Oser Communications Group

GENERAL NEWS GOURMET NEWS JANUARY 2014 www.gourmetnews.com 9 Grant Thornton Global Industry Survey Reveals Food and Beverage Companies Optimistic about Growth Prospects for 2014 After years spent focusing on cost reduction and operational efficiency, executives and producers in the food and beverage industry are once again feeling confident about prospects for future growth. This is according to the 2013 Global Food and Beverage study from Grant Thornton. "Food and beverage industry leaders were forced to put certain plans for growth on hold during a difficult economic period," said Dexter Manning, Food and Beverage practice leader of Grant Thornton LLP. "Now that the global economy is showing signs of improvement, these leaders clearly have the appetite to strengthen their market positions and achieve sustainable growth through increased, focused investment." According to survey results, 90 percent of food and beverage executives expect revenues to increase in the next year, with one-third expecting sales growth greater than 10 percent. Fifty-six percent of those surveyed also stated that they expect overall employment to increase during this period. More than three-quarters of executives surveyed reported that their organizations will increase spending on equipment, new product development and information technology in the next 12 months. The greatest appetite to invest in equipment is being shown by business leaders in North America (86 percent) and Australasia (85 percent), followed by Europe (77 percent). When it comes to investment in new product development, North American executives (86 percent) show the greatest enthusiasm. Regulatory concerns are among the top worries for the new year as cited by those surveyed. Global executives fret over the possible negative effects of a number of government regulations, including those related to the environment (48 percent), taxes (44 percent), food labeling (38 percent), food traceability (33 percent) and employee health care (25 percent). Among U.S. executives, regulations tied to the Food Safety Modernization Act are a particular concern. "Many companies have programs in place, and they're trying to make adjustments so their programs comply with the rules," Manning said. "But at the end of the day, some executives look at it and say, 'Well, Congress hasn't funded it yet, and so they may not be able to enforce it.' This means that many companies do not expect much impact, especially given U.S. budget deficits and cost-cutting." As food and beverage companies are expected to grow in 2014, so are their costs. More than two-thirds of food and beverage executives expect costs to increase in the next 12 months. In particular, expenses are expected to climb when it comes to utility and energy, transportation, labor, raw materials and packaging. Nearly 250 food and beverage executives from eight countries participated in the Grant Thornton Global Food and Beverage survey, which was conducted during May and June 2013. The survey was distributed across a wide array of market segments, including wholesalers, supermarkets, restaurants and convenience stores. Participants included executives from companies ranging from less than $10 million in revenue to more than $1 billion. For more information about Grant Thornton, one the world's leading organizations of independent assurance, tax and advisory firms, and the Global Food and Beverage survey, visit www.grantthornton.com. GN Confectionery Retail Leaders to be Honored at NCA's 2014 State of the Industry Conference The National Confectioners Association is pleased to announce the recipients of the 2014 Confectionery Leadership Awards. The awards celebrate the recipients' contributions to the category through their effective business collaboration, category management, best practices and innovations in in-store merchandising of confectionery products. This year, two individuals are being recognized for their creativity, innovative thinking, and leadership and support with the category: Tim Erceg, Purchasing Specialist for Hy-Vee, Inc. and Jamal Parker, Senior Buyer, Candy & Snacks for Sam's Club. "This award recognizes and rewards the talent and dedication of the industry's trade customers who go above and beyond expectations," said NCA President Larry Graham. "There were so many deserving and worthy candidates submitted, but the members felt that Erceg and Parker are truly pioneers who exemplify the visionary thinking required to bring value to and propel the category forward." Earlier this year, Parker told Candy & Snack TODAY that his goal is always to better serve Sam's Club members. "Working in our industry has been a great experience, and it is the people who have made the difference," he said. Erceg shares this sentiment, thanking Hy-Vee's business partners and associates "who ultimately have made the confectionery category one of the top performing categories at Hy-Vee." Erceg and Parker will be presented with their awards in Miami at NCA's annual State of the Industry Conference, March 2-5, 2014. NCA, in collaboration with Candy & Snack TODAY magazine, created the awards program in 2011 to recognize and honor the confectionery industry's best and most innovative category champions and leaders. The program allows NCA manufacturers and brokers to recognize outstanding retailers and wholesalers in the confectionery community for their effective customer marketing, shopper-driven shelving practices and promotion of new items. The National Confectioners Association fosters industry growth by advancing the interests of the confectionery industry and its customers. Serving as the voice of the industry, the Association advocates for the needs of the industry before government bodies, helps the industry understand and implement food safety regulations, provides information to help members strengthen business in today's competitive environment and creates relationships between all sectors of the industry, including manufacturers, brokers, trade customers, suppliers to the industry and consumers. GN Specialty Food Association Accepts 152 New Members The Specialty Food Association is pleased to announce that 152 companies have been accepted for membership, including makers of ghost chili sea salt, bacon brittle, burrata and lavender martini mocktails. Among the new members are Grand Rapids, Mich.-based Blis Caviar, maker of flavor-infused wild domestic caviar, Pasadena, Calif.-based Califia Farms, producer of cold-brewed coffee, almond milk and citrus juice and Dobbs Ferry, N.Y.based Caveman Bakery, producer of glutenfree cookies. "These companies represent the craft, care and joy that is fueling today's specialty food industry," said Ann Daw, President of the Specialty Food Association. "We look forward to helping them build their business and bring their distinctive foods to a wider market." The Specialty Food Association (formerly the National Association for the Specialty Food Trade, Inc.) is a not-forprofit trade association for food artisans, importers and entrepreneurs established in 1952 in New York City to foster commerce and interest in the specialty food industry. It provides tools, knowledge and connections to help its members build, grow and sustain successful specialty food businesses in an always-evolving marketplace. Today, there are more than 3,000 members in the U.S. and abroad. The Specialty Food Association operates the Summer and Winter Fancy Food Shows and presents the sofi™ Awards honoring excellence in specialty food. To become a member, a company must pass a review of its products and business history by the Association's admissions committee, a panel of food manufacturers, distributors and retailers. The board of directors votes quarterly on the committee's recommendations. Membership benefits include the opportunity to exhibit at the Association's Fancy Food Shows, exclusive access to in-depth industry research, workshops and seminars on best business practices, mentoring, and regional networking events. Only Association members may participate in the sofi™ Awards honoring the year's outstanding specialty foods, and its Leadership Awards honoring individuals who are making a difference in the industry and beyond. Additional new members admitted to the Specialty Food Association in 2013 include Acala Farms, maker of flavored cottonseed oils, Columbus Foods, a salami producer, Marley Coffee, a producer of gourmet cof- fees, Portland Pepper Sauce Company, a gourmet sauce company, Katherine Ann Confections, a Chicago-based gourmet sweets company, Wagshal's Imports, importer of fine Spanish foods and Yolanda Pesto, the artisans behind a line of specialty Italian pasta sauces. Other companies admitted produce a diverse array of specialty food products, including spices and seasonings, charcuterie, cheeses, natural foods, oils and vinegars, specialty grains, chocolates, breads, salsas and more. The diversity of companies represented in this newest class of Specialty Food Association inductees reflects the overall diversity of companies represented within the larger membership of the Association. For more information on the Association, go to www. specialtyfood.com. GN

• Cover