essay on food and beverage industry

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Sample Essay On Food And Beverage

Type of paper: Essay

Topic: Business , Organization , Time , Services papers , Finance , Food , Industry , Human Resource Management

Words: 3000

Published: 04/03/2020

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1.1 Describe with examples, some of the characteristics of food production and food and beverage service systems that is in use within the hospitality industry. The food and beverage industry are a multi-billionaire industry, that has catered to many, making it a new industry that people can look forward to. There has to be a system, that the service directors are using to inherit a food service system that are to be followed by the directors all day-long.An option in food service industry is what we are bound to look for if there has to be a look-out and fixed system in food service.(Rama, 1996) Food industry began with the canning of products. With agriculture, there was a rise in the production of food and thus began, the process of storing the excess for future use. This, gave rise to cold storage and then canning. Canned products are the best means to storage and have become the ultimate definition of food in today’s industry. Parisian Chef Nicholas Apert developed the process of canning in 1810. Canning allows food to remain unspoiled for a longer period. Transportation of food was also possible now. Food and cuisine taste changed, and there emerged a newer concept of supermarkets. Supermarkets gradually gave rise to cuisine. The world now experienced food originated in distant lands that were made of the same ingredients with the same taste. This revolution in turn found us looking forward to the food from a different angle. The emphasis on a larger scale production formulated the need to diversify products. Then came the discovery of chemicals, the help of which food could be preserved for longer periods of time. Though the world got increasingly conscious of the food habits they made sure, canned food did not lose its importance. Cans were easily available and were ready in moments. Thus, canning led to the new generation of the food industry wherein one started the process of food processing. Food processing is a method by which raw materials are turned into eatables by some who love to be in the industry.(K, ampully and Suhartanto, 2000)

The food and beverage Cycle

The cycle of food and beverage has to be - Food and Beverage - Cleanliness 1.2 Factors to Consider in Menu and Recipe Planning Availability—Menu should be planned in accordance to the availability in the market. Check in the market first to find out what is available. From then on, find out what are the options against the ingredients that are off-season. The planning must be done in accordance to what is available in the market. Food Habits of the Customers—The food habits of the Customers of the should be the main criterion in this case. One has to make sure that all the menu goes according to the tradition and beliefs of the people who will be visiting the place. The menu just cannot be devised on the basis of whatever we think we can do best.(McVety, Ware and Ware, 2001) Time—The time required to prepare a menu is to be decided in advance. Regardless of this at the very last moment one might find them struggling with orders that cannot be delivered on time. Every customer has a meal schedule that has to be met. Proper timing ensures that orders will keep coming. Money—There is always a certain budget to meet. Planning must be done in advance to ensure that the budget is neither over done nor is the quality of food too low. There also has to be a profit generated from the exercise, which can also be determined from this exercise. Type of Customers—Age, occupational status, socio-economic status and nutritional needs have to be kept in mind while devising a meal or menu. The nutritional needs of the consumers have to be kept in mind in order to achieve the many desired benefits. Environment—Food has to be prepared in accordance to the needs of the day. The cuisines of summer and winter have to be different. So have the cuisines to be special in compliance to the changing menu of the time of the year. Occasions—Occasions need to have a special menu. The routine menu does not fit in this characterized menu of the day, but it does go well beyond to break the wall of boredom and get you something new.(McVety, Ware and Ware, 2001) Types of Menu—the menu has variations too. Whether you specialize in only three-course dinners or a coffee break depends on your menu. If the variety of cuisines in your menu is high then too it has to be planned in that specific way well ahead of time. Personnel and facilities—Number is what matters here most, their qualifications coming later in. The more the personnel, the better the service, the more the profits. Time of business—The timing of your service plays a role too big to determine the role of business in your firm. The menu cannot be coffee and cookies at the time of lunch. 1.3 For the systems discussed above, compare the cost and staffing implications

Staffing and Costing are the two aspects of food and beverage industry that has to be maintained.

