1 Table of Contents 2
1.1 List of Tables 4
1.2 List of Figures 7
2 Introduction 10
2.1 What is This Report About? 10
2.2 Methodology 10
2.3 Profile of Survey Respondents 11
3 Executive Summary 15
The Food and Drinks Manufacturing Industry Is Generally Optimistic About the Recovery of the Global Economy 15
Buyers in the Industry Are More Optimistic About Revenue Growth than Suppliers 15
Food and Drinks Manufacturing Companies Will Be Increasing Procurement Spend Over the Next 12 Months 15
Industry Players Face a Number of Key Challenges Due to the Recession 17
Suppliers Must Update Their Knowledge of Buyer Needs During the Periods of Recession and Recovery 17
4 Economic Outlook and Confidence 18
4.1 Global Economy Recovery Expectations 18
4.2 Revenue Growth Expectations 23
5 Global Food and Drinks Industry Investment Outlook 29
5.1 Fastest and Slowest Growing Markets 29
5.2 M&A Activity Predictions 39
5.3 Suppliers’ Industry Outlook 44
6 Recession and Recovery: Threats and Opportunities for the Food and Drinks Manufacturing Industry 48
6.1 Leading Business Concerns Due to Recession 48
6.2 Key Actions to Overcome Business Threats 53
6.3 Key Actions to Maintain and Win Buyer Business 57
6.4 Leading Recession Related Business Opportunities 66
7 Food and Drinks Manufacturing Industry Buyer Spend Activity 70
7.1 Annual Procurement Budgets 70
7.2 Expected Change in Procurement Spend 77
7.3 Expected Change in Spend by Product and Service Category 84
8 Procurement Behaviors and Strategies and the Impact of Recession 93
8.1 Critical Success Factors for Supplier Selection 93
8.2 Current Effects of Recession on Procurement Objectives 100
8.3 Expected Future Effects of Recession on Procurement Objectives 105
8.4 The Effects of Recession on Procurement Strategy 111
9 Appendix 121
9.1 Full Survey Results-Closed Questions 121
9.2 Methodology 129
9.3 Contact Us 130
9.4 About Global Markets Direct 130
9.5 Disclaimer 13
1.1 List of Tables
Table 1: Count of Global Food and Drinks Manufacturing Industry Survey Respondents by Company Type (Number Of Respondents), 2009 Industry Survey 11
Table 2: Buyer Respondents by Job Role (% Buyer Respondents), Global Food and Drinks Manufacturing Industry, 2009 11
Table 3: Buyer Respondents by Organization’s Global Turnover (% Buyer Respondents), Global Food and Drinks Manufacturing Industry, 2009 12
Table 4: Buyer Respondents by Organization’s Total Employee Size (% Buyer Respondents), Global Food and Drinks Manufacturing Industry, 2009 12
Table 5: Supplier Respondents by Job Role (% Supplier Respondents), Global Food and Drinks Manufacturing Industry, 2009 13
Table 6: Supplier Respondents by Organization’s Global Turnover (% Supplier Respondents), Global Food and Drinks Manufacturing Industry, 2009 13
Table 7: Supplier Respondents by Organization's Total Employee Size (% Supplier Respondents), Global Food and Drinks Manufacturing Industry, 2009 14
Table 8: Global Food and Drinks Manufacturing Industry Expectations of Global Economy Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Global Respondents), 2009 21
Table 9: Global Food and Drinks Manufacturing Industry Expectations of Global Economy Recovery Timings by Company Type: Food Manufacturers, Drink Manufacturers, Food and Drink Manufacturing Suppliers (% All Respondents), 2009 23
Table 10: Company Revenue Growth Optimism by Global Food and Drinks Manufacturing Industry Company Type: Food Manufacturers, Drink Manufacturers, Food and Drink Manufacturing Suppliers (% All Respondents), 2009 25
Table 11: Company Revenue Growth Optimism in the Global Food and Drinks Manufacturing Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 27
Table 12: Company Revenue Growth Optimism by Global Food and Drinks Manufacturing Industry Company Type: Branded Food / Contract Food / Drink Manufacturer, Contract Food / Contract Food / Drink Manufacturer, Food and Drink Manufacturing Suppliers (% All Respondents), 2009 28
Table 13: Branded Food & Drink Manufacturers Industry: Market Predictions Of The Fastest And Slowest Growing Regions (% Food & Drink Manufacturers Respondents), 2009 32
Table 14: Contract Food / Drink Manufacturer Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Contract Food / Drink Manufacturer Respondents), 2009 35
Table 15: Food and Drink Manufacturing Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Food and Drink Manufacturing Supplier Respondents), 2009 38
Table 16: Key Growth Areas in the Global Food and Drinks Manufacturing Industry (Analysis of Supplier Respondents), 2009 45
Table 17: Key Growth Areas in the Global Food and Drinks Manufacturing Industry (Analysis of CEO/MD/Board Level Supplier Respondents), 2009 46
Table 18: Key Declining Areas in the Global Food and Drinks Manufacturing Industry (Analysis of Supplier Respondents), 2009 47
Table 19: Key Declining Areas in the Global Food and Drinks Manufacturing Industry (Analysis of CEO/MD/Board Level Supplier Respondents), 2009 47
Table 20: Food Manufacturer Vs. Drink Manufacturer Vs. Food a Drink Manufacturing Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Food and Drinks Manufacturing Industry Buyers and Suppliers (% All Respondents), 2009 52
