future Procurement Objectives in the Global Beverage Manufacturers’ Industry
7.2.1 Future Procurement Objectives by beverage manufactures
7.2.2 Future procurement objectives by region
7.2.3 Future procurement objectives by company turnover
7.3 E-Procurement in the Global Beverage Manufacturers’ Industry
7.3.1 E-procurement in the global beverage manufacturers’ industry
7.3.2 E-procurement by region
7.3.3 E-procurement by company turnover
8 Appendix
8.1 Survey Results – Closed Questions
8.2 About Canadean
8.3 Disclaimer


List of Tables
Table 1: Total Global Beverage Manufacturers' Industry Survey Respondents, 2012
Table 2: Global Beverage Manufacturers’ Industry Respondents by Job Role (%), 2012
Table 3: Global Beverage Manufacturers' Industry Respondents by Region (%), 2012
Table 4: Global Beverage Manufacturers' Industry Respondents by Company Turnover (%), 2012
Table 5: Global Beverage Industry Supplier Respondents by Job Role (%), 2012
Table 6: Global Beverage Industry Supplier Respondents by Region (%), 2012
Table 7: Global Beverage Industry Supplier Respondents by Company Turnover (%), 2012
Table 8: Revenue Growth Optimism in the Global Beverage Manufacturers' Industry (%), 2010–2012
Table 9: Revenue Growth Optimism of Global Beverage Industry Suppliers (%), 2012
Table 10: Global Beverage Manufacturers' Industry: Revenue Growth Optimism by Region (%), 2012
Table 11: Global Beverage Manufacturers’ Industry: Revenue Growth Optimism by Turnover (%), 2012
Table 12: Global F&B Industry: Revenue Growth Optimism of Senior Level Respondents (%), 2012
Table 13: Key Expected Changes in Business Structure: Global Beverage Manufacturers (%), 2012
Table 14: Key Expected Changes by Global Beverage Industry Suppliers (%), 2012
Table 15: Global Beverage Manufacturers' Industry: Key Expected Changes by Region (%), 2012
Table 16: M&A Activity in the Global Beverage Manufacturers' Industry (%), 2010–2012
Table 17: M&A Activity by Global Beverage Industry Suppliers (%), 2010–2012
Table 18: M&A Activity by Region: Global Beverage Manufacturers' Industry (%), 2012
Table 19: M&A Activity by Turnover: Global Beverage Manufacturers' Industry (%), 2012
Table 20: Forecast of Capital Expenditure by Global Beverage Manufacturers' Industry (%), 2012
Table 21: Forecast of Capital Expenditure by Global Beverage Industry Suppliers (%), 2012
Table 22: Global Beverage Manufacturers' Industry: Forecast of Capital Expenditure by Region (%), 2012
Table 23: Global Beverage Manufacturers' Industry: Forecast of Capital Expenditure by Turnover (% ‘Increase’ Responses), 2012
Table 24: Global Beverage Manufacturers' Industry: Planned Change in Staff Recruitment (%), 2012
Table 25: Planned Change in Staff Recruitment by Global Beverage Industry Suppliers (%), 2012
Table 26: Global Beverage Manufacturers: Planned Change in Staff Recruitment by Region (%), 2012
Table 27: Global Beverage Manufacturers: Planned Change in Staff Recruitment by Turnover (%), 2012
Table 28: Demand in Emerging Markets: Global Beverage Manufacturers' Industry (%), 2012
Table 29: Demand in Emerging Markets: Global Beverage Industry Suppliers (%), 2012
Table 30: Growth Projections in Developed Markets: Global Beverage Manufacturers (%), 2012
Table 31: Growth Projections in Developed Markets by Global Beverage Industry Suppliers (%), 2012
Table 32: Leading Business Concerns of Global Beverage Manufacturers (%), 2010–2012
Table 33: Leading Business Concerns of Global Beverage Industry Suppliers (%), 2012–2013
Table 34: Global Beverage Manufacturers: Leading Business Concerns by Region (%), 2012–2013
Table 35: Global Beverage Manufacturers: Leading Business Concerns by Turnover (%), 2012–2013