Cost control is the means by which the manager attempts to levy responsibilities and control the means by which the manpower can be made to work as per guidelines. The first step is to formulate guidelines and form the basic rules which are to be followed. Costing implications have to be put up so as to ensure that costs are kept in acceptable bounds and are within the control. Staffing has also to be made in proper accordance to the budgetary limits of the event. In the case there is a shortage of staff at the last moment, it cannot be compensated if it was not planned beforehand.(Hansen and Evashwick, 1981) Staffing and costing are the same pages of a book. One cannot do without another. This, is the point when, the manager’s efficiency drops. Only an efficient manager can ensure that all the necessities are maintained and fulfilled. 1.4 Suitability of systems for different food and beverage outlets within the hotel. Russian System-- This is a system where the food is prepared in platters. Serving of the courses is done either from platters or from Escofer dishes. The plates are placed in front of the guest by a server. The server then returns and serves the guests by the right hand. Thus, he controls the amount of portion taken by the guest pleasing him at the same time. In a platter, the food is arranged for one table, with the waiter dishing it out to guests from the left side. Equal proportioning is what the Russian platter guarantees and hence it is used for banquet functions when there are no heaters for individual plates. Guerdon System- This, is where the food is cooked just by the side of the table of the customer. This, is usually done in a small table or a trolley. Seen service is where preparation of food was done on the same table. It markets the food and the establishment equally well. In today’s date, one finds a rapid increase in the demand for food that is made in front of the eyes of the customer. Be it a hamburger or a more flamboyant chicken dish anything that is cooked in front of the eyes of the customer has a greater effect. The guest here can also be encompassed with certain comments while the food preparation is in the process. This ensures that the effect in the minds of the consumer lasts long. This is a very specialized form of cooking and preparation of the meal. It comes only with years of practice and expertise. Formal or fine dining rooms are the best place to practice this cooking systems.(Bojanic, 1996) 2.1 Taking in to account, the various needs for financial statements, discuss the use of financial statements in food and beverage operations Financial statements reflect the actual performance of an organization. As a consequence, the financial statements should always depict the true and fair view of the organization. Financial statements of a company showcase all financial activities of the entity demonstrating its strength and performance over a recent period and where it stands as on a given date. Companies have a statutory obligation to prepare their financial statements for the purpose of taxation so as to give a fair and true view of their financial affairs and in case of publically held and traded companies, the same need to be published for the consumption of its shareholders. (Whiteley, 2004)

The key financial statements are:

- A profit and loss statement for the last accounting period which gives details of the gross and net profits for the business - A Balance Sheet as on the date of closing the accounting period, the listing the assets and liabilities held by the company as well as the shareholders’ funds - A statement of retained earnings or change in owners’ equity - A statement of changes in Financial position comprising of the Fund Flow statement and the Cash Flow statements - The above are accompanied by the Director’s report and the auditor’s report, duly certified. 2.2 For the above hotel, how would you demonstrate the use of cost and pricing processes

The various types of cost incurred by the hotel are as follows:

Direct Cost: Salaries, linens, crockery, food and drinks, retail expenses, occupancy cost. Indirect Cost: Room cleaning supplies, fire insurance, supplies used in spa and gym. Fixed Costs: Salaries paid to employees, Salaries to bus drivers and attendants, Maintenance cost, Salaries to restaurant staff, cost of operating spas. (Hundal, 1997)

Variable Costs: Food, Drinks, Cost of Operating Busses (Fuel)

Based on the above the organization has to pay more focus on variable costs as variable costs constitute a major part of the costs. One of the key factors for the success of Hotel industry is formulating a proper pricing strategy. In order to ensure that the customers purchase your product it is important to set a price which is consistent, accurate and competitive.