Table 21: Leading Business Concerns for the Period 2009-2010 Among Global Food and Drinks Manufacturing Industry Buyers and Suppliers by Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 53
Table 22: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Food and Drinks Manufacturing Industry (Analysis of All Respondents), 2009 54
Table 23: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Food and Drinks Manufacturing Industry – Senior Level Responses Only (Analysis of CEO/MD/Board Level Respondents), 2009 55
Table 24: Most Important Actions Being Implemented by Food and Drink Manufacturing Suppliers to Overcome Leading Business Concerns in 2009-2010 in the Global Food and Drinks Manufacturing Industry (Analysis of Food and Drink Manufacturing Suppliers Respondents), 2009 56
Table 25: Most Important Actions Being Implemented by Food Manufacturers, Drink Manufacturers to Overcome Leading Business Concerns in 2009-2010 in the Global Food and Drinks Manufacturing Industry (Analysis of Food Manufacturers, Drink Manufacturers Respondents), 2009 57
Table 26: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Food and Drinks Manufacturing Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 60
Table 27: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Food and Drinks Manufacturing Industry: Analysis of Buyer Respondents By Company Turnover (% Buyer Respondents), 2009 62
Table 28: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Food and Drinks Manufacturing Industry: Analysis of All Buyer Respondents by Procurement Budget (% Buyer Respondents), 2009 63
Table 29: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Food and Drinks Manufacturing Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009 65
Table 30: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Food and Drinks Manufacturing Industry: Analysis of All Buyer Respondents by Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009 65
Table 31: Leading Business Opportunities During the Recession in the Global Food and Drinks Manufacturing Industry (Analysis of All Respondents), 2009 66
Table 32: Leading Business Opportunities During the Recession in the Global Food and Drinks Manufacturing Industry – Senior Level Responses Only (Analysis of CEO/MD/Board Level Respondents),2009 67
Table 33: Leading Business Opportunities for Food and Drink Manufacturing Suppliers During the Recession in the Global Food and Drinks Manufacturing Industry (Analysis of Supplier Respondents), 2009 68
Table 34: Leading Business Opportunities for Food Manufacturers, Drink Manufacturers During the Recession in the Global Food and Drinks Manufacturing Industry (Analysis of Buyer Respondents), 2009 69
Table 35: Annual Procurement Budgets in US$ in the Global Food and Drinks Manufacturing Industry: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 72
Table 36: Annual Procurement Budgets in US$ in the Global Food and Drinks Manufacturing Industry: Branded Food / Drink Manufacturer Vs. Contract Food / Drink Manufacturer (% All Buyer Respondents), 2009 74
Table 37: Annual Procurement Budgets in US$ in the Global Food and Drinks Manufacturing Industry by Region (% All Buyer Respondents), 2009 77
Table 38: Expected Change in Spend on Products and Services in the Global Food and Drinks Manufacturing Industry Over the Next 12 Months: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 79
Table 39: Expected Change in Spend on Products and Services in the Global Food and Drinks Manufacturing Industry Over the Next 12 Months: Branded Food / Drink Manufacturer Vs. Contract Food / Drink Manufacturer (% All Buyer Respondents), 2009 81
Table 40: Expected Change in Spend on Products and Services in the Global Food and Drinks Manufacturing Industry Over the Next 12 Months by Region (% All Buyer Respondents), 2009 84
Table 41: Future Change in Spend in the Global Food and Drinks Manufacturing Industry by Product and Service Category: Branded Food / Drink Manufacturer - Expected Increase or Decrease Over the Next 12 Months (% Branded Food / Drink Manufacturer Respondents), 2009 86
Table 42: Future Change in Spend in the Global Food and Drinks Manufacturing Industry by Product and Service Category: Contract Food / Drink Manufacturer - Expected Increase or Decrease Over the Next 12 Months (% Contract Food / Drink Manufacturer Respondents), 2009 89
Table 43: Critical Success Factors for Selecting a Food and Drinks Manufacturing Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 97
Table 44: Critical Success Factors for Selecting a Food and Drinks Manufacturing Industry Supplier: Branded Food / Drink Manufacturer Vs. Contract Food / Drink Manufacturer Comparison (% All Buyer Respondents), 2009 99
Table 45: Current Effects of Recession on Procurement Objectives and Priorities in the Global Food and Drinks Manufacturing Industry: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 103
Table 46: Current Effects of Recession on Procurement Objectives and Priorities in the Global Food and Drinks Manufacturing Industry by Company Turnover (% All Buyer Respondents), 2009 104
