GLOBAL: Soaring commodity costs to hit all sectors - study
Producers will continue to face commodity price pressures in 2013
Rising commodity costs this year will leave drinks companies “thirsting for growth”, a new report has claimed.
Rabobank's Global Beverage Outlook study, released today (30 January), warns that companies must ensure "security of supply" and develop an integrated supply chain to guard against price fluctuations. Manufacturers can no longer afford to focus solely on lowest price when buying commodities, the report said.
“Rising commodity costs will impact all drink segments and likely force beverage companies to raise prices at a time when consumers are already under economic pressure,” the report said.
“Faced with narrowing margins, those beverage companies that have a vision and commitment to engage in strategic sourcing will have a competitive advantage in 2013 and beyond.”
The wine industry will face tighter global inventories, forcing suppliers to be more flexible while waiting for inventories to bounce back, the report said. Juice suppliers, meanwhile, will move to secure supplies through investment in growers or ingredient substitution, according to the study.
For beer, the report predicted that the sector will post the slowest growth this year compared to other beverage categories, driven by market saturation and health concerns.
Spirit consumption in Western Europe is also expected to wane, the report said.
A Rabobank report in October said demand for wine in the US is growing and helping to balance out long-term oversupply issues.
The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe and slow economic recovery in the US. It is actively expanding in low calorie carbonat...
Although AG Barr was on its way to the church earlier this month, Britvic was still having second thoughts. The end of the affair leads Richard Corbett to ponder what went wrong for the two and what h...
Ranked sixth in hot drinks in 2012, the company has a strong presence in other hot drinks, in particular in chocolate-based flavoured powder drinks under the Toddy brand. Competing for the same target...
PepsiCo China Ltd is seeking sustainable growth by enhancing brand awareness around the world and bringing innovative products to the marketplace....
In 2012, Cía de Bebidas Pepsico continued to adapt to the gloomy economic climate by holding back prices, offering its core carbonates brands at lower retail prices than its main competitor Cía Servic...
- Bacardi Seeks Own History at Bombay Sapphire Home
- NPD: The Craft Cocktail Revolution
- No Home Comfort for TWE as Bids Collapse
- Private-equity bids "over" - TWE head
- Interview - WoSA chief executive
- Suntory Holdings to split beer, spirits division
- Diageo's Smirnoff Sours
- Anheuser-Busch InBev appoints new AmBev CEO
- Carlsberg suspends production at Russian brewery
- Treasury Wine Estates pulls plug on takeover talks