The following are the Pricing Strategies that can be followed by Icon and Upper House:

- Rack Rates: All travel and tourism industry must have a Rack rate. It is the full rate without any discount printed on the brochures for the season ahead. This rate is more likely to change all the time without any discount - Seasonal Pricing: The standard way of pricing is to mix the price throughout the year to cover low and high for different level of demands due to the time in a year. - Last Minute Pricing: The last minute pricing is discounting daily prices according to the bookings made for accommodation of suppliers to fill those last minute gaps in inventory available. - Discounting: 2.3 As the food and beverage manager, how would you implement an effective purchasing process of the above hotel An organization has to keep a record of the stock like that can affect the profitability of the business. The carrying cost and the ordering cost has to be taken into account. In order to keep a tab on the cash flow and inventory the organization will have to assess the following: - Economic Order Quantity: The organization has to keep a tab of the EOQ. EOQ is the quantity where the cost is the lowest. This, comprises of the ordering and the carrying cost. For this, the organization has to estimate the annual demand of the product and order accordingly. (Grubbstr\"om and Erdem, 1999) - Ratios: The business needs to have a clear understanding of the ratios. For example, how, many times have the stock been cleared and restocked. The business needs to have a clear understanding of this. The other important ratios are sales to stock ratio, sales per square foot etc. Apart from the suggestion made above the organization can also have a Just in Time purchasing system and can have good retail software. This, would allow the organization to save on the carrying and other related costs and keep the cash flow intact.

Menu In a wedding

Appetizer Mini Jumbo lump crab cake Salad Gainey Green salad with Raunch Dressing Hot sourdough rolls with butter. HorsDOeuvres Tempura Prawn with Balsamic Vinegar Puff Pastries Chicken Satay Entrees Wild Arctic Char with crispy skin Preserved Lemon Viniagrette over Butter Braised Cabbages. Dessert Red Velvet cake with a white chocolate cheesecake filling Beverages Red wine, Champagne The above menu gives the audience the audience to choose. My menu includes appetizers that can be served to children as well, a small portion, followed by a main course, where I have incorporated lump crab cake, for those interested in eating healthier and with a reduced caloric value, another dish is chicken satay with puff pastries that address to all guests except those suffering from diabetes, and of course my last dish on the main course is tempura prawns. Than as I dessert I introduced red velvet cheese cake, healthy, less calories.

Pricing Chart

Crab cake is priced at 9 pounds per plate. Salad is priced at 6 pounds per plate The rolls are 1 dollar per plate Tempura Prawn with Balsamic Vinegar is 14.31 pounds Puff Pastries are 10.73 pounds per plate Chicken Satay is priced at 21.46 pounds per dozen.

Wild Arctic Char with crispy skin is priced at 5.37 pounds per plate

Preserved Lemon Vinaigrette over Butter Braised Cabbages is priced at 7.17 pounds per plate Red Velvet cake with a white chocolate cheesecake filling will cost 2.83 pounds per plate The menu has been arranged for 400 people. The menu presented above includes:- - Appetizers - Main Course - Desert Customers have been provided large flexibility in terms of choosing what they want and how they want it. These are the dishes available to be served and can be done at the most reasonable prices at the convenient timings.

The above menu can be an excellent organization if staffing, production, organization and staffing methods fall in place.

4.1 A food and beverage service plan for a hospitality event The criteria of the number of ovens must always be remembered, and, owing to it the preparation should be started in advance. Adequate number of staff should be present in order to ensure the fact that nothing goes wrong. A served buffet though enables the control of portion size and the helpings.(Rainsford and Bangs, 2001) 4.2 Steps involved in implementing your recommended service plan, maintaining standards of quality and health, safety and security. Standards of quality have to be maintained in case of production of food and beverages and of cooking. Health, safety and security come from hygiene. All canned food must be stored in a proper environment and proper temperatures. Unacceptable food must be immediately destroyed. The health of the staff is also a prime concern. It must be ensured that there are now ounds and that they maintain proper cleaning standards before cooking. (Lundberg, 1989)

The food protection equipment should not only be clean it should also should be sanitized.