Table 36: Global Beverage Manufacturers: Securing Beverage Manufacturers’ Business (%), 2012
Table 37: Global Beverage Manufacturers' Industry: Securing Buyers’ Business by Region (%), 2012
Table 38: Global Beverage Manufacturers' Industry: Securing Buyers’ Business by Turnover (%), 2012
Table 39: Actions to Maintain and Secure Buyer Business by Procurement Budget (%), 2012
Table 40: Global Beverage Manufacturers’ Industry: Annual Procurement Budgets in US$ (%), 2010–2012
Table 41: Global Beverage Manufacturers: Increase in Revenue Growth vs. Procurement Budget (%), 2012
Table 42: Global Beverage Manufacturers: Annual Procurement Budgets in US$ by Region (%), 2012
Table 43: Global Beverage Manufacturers: Annual Procurement Budgets in US$ by Turnover (%), 2012
Table 44: Global Beverage Manufacturers: Change in Total Procurement Expenditure (%), 2012
Table 45: Global Beverage Manufacturers’ Industry: Procurement Expenditure by Region (%), 2012
Table 46: Global Beverage Manufacturers’ Industry: Procurement Expenditure by Turnover (%), 2012
Table 47: Planned Change in Procurement Expenditure: Cross Industry Comparisons (%), 2012
Table 48: Global Beverage Manufacturers: Change in Spend on Products and Services (%), 2012
Table 49: Global Beverage Manufacturers: Variations in Regional Supplier Prices (%), 2012
Table 50: Global Beverage Manufacturers: Variations in Regional Supplier Prices by Region (%), 2012
Table 51: Global Beverage Manufacturers: Variations in Regional Supplier Prices by Turnover (%), 2012
Table 52: Critical Success Factors for Supplier Selection: Global Beverage Manufacturers vs. Suppliers (Index Score), 2012
Table 53: Global Beverage Manufacturers: Future Procurement Objectives (%), 2012
Table 54: Global Beverage Manufacturers’ Industry: Future Procurement Objectives by Region (%), 2012
Table 55: Global Beverage Manufacturers: Future Procurement Objectives by Turnover (%), 2012
Table 56: Global Beverage Manufacturers: Implementation of E-Procurement (%), 2012
Table 57: Global F&B Industry: Procurement Budget Increase vs. E-Procurement (%), 2012
Table 58: Global Beverage Manufacturers’ Industry: E-Procurement by Region (%), 2012
Table 59: Survey Results - Closed Questions


List of Figures
Figure 1: Revenue Growth Optimism in the Global Beverage Manufacturers' Industry (%), 2010–2012
Figure 2: Revenue Growth Optimism of Global Beverage Industry Suppliers (%), 2012
Figure 3: Global Beverage Manufacturers' Industry: Revenue Growth Optimism by Region (%), 2012
Figure 4: Global Beverage Manufacturers’ Industry: Revenue Growth Optimism by Turnover (%), 2012
Figure 5: Global F&B Industry: Revenue Growth Optimism of Senior Level Respondents (%), 2012
Figure 6: Company Revenue Growth Optimism: Cross Industry Comparisons (%), 2012
Figure 7: Key Expected Changes in Business Structure: Global Beverage Manufacturers (%), 2012
Figure 8: Key Expected Changes by Global Beverage Industry Suppliers (%), 2012
Figure 9: Key Expected Changes In Business Structure by Senior Level Respondents (%), 2012
Figure 10: M&A Activity in the Global Beverage Manufacturers' Industry (%), 2010–2012
Figure 11: M&A Activity by Global Beverage Industry Suppliers (%), 2010–2012
Figure 12: M&A Activity by Region: Global Beverage Manufacturers' Industry (%), 2012
Figure 13: M&A Activity by Turnover: Global Beverage Manufacturers' Industry (%), 2012
Figure 14: Forecast of Capital Expenditure by Global Beverage Manufacturers' Industry (%), 2012
Figure 15: Forecast of Capital Expenditure by Global Beverage Industry Suppliers (%), 2012
Figure 16: Global Beverage Manufacturers' Industry: Forecast of Capital Expenditure by Region (%‘Increase’ Responses), 2012
