Food and Beverage B2B News From Asia
Food and beverage B2B news nowadays is getting more common. The global economic crisis has been felt by most of the food and beverage companies worldwide. The decline too was not unexpected. The only thing was surprising was the slowdown in global sales, though the number of food and beverage companies was still growing. Now, the slowdown is visible and quite significant. The slow down in sales can be traced back to a number of factors and there seems to be a consensus that the slowdown is directly related to the global recession.
Most of the food and beverage companies are facing fierce competition in their core markets and this is directly resulting in a slowing down of overall sales. Revenues at the mid-range market are also seeing a decline, although some believe that the sales decline observed in this segment may be temporary. What is clear is that most of the companies have an overall revenue picture which is bleak when compared to other companies. With most analysts forecasting a continuing decline in the overall sales, the food and beverage b2b companies are faced with decisions regarding what to do.
It is common knowledge that beverage companies depend on fast food chains for their market share. However, fast food chains are not happy with this arrangement for obvious reasons. For one, they are losing a lot of money as they buy the products from the fast food giants at exorbitant prices. Further, the overall profit margins for such purchases are very slim since the selling cost per unit is very high.
This has led many beverage companies to look for new markets. Apart from the US, many companies are looking to enter the emerging Asian markets like China, which is a major consumer of packaged foods. The other part of Asia is also an important area for food and beverage companies. Some of the companies have made strategic alliances with Middle Eastern food businesses.
In fact, there is a consensus that the overall sales in this segment have been flat or slightly declining in the recent past. However, this does not mean that the profits have come down. Many of these food and beverage companies are making considerable investments in research and development as they look to improve their overall performance. It is expected that the overall sales for the companies will increase only slowly over the coming years.
In fact, some of the food companies have already started to introduce new products in the market. This is good news for consumers because they can choose from a variety of food and beverages to suit their taste preferences and needs. The companies have also started to expand into the international market. They are targeting major economies such as China and the Middle East. The food and beverage industry has the potential to expand its market share further in the coming years.