- Food baskets must be lined - There must be sufficient number of containers - Lids must be closed - Containers should be clean - Chemicals must be labeled - All pest control elements are under control Raw meat must be handled carefully maintaining all standard so as to ensure that all standards of hygiene are met. Defrosting is recommended in cold water. 4.3 Factors to determine the success of the service, making recommendations for improvement.

Services in this industry are based on

- Integrity - Quality - Trust - Value - Consistency - The staff and managers must have excellent co-ordination - Innovation must always be enforced - Service - Right concept - Execution Labor costs should always be minimized in the food and beverage industry to maintain profitability. Price is also an important factor in relation to this. If the prices are low, it does not mean that the profit is low. The prices are a direct reflection of the customers thought to the food. It reflects what they feel and like about it.

Bojanic, D., 1996. Consumer perceptions of price, value and satisfaction in the hotel industry: An exploratory study. Journal of Hospitality & Leisure Marketing, 4(1), pp.5--22. Davies, B. and Downward, P., 2001. Industrial organization and competition in the UK tour operator/travel agency business, 1989-1993: an econometric investigation. Journal of Travel Research, 39(4), pp.411--425. Grubbstr"om, R. and Erdem, A., 1999. The EOQ with backlogging derived without derivatives. International Journal of Production Economics, 59(1), pp.529--530. Hansen, M. and Evashwick, C., 1981. Hospice: staffing and cost implications for home health agencies. Home health care services quarterly, 2(1), pp.61--81. Hundal, M., 1997. Product costing: a comparison of conventional and activity-based costing methods. Journal of Engeering Design, 8(1), pp.91--103. K, ampully, J. and Suhartanto, D., 2000. Customer loyalty in the hotel industry: the role of customer satisfaction and image. International journal of contemporary hospitality management, 12(6), pp.346--351. Lundberg, D., 1989. The hotel and restaurant business. 1st ed. New York: Van Nostrand Reinhold. McVety, P., Ware, B. and Ware, C., 2001. Fundamentals of menu planning. 1st ed. New York: Wiley. Rainsford, P. and Bangs, D., 2001. The restaurant start-up guide. 1st ed. Chicago: Dearborn. Rama, R., 1996. Empirical study on sources of innovation in international food and beverage industry. Agribusiness, 12(2), pp.123--134.

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The role of food and beverage in hospitality

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This article explores the critical role that food and beverage play in the hospitality industry. From hotels and resorts to restaurants and bars, food and drink are essential elements of the guest experience. In this article, we will discuss the impact of food and beverage on guest satisfaction, revenue generation, and branding.

The hospitality industry is all about creating memorable experiences for guests. While many factors contribute to a positive experience, food, and beverage are among the most critical. Whether it’s a five-star hotel restaurant, a cozy cafe, or a fast-food joint, food, and drink can make or break a guest’s experience.

The role of food and beverage in hospitality is multi-faceted, from providing sustenance to generating revenue and enhancing branding. In this article, we will delve deeper into the importance of food and beverage in hospitality and how they impact guest satisfaction, revenue, and branding.

The Importance of Food and Beverage in Guest Satisfaction

Food and beverage are essential components of guest satisfaction in the hospitality industry . When guests stay at a hotel or dine at a restaurant, they expect high-quality food and drink that will not only nourish them but also provide a memorable experience. The taste, presentation, and quality of the ingredients all play a significant role in guest satisfaction.

A good dining experience can create a lasting impression and lead to positive reviews, while a poor experience can result in negative feedback that can impact the hotel or restaurant’s reputation. Therefore, food and beverage are critical elements in creating an overall positive experience for guests.

In addition, food and beverage are often significant factors in guests’ decision-making process when choosing a hotel or restaurant. Guests may choose a hotel or restaurant based on the quality and variety of the food and drink offered, as well as the reputation of the establishment’s chefs or bartenders. By providing exceptional food and drink, hotels and restaurants can attract and retain customers, leading to increased revenue and repeat business.

Moreover, in today’s social media age, guests often share their experiences on various online platforms, including social media. Positive reviews and social media posts can generate free advertising and lead to increased bookings and sales. Therefore, providing high-quality food and beverage is not only crucial for guest satisfaction but also for a hotel or restaurant’s online reputation and marketing efforts.

