Segments

Beverage

Companies in this segment produce carbonated and noncarbonated soft drinks, bottled water, ice, and alcoholic beverages.

Dairy

Companies in this segment manufacture dairy-based products from both raw and processed milk, as well as dairy substitutes.

Fruits and Vegetables

Companies in this segment distribute fresh fruits, vegetables, spices, and herbs. The main task of distributors is to get the fruit and vegetables from producers to customers, including both food retailers and foodservice providers.

Grain

In this segment, companies mill flour and rice, malt grains, and mixed prepared flour mixes and dough. Major products include flour, rice, and malted grains.

Meat, Poultry, and Seafood

Major products in this segment are wholesale meat products that will be cut or processed further, ground beef for commercial use, and "case-ready" items for retail use.

Sugar and Confectionery

Companies in this segment produce raw sugar from sugar cane, refine raw cane sugar, and produce refined beet sugar from sugar beets. The most widely used product for sugar manufacturers is refined sugar for both industrial and consumer use.

The Food and Beverage industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.


Primary Demand Drivers

  • Food consumption
  • Population growth

Profitability Drivers

  • Efficient operations, because products are commodities subject to intense price competition

From the Blog Blog RSS

Oktoberfest is an annual festival in Munich, Germany, consisting of traditional Bavarian music, parades, wagons, carnival rides, food, and drinks. It originated over 210 years ago and was inspired by the celebration of Princess Therese von Sachsen-Hildburghausen's marriage to the Crown Prince of Bavaria, who later became King Louis I. Since then, it has only been canceled 24 times due to political climates during wars.

Japanese 7-Eleven products have been brought to the U.S. As 7-Eleven CEO Ryuichi Isaka stated, the decision was to “change (their) business model from one that relies on gasoline and cigarettes to one in which customers choose us based on (their) products.” 

Sources

  1. Hoovers (Date Accessed: 6/1/2017)