Friday July 16, 2010

Profits Better Now Say F&B Execs

New York — Senior food and beverage executives predict improved revenue and profitability this year and next, according to a survey.

KMPG, LLP, an advisory firm, reports industry executives say their revenue and profitability are better now than the previous year. Fifty-nine percent of executives say their sector will recover ahead of the U.S. economy as a whole, and claim a full market recovery will happen in about two years.

Product and merchandising innovations are cited as the biggest driver of company revenue growth into the next few years. The most positive impact on the sector’s recovery will be the increased use of mobile technology, according to 39 percent of respondents, and 34 percent of participants expect online shopping to aid recovery.

Forty-three percent of those surveyed say their companies have already expanded into emerging markets, with 25 percent heading to Latin America, 23 percent to China and 18 percent to Brazil. Similar to prior year results, 61 percent of executives indicate their companies are investing in growth, while 39 percent are focused on cutting costs.