Food and Beverage Revenue Generation

Another critical role of food and beverage in hospitality is revenue generation. Restaurants, cafes, and bars are some of the most profitable ventures in the hospitality industry, and food and drink sales can account for a significant portion of a hotel or resort’s revenue.

In recent years, hotels have started to focus more on food and beverage as revenue generators. Many luxury hotels now have signature restaurants, cafes, and bars that attract not only guests but also locals. These venues can become a source of income for the hotel, as well as an opportunity to showcase the hotel’s brand and reputation.

In addition to on-site dining options, many hotels also offer in-room dining services, which can be a significant source of revenue. Guests often appreciate the convenience of being able to order food and drink in their rooms, and hotels can charge a premium for this service.

Enhancing Branding Through Food and Beverage

Enhancing branding through food and beverage is a strategy that has become increasingly popular in the hospitality industry. By incorporating unique and memorable dining experiences, hotels and restaurants can differentiate themselves from their competitors, enhance their reputation, and build brand loyalty among customers.

One way to enhance branding through food and beverage is by creating a signature restaurant or bar within a hotel. A signature restaurant or bar can become synonymous with the hotel’s brand and provide guests with a unique experience

. For example, a luxury hotel may have a Michelin-starred restaurant that attracts food enthusiasts from all over the world. By offering high-quality food and drink, the hotel can enhance its reputation as a luxury brand and attract customers who value fine dining.

Another way to enhance branding through food and beverage is by incorporating local culture and cuisine into the menu. By using local ingredients and flavors, hotels and restaurants can differentiate themselves from their competitors and provide guests with an authentic experience.

For example, a hotel in New Orleans may offer a menu that features traditional Cajun and Creole cuisine. By highlighting the local cuisine, the hotel can attract customers who are interested in experiencing the local culture.

In addition to enhancing the hotel or restaurant’s reputation, food and beverage can also be used to market the brand. By creating unique dining experiences and using social media to promote them, hotels and restaurants can attract new customers and generate positive word-of-mouth advertising.

Finally, food and beverage can be used to reinforce a hotel or restaurant’s overall brand identity. For example, a hotel with a focus on sustainability may offer a menu that features locally sourced, organic ingredients. By using sustainable practices in the kitchen, the hotel can reinforce its commitment to sustainability and attract customers who value environmentally conscious practices.

In conclusion, food and beverage play a critical role in the hospitality industry. From guest satisfaction to revenue generation and branding, the importance of food and drink cannot be overstated.

Hotels and restaurants that prioritize food and beverage and offer high-quality, unique, and memorable dining experiences can differentiate themselves from their competitors and build a loyal customer base.

In a world where experiences matter more than ever, food and beverage can be the key to creating lasting memories for guests.

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Food and Beverage Industry Analysis: PESTLE, SWOT, Porter's Five Forces

Our Food and Beverage Industry Analysis investigates the industry's life cycle, competitiveness, and what external and internal factors impact its operations.

Today's article will be a treat for foodies since it will be all about food and beverages. The food and beverage industry is one of the biggest industries since it has a broad customer base.

Have you ever seen a person who doesn't eat or drink? Of course not. Hence, all humans are affiliated with the food and beverage industry. However, some of you might not be aware of what exactly comes under the banner of the food and beverage industry. Well, let me tell you.

The food and beverage industry consists of all places where food and beverages are served, such as cafes, restaurants, pubs, etc. Besides the direct outlets that provide food and beverages, food and beverages manufacturers and transporters are also considered a part of the food and beverage industry.

Since the food and beverage industry is one of the biggest industries, we have decided to conduct a Food and Beverage Industry Analysis in today's article. 

The food and beverage industry is the oldest. So, you must be thinking, how am I making such a big claim?

To understand this, you have to understand that even at the time of cavemen, no other industry existed. Even then, humans were consuming food. Hence, the food and beverage industry existed.

