A multi trillion-dollar food industry is dominated by established companies with global brand recognition. However, pressures are converging to disrupt and are forcing change.  Demand patterns are changing with pressure to deliver to new, emerging and powerful markets including China who may, in future years, move beyond sourcing from abroad to develop capabilities further up the value chain. Despite this trend, one third of Food produced globally is lost or wasted. Further changes, led by both informed consumers and health authorities, highlight the relationship between food and personal health. Plant based, non-GMO, organic, and gluten-free foods are expected to increase 21% within the next 5 years. New ingredients and new ranges of products must be developed to meet changing requirements.

This extends further into food products and the carbon footprint within the supply chain. Some products are generating significant carbon. Labour supply in key supply markets is also likely to disrupt affecting key activities such as fruit picking.  The ability to meet demand is also threatened.

All of this comes at a cost and does not even factor in some of the larger macro-economic considerations including Brexit/tariffs.  Competitiveness will be a challenge for some companies as the cost to innovate and transform may stretch them too far.

The role of The Clearview Group

Procurement must be equipped and ready to support the business to develop and implement new food products, and to configure new supply chains and solutions.  Not only will they need to change what they source and the supply chains, but how they source and manage their suppliers. Supply, pricing, currency and a range of other considerations including carbon/traceability and other ESG factors will come into play. 

We have worked with several international food companies ranging from dairy, to beef, baked goods, and drinks/beverages. 

Clearview supported them with their sourcing programmes to identify alternative sources of supply to generate competition and supported the tendering process including the execution of managed e-auctions to extract additional value. 

More fundamentally we aided a leading international food company to challenge and redefine their category hierarchy for direct and indirect goods and services. This fundamentally changed the scope of categories and their sourcing plans as they considered changes to the market footprint and product portfolio. With the same client we developed a model to segment and tier their supply base as part of a broader SRM programme. This focused on driving improved performance, value and innovation from the supply base, while also targeting and mitigating risk 

As part of our efforts to both develop our ESG capabilities (in the context of Category Planning and SRM) and our need to shape our SeeR technology Clearview developed a beef industry life cycle hybrid model for our client, an international food brand. Our team was able to scope out the organisation’s carbon footprint boundary and activities from farm to production gate. The relevant usage and carbon data were then collated and analysed in conjunction with Origin Green. We modelled the carbon footprint for a single MAP product, including conducting a sensitivity analysis for changing conditions.

Edelman Global Food and Beverage Trends

Global Food & Beverage Trends