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KPMG: Focus on New Products, M&A and Technology For Food & Beverage Companies
June 24, 2012
By Rob Starr, Content Manager, Big4.com
According to a recent survey by KPMG LLP, the U.S. audit, tax and advisory services firm, against the backdrop of a stagnant economy, food and beverage companies have significant cash on the balance sheets, and intend to increase capital spending on new products, mergers and acquisitions and technology to fuel growth.
Executives also identified technology (36 percent) as a significant area of investment, including cloud computing and data analytics, which executives say will help reduce costs, enhance interactions with customers and suppliers and accelerate time to market.
Data analytics was also cited by executives as a key aspect of their business strategies, which they say their companies use to gain insight on customers, for brand and product management, and to help make pricing decisions. In evaluating their firms understanding of data analytics, 17 percent said their firms had high data analytics literacy and 22 percent felt that their companies were rapidly moving toward higher literacy. On the other hand, 35 percent categorized their firms as about average when it comes to using analytics and literacy and 22 percent felt they were behind their competitors.
Forty percent of the executives indicate operational improvements and making significant cost reductions will be their key initiatives over the next two years. Most point to pricing concerns and input costs as the most significant threats to revenue growth and profit margins.