Over the years, the food and beverage industry evolved. The practice of agriculture started when people started to plant crops and fruits to meet consumers' demands. Later as industrialization occurred, manufacturing industries got established that manufactured and packaged different eating and drinking products.

The food industry is divided into different segments. Some of the food and beverage industry's most important components are producers, manufacturers, retailers, and consumers. All these segments join together to form the food and beverage industry.

Producers are the farmers who grow food, while manufacturers are the industries that manufacture new products from raw inputs and are involved in packaging. Moreover, retailers are the grocery stores and supermarkets that make the food and beverages available to consumers.

The last and most important segment of the food and beverage industry is the consumers, who control the demand in the industry. Besides these key components of the food and beverage industry, transporters and marketing people involved in the operations related to the food and beverage industry are also a part of the industry.

The food and beverage industry is an ever-growing industry. In 2022, the food and beverage industry grew to $6.3 trillion at 8.7%. As the industry is growing, more food outlets have been established worldwide. Currently, around 15 million cafes, restaurants, and pubs all over the globe contribute significantly to the industry's growth.

Since this industry is huge, it provides employment to around 22 million workers . Besides that, it supports many industries, such as agriculture, with whom around 1 billion people are associated .

Since the food and beverage industry is responsible for generating economic activity, providing food, and creating jobs.

Let's proceed further and conduct a food and beverage industry analysis to see the food and beverage industry's life cycle, the industry's competitiveness, and what external and internal factors impact the industry's operations.

Food and Beverage Industry Life Cycle

As we proceed further with the industry analysis , let's first construct the food and beverage industry life cycle. The life cycle of every industry is divided into five parts.

The first part of every industry life cycle is the startup stage. After that, an industry reaches the growth stage. Then, the industry has to undergo the shakeout stage, and it reaches the maturity stage. In the end, every industry reaches the decline stage.

Startup Stage

The startup stage is the opening stage of the industry life cycle. This stage represents the initial days of an industry when there are very few businesses that operate in the industry. Since not many companies are a part of the industry at that time. Hence, less competition exists within the industry.

Since the industry is in its initial days, people are unaware of the industry. Companies that are a part of the industry look for ways to attract customers. The food and beverage industry has been around ever since the existence of humans.

However, it is said that the first restaurant ever established was in 1765. Therefore, this era can be considered the startup stage of the food and beverage industry since no or very few restaurants would have existed back then. 

Growth Stage

After the startup stage, every industry undergoes the growth stage. In this stage, the industry starts to grow. More companies start to enter the industry, and the industry's competition increases. This stage benefits the consumers since they have many more options.

The food and beverage industry entered the growth stage in the 19th century when canning and pasteurization developed. These processes made it possible to store and package food for later use. After that, manufacturing and packaging took place in the food and beverage industry.

Moreover, this enabled more food and beverage-related businesses to establish. Hence the food and beverage industry grew.

Shakeout Stage

As an industry crosses the growth stage, it enters the shakeout stage. In this stage, small companies exit the industry since they find it difficult to survive in a highly competitive market. As a result, some well-established companies that hold large market shares emerged.

Besides, these large companies acquire smaller companies or force them to leave the industry.

The shakeout stage in the food and beverage industry arrived in the 20th century when big brands in the food and beverage industry, such as Nestle and Pepsi , arrived and established themselves. These brands acquired smaller companies and survived in the industry.

Maturity Stage

This stage reflects when the industry stops growing further, as it has no further potential to grow. In the maturity stage, the industry is at its peak since it maximizes its market share.

The food and beverage industry hasn't reached the maturity stage yet. However, as the population keeps on growing, the demand for the food and beverage industry continues to grow. As a result, the industry is predicted to grow at 8.7% in the coming years .

Decline Stage

The decline stage arrives after the maturity stage. In this stage, the industry's market share starts to fall since the demand for the products offered falls. This usually happens when consumers switch to an alternative industry .