Table 47: Expected Changes in Procurement Strategy in the Global Food and Drinks Manufacturing Industry to Drive Value Across the Business Due to Recession: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 114
Table 48: Expected Changes in Procurement Strategy in the Global Food and Drinks Manufacturing Industry to Drive Value Across the Business Due to Recession: All Buyers by Company Turnover (% All Buyer Respondents), 2009 115
Table 49: Expected Changes in Procurement Strategy in the Global Food and Drinks Manufacturing Industry to Drive Value Across the Business Due to Recession: All Buyers by Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009 116
Table 50: Expected Changes in Procurement Strategy in the Global Food and Drinks Manufacturing Industry to Drive Value Across the Business Due to Recession: All Buyers by Region (% All Buyer Respondents), 2009 118
Table 51: Branded Food / Drink Manufacturer Attitudes and Approaches to Existing Procurement Practices : Level of Agreement to the Following five Statements (% Branded Food / Drink Manufacturer Respondents), 2009 119
Table 52: Contract Food / Drink Manufacturer Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Contract Food / Drink Manufacturer Respondents), 2009 120
Table 53: Full Survey Results-Closed Questions 121
1.2 List of Figures
Figure: Leading Business Concerns for the Period 2009-2010 Among Global Food and Drinks Manufacturing Industry Buyers and Suppliers (% All Respondents), 2009 16
Figure 1: Global Food and Drinks Manufacturing Industry Expectations of Global Economy Recovery Timings (% All Respondents), 2009 19
Figure 2: Global Food and Drinks Manufacturing Industry Expectations of Global Economy Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 20
Figure 3: Global Food and Drinks Manufacturing Industry Expectations of Global Economy Recovery Timings by Company Type: Food Manufacturers, Drink Manufacturers, Food and Drink Manufacturing Suppliers (% All Respondents), 2009 22
Figure 4: Company Revenue Growth Optimism in the Global Food and Drinks *-Manufacturing Industry (% All Respondents), 2009 24
Figure 5: Company Revenue Growth Optimism by Global Food and Drinks Manufacturing Industry Company Type: Food Manufacturers, Drink Manufacturers, Food and Drink Manufacturing Suppliers (% All Respondents), 2009 25
Figure 6: Company Revenue Growth Optimism in the Global Food and Drinks Manufacturing Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 26
Figure 7: Company Revenue Growth Optimism by Global Food and Drinks Manufacturing Industry Company Type: Branded Food / Contract Food / Drink Manufacturer, Contract Food / Contract Food / Drink Manufacturer, Food and Drink Manufacturing Suppliers (% All Respondents), 2009 28
Figure 8: Branded Food / Drink Manufacturer Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Branded Food / Drink Manufacturer Respondents), 2009 31
Figure 9: Contract Food / Drink Manufacturer Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Contract Food / Drink Manufacturer Respondents), 2009 34
Figure 10: Food and Drink Manufacturing Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Food and Drink Manufacturing Supplier Respondents), 2009 37
Figure 11: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Food Manufacturer Industry (% Food Manufacturer Industry Respondents), 2009 40
Figure 12: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Drink Manufacturer Industry (% Drink Manufacturer Industry Respondents), 2009 41
Figure 13: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Branded Food / Drink Manufacturer Industry (% Branded Food / Drink Manufacturer Industry Respondents), 2009 42
Figure 14: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Contract Food / Drink Manufacturer Industry (% Contract Food / Drink Manufacturer Industry Respondents), 2009 43
Figure 15: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Food and Drink Manufacturing Supplier Industry (% Food and Drink Manufacturing Supplier Industry Respondents), 2009 44
Figure 16: Leading Business Concerns for the Period 2009-2010 Among Global Food and Drinks Manufacturing Industry Buyers and Suppliers (% All Respondents), 2009 49
Figure 17: Food Manufacturer Vs. Drink Manufacturer Vs. Food and Drink Manufacturing Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Food and Drinks Manufacturing Industry Buyers and Suppliers (% All Respondents), 2009 51
Figure 18: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Food and Drinks Manufacturing Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 59
Figure 19: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Food and Drinks Manufacturing Industry: Food Manufacturer Vs. Drink Manufacturer (% Buyer Respondents), 2009 61
Figure 20: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Food and Drinks Manufacturing Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009 64
Figure 21: Annual Procurement Budgets in US$ in the Global Food and Drinks Manufacturing Industry: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 71