Figure 17: Global Beverage Manufacturers' Industry: Forecast of Capital Expenditure by Turnover (%‘Increase’ Responses), 2012
Figure 18: Global Beverage Manufacturers' Industry: Planned Change in Staff Recruitment (%), 2012
Figure 19: Planned Change in Staff Recruitment by Global Beverage Industry Suppliers (%), 2012
Figure 20: Global Beverage Manufacturers: Planned Change in Staff Recruitment by Region (%), 2012
Figure 21: Global Beverage Manufacturers: Planned Change in Staff Recruitment by Turnover (%), 2012
Figure 22: Global Beverage Manufacturers’ Industry: Top Ten Growth Regions (%), 2012
Figure 23: Global Beverage Manufacturers’ Industry: Top Five Emerging Markets, 2012
Figure 24: Demand in Emerging Markets: Global Beverage Manufacturers' Industry (%), 2012
Figure 25: Demand in Emerging Markets: Global Beverage Industry Suppliers (%), 2012
Figure 26: Demand in Emerging Markets by Region: Global Beverage Manufacturers' Industry (%), 2012
Figure 27: Demand in Emerging Markets by Turnover: Global Beverage Manufacturers' Industry (%), 2012
Figure 28: Global Beverages Manufacturers’ Industry: Top Five Developed Markets by Growth, 2012
Figure 29: Growth Projections in Developed Markets: Global Beverage Manufacturers (%), 2012
Figure 30: Growth Projections in Developed Markets by Global Beverage Industry Suppliers (%), 2012
Figure 31: Growth Projections in Developed Markets by Region (% 'Increase' Responses), 2012
Figure 32: Growth Projections in Developed Markets by Turnover (% 'Increase' Responses), 2012
Figure 33: Leading Business Concerns of Global Beverage Manufacturers (%), 2012–2013
Figure 34: Global Beverage Manufacturers’ Industry: Leading Business Concerns , 2012–2013
Figure 35: Leading Business Concerns of Global Beverage Industry Suppliers (%), 2012–2013
Figure 36: Global Beverage Manufacturers: Securing Beverage Manufacturers’ Business (%), 2012
Figure 37: Global Beverage Manufacturers' Industry: Securing Buyers’ Business by Turnover (%), 2012
Figure 38: Global Beverage Manufacturers’ Industry: Annual Procurement Budgets in US$ (%), 2012
Figure 39: Global Beverage Manufacturers: Annual Procurement Budgets in US$ by Region (%), 2012
Figure 40: Global Beverage Manufacturers: Annual Procurement Budgets in US$ by Turnover (%), 2012
Figure 41: Global Beverage Manufacturers: Change in Total Procurement Expenditure (%), 2012
Figure 42: Global Beverage Manufacturers’ Industry: Procurement Expenditure by Region (%), 2012
Figure 43: Global Beverage Manufacturers’ Industry: Procurement Expenditure by Turnover (%), 2012
Figure 44: Global Beverage Manufacturers: Change in Spend on Products and Services (%), 2012
Figure 45: Global Beverage Manufacturers: Expenditure on Products and Services by Region (%), 2012
Figure 46: Global Beverage Manufacturers: Expenditure on Products and Services by Turnover (%), 2012
Figure 47: Global Beverage Manufacturers: Variations in Regional Supplier Prices (%), 2012
Figure 48: Global Beverage Manufacturers: Variations in Regional Supplier Prices by Region (%), 2012
Figure 49: Global Beverage Manufacturers: Variations in Regional Supplier Prices by Turnover (%), 2012
Figure 50: Critical Success Factors for Supplier Selection: Global Beverage Manufacturers vs. Suppliers (Index Score), 2012
Figure 51: Global Beverage Manufacturers: Future Procurement Objectives (%), 2012
Figure 52: Global Beverage Manufacturers: Implementation of E-Procurement (%), 2012
Figure 53: Global Beverage Manufacturers’ Industry: E-Procurement by Region (%), 2012
Figure 54: Global Beverage Manufacturers' Industry: E-Procurement by Turnover (%), 2012

Price: $ 2000.00

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By market: Global