The food and beverage industry is far from the decline stage since there are no signs of the decline of the food and beverage industry. Furthermore, humans have no alternative to food, so the industry won't be entering the decline stage anytime soon.

Assessing the Competition: Porter's Five Forces Model

Now that we are done discussing the life cycle of the food and beverage industry let's proceed further and have a look at the level of competition that exists in the food and beverage industry through Porter's five forces model.

Porter's five forces model is a business tool companies use to assess the level of competition in an industry. Companies decide whether to enter an industry or not with the help of this technique.

This model consists of five stages. Let's move ahead and analyze how competitive the food and beverage industry is.

Competitive Rivalry

This factor of Porter's five forces model analyses the competition in the industry. It is the first factor of the model.

The food and beverage industry is highly competitive. There are several brands present in the industry that want to maximize their share. Since many companies are present, there are price wars, and brands spend significantly on R&D to gain a competitive advantage over other brands.

Supplier Power

In every market there, either buyers or suppliers have the power. This factor analyses the supplier's power to dictate prices in an industry. Any industry where the number of suppliers is low will have great supplier power. At the same time, an industry where there are a lot of suppliers will have low supplier power.

The supplier power in the food and beverage industry is quite low since many suppliers are available in the market. Hence, there is always an option to switch suppliers. Moreover, the input supplied isn't something scarce. Almost every supplier supplies similar products, which decreases the supplier's power.

Buyer Power

This factor of Porter's five forces model analyses the power of buyers to dictate the prices. Buyers can exercise their power if there are several alternatives present for the buyers.

The buying power in the food and beverage industry is really high since buyers can switch to different brands because of low switching costs. Moreover, buyers are highly price-sensitive, which is why the food and beverage industry brands have to agree with the prices set by buyers.

Threat of Substitution

This factor discusses how threatened companies are from getting substituted by customers. The companies in the food and beverage industries face a great threat of substitution since many companies offer similar products.

For example, many companies manufacture milk, all of which taste the same. In such cases, customers can easily substitute one brand with another.

Threats of New Entry

This model factor investigates how threatened the existing companies are by new entrants. The threat of new entrants in the food and beverage industry is relatively low since several barriers exist for new entrants.

Many companies already exist in the industry that won't let a new entrant snatch its market share. Moreover, it takes time for a new entrant to realize the market trends , so it's impossible for a new company to compete with the industry giants.

Environmental Analysis

After constructing the industry life cycle and assessing the competition in the food and beverage industry, let's conduct an environmental analysis of the food and beverage industry.

To conduct the environmental analysis, we will conduct the SWOT and the PESTLE analysis of the food and beverage industry.

PESTLE Analysis

PESTLE analysis is a business technique used to analyze the external factors that impact an organization's operations. Let's identify some external factors impacting the food and beverage industry.

●      Political Factors

Governments worldwide have different laws regarding the food and beverage industry. Some countries have strict checks and balances, while others have relatively relaxed laws. Therefore, businesses in the food and beverage industry operating in countries with strict laws must be careful.

●      Economic Factors

Recessions always lower the purchasing power of the customers. A global recession is predicted soon, which will reduce the purchasing power of the people. Hence, the food and beverage industry will suffer.

●      Social Factors

As awareness has increased, people have realized how bad fast food is for their bodies. As a result, many people have stopped eating fast food. This has caused the demand for fast food to decrease .

●      Technological Factors

Technological developments have made the internet available to the masses, and businesses have started to market their products on social media. Companies in the food and beverage industry are doing the same. As a result, the demand for food and beverage products has increased significantly.

●      Legal Factors

The food and beverage industry requires a lot of labor. Hence, companies have to ensure that they don't violate any labor laws or that they can face penalties that will adversely affect the entire industry.

●      Environmental Factors

The food and beverage industry uses a lot of plastic packaging. Plastic deteriorates the environment. The food and beverage industry has to find an alternative to plastic to mitigate its contribution to disposing of plastic.

