Food and Beverage: Introduction
Companies in this segment produce carbonated and noncarbonated soft drinks, bottled water, ice, and alcoholic beverages.
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.
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
- Efficient operations, because products are commodities subject to intense price competition
From the Blog
While many businesses have suffered due to the impacts of the COVID-19 pandemic, some industries have seen extraordinary growth. With legislation limiting or preventing the ability of restaurants to host guests, the demand for take-out and delivery options has risen dramatically. The food-delivery industry experienced record levels of growth throughout 2020. The top four companies accumulated around $5.5 billion dollars in revenue in the seven months following the beginning of the first lockdowns. This dwarfed the $2.5 billion dollars of revenue from one year prior over the same period.
As the days continue to get colder and darker, many Americans flock to the grocery store to prepare for Thanksgiving dinner. Families gather to celebrate with turkey, potatoes, pumpkin pie, parades, and football. The holiday is commemorative of the original feast between Pilgrims and Native Americans. While Thanksgiving has been a national holiday in the United States since the Civil War, many other countries have their own version of Thanksgiving.
- Hoovers (Date Accessed: 6/1/2017)