Figure 22: Annual Procurement Budgets In US$ in the Global Food and Drinks Manufacturing Industry: Branded Food / Drink Manufacturer Vs. Contract Food / Drink Manufacturer (% All Buyer Respondents), 2009 73
Figure 23: Annual Procurement Budgets in US$ in the Global Food and Drinks Manufacturing Industry by Company Turnover (% All Buyer Respondents), 2009 75
Figure 24: Annual Procurement Budgets in US$ in the Global Food and Drinks Manufacturing Industry by Region (% All Buyer Respondents), 2009 76
Figure 25: Expected Change in Spend on Products and Services in the Global Food and Drinks Manufacturing Industry Over the Next 12 Months: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 78
Figure 26: Expected Change in Spend on Products and Services in the Global Food and Drinks Manufacturing Industry Over the Next 12 Months: Branded Food / Drink Manufacturer Vs. Contract Food / Drink Manufacturer (% All Buyer Respondents), 2009 80
Figure 27: Expected Change in Spend on Products and Services in the Global Food and Drinks Manufacturing Industry Over the Next 12 Months by Company Turnover (% All Buyer Respondents), 2009 82
Figure 28: Expected Change in Spend on Products and Services in the Global Food and Drinks Manufacturing Industry Over the Next 12 Months by Company Turnover (% All Buyer Respondents), 2009 83
Figure 29: Future Change in Spend in the Global Food and Drinks Manufacturing Industry by Product and Service Category: Branded Food / Drink Manufacturer - Expected Increase or Decrease Over the Next 12 Months (% Branded Food / Drink Manufacturer Respondents), 2009 85
Figure 30: Future Change in Spend in the Global Food and Drinks Manufacturing Industry by Product and Service Category: Contract Food / Drink Manufacturer - Expected Increase or Decrease Over the Next 12 Months (% Contract Food / Drink Manufacturer Respondents), 2009 88
Figure 31: Future Change in Spend in the Global Food and Drinks Manufacturing Industry by Product and Service Category: Expected Increase Over the Next 12 Months Branded Food / Drink Manufacturer Vs. Contract Food / Drink Manufacturer (% All Buyer Respondents), 2009 90
Figure 32: Future Change in Spend in the Global Food and Drinks Manufacturing Industry by Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers by Company Turnover (% All Buyer Respondents), 2009 91
Figure 33: Future Change in Spend in the Global Food and Drinks Manufacturing Industry by Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers by Region (% All Buyer Respondents), 2009 92
Figure 34: Critical Success Factors for Selecting a Food and Drinks Manufacturing Industry Supplier: Difference in Views, Buyers Vs. Suppliers (Net Difference in Ranking), Global, 2009 95
Figure 35: Critical Success Factors for Selecting a Food and Drinks Manufacturing Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 96
Figure 36: Critical Success Factors for Selecting a Food and Drinks Manufacturing Industry Supplier: Branded Food / Drink Manufacturer Vs. Contract Food / Drink Manufacturer Comparison (% All Buyer Respondents), Global, 2009 98
Figure 37: Current Effects of Recession on Procurement Objectives and Priorities in the Global Food and Drinks Manufacturing Industry (% All Buyer Respondents), 2009 101
Figure 38: Current Effects of Recession on Procurement Objectives and Priorities in the Global Food and Drinks Manufacturing Industry: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 102
Figure 39: Likelihood of Future Change in Procurement Objectives in the Global Food and Drinks Manufacturing Industry (% All Buyer Respondents), 2009 105
Figure 40: Likelihood of Future Change on Procurement Objectives in the Global Food and Drinks Manufacturing Industry: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 106
Figure 41: Likelihood of Future Change on Procurement Objectives in the Global Food and Drinks Manufacturing Industry by Company Turnover (% All Buyer Respondents), 2009 107
Figure 42: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Food and Drinks Manufacturing Industry (% All Buyer Respondents), 2009 109
Figure 43: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Food and Drinks Manufacturing Industry: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 110
Figure 44: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Food and Drinks Manufacturing Industry by Company Turnover (% All Buyer Respondents), 2009 111
Figure 45: Expected Changes in Procurement Strategy in the Global Food and Drinks Manufacturing Industry to Drive Value Across the Business Due to Recession (% All Buyer Respondents), 2009 112
Figure 46: Expected Changes in Procurement Strategy in the Global Food and Drinks Manufacturing Industry to Drive Value Across the Business Due to Recession: Food Manufacturer Vs. Drink Manufacturer (% All Buyer Respondents), 2009 113
Figure 47: Expected Changes in Procurement Strategy in the Global Food and Drinks Manufacturing Industry to Drive Value Across the Business Due to Recession: All Buyers by Region (% All Buyer Respondents), 2009 117