SWOT Analysis

The SWOT analysis is used by business analysts to analyze the internal and external factors affecting an organization's operations. So let's proceed further and conduct the food and beverage industry SWOT analysis.

●      Strengths

The food and beverage industry has a huge customer base since every human is a consumer, and some are producers. As a result, the food and beverage industry generates high revenue.

●      Weaknesses

A lot of food is wasted by the food and beverage industry. According to the UN's report , after harvesting, 13.3% of food is wasted, and consumers waste 17% of the total food.

●      Opportunities

Every human consumes food. Hence, the increasing population acts as an opportunity for the food and beverage industry as it will increase the demand for the products offered by the companies in the industry.

●      Threats

The war between Russia and Ukraine has adversely impacted the industry since several companies in the food and beverage industry have suspended their operations in Russia. The industry will observe financial losses till the war doesn't stop.

Food and Beverage Industry Analysis: Final Word

The food and beverage industry is the oldest and most significant industry. Besides providing food, it generates economic activity and jobs for millions of people.

Since the food and beverage industry holds great significance, we have conducted its industry analysis today. To recap, we first conducted the industry life cycle to analyze different stages of the food and beverage industry.

Then we assessed the industry competition level with the help of Porter's Five Forces Model. After that, we carried out an environmental analysis of the food and beverage industry. In the environmental analysis, we carried out both PESTLE and SWOT analysis of the food and beverage industry. After completing our industry analysis, we assume that this article has made you fully aware of the food and beverage industry.

PESTLE Analysis of the Automotive Industry

Banking Industry PESTLE Analysis and Recommendations

Pestle analysis for hotel industry (2024 updated).

Manufacturing and Industrial

Challenges And Opportunities In The Food & Beverage Industry

Team Thomas September 6, 2022

The Food and Beverage Services Global Market Report expects the global market to grow from $3.2 trillion in 2021 to $3.7 trillion in 2022. It's a promising outlook, given that just a few years ago, Fortune reported an $18 billion loss for the top 25 U.S. food and beverage companies.

As the newer generations move away from processed foods in favor of seeking healthier alternatives with cleaner labels, companies are adapting and pressing forward — t hat trend continues to grow at an excessive pace, signaling that some demands are more of a long-term standard.

But many major food and beverage (F&B) companies have shown that they are not as nimble as smaller companies when it comes to adapting to consumer preferences and there are still challenges the food and beverage industry faces.

Consumer Demands of Millennials & Gen Z

Consumers are driving the next best thing for food and beverage companies.

They are turning more to snack items versus traditional food, purchasing food with a diversity of flavors, and seeking out food that shows where it was derived from. Product traceability and company transparency are important to millennials.

In line with the changes in the private labeling industry , the food and beverage industry is working to put more sustainable packaging and unique products on the shelves and available online to meet the challenges of growing consumer demand. 

Manufacturers have responded by highlighting the origin of their products and producing products with “clean labels” — essentially, a product that lists out as few ingredients as possible and making sure those ingredients are recognizable and wholesome. But other manufacturers are not so quick to produce innovative products, flavors, or packaging. 

Company Acquisitions To Supercharge The Industry

As a result of changing consumer demands, larger companies have been acquiring smaller companies to tap into their resources that appeal more to the market. Big companies seek smaller companies for many factors like innovation, sustainability, corporate social responsibility, and sometimes for simple healthy ingredients. 

Food and beverage companies that have been in the industry for dozens of years may already have a longstanding legacy of their ingredients perceived as unhealthy. An acquisition or partnership can help alleviate those branding perceptions. 

Another Angle: How Big Companies Choose New Suppliers

Food and beverage companies are hoping to strike a balance between their traditional efforts and their small counterparts' innovative methods. Small newer companies can show big companies how to streamline their operations, foster employee diversity, make minor changes to improve sustainability, build an online community through social media networking, and strengthen their e-commerce platform — matters that are important to consumers these days.

Cannabis Industry On A Roll

Then there’s the cannabis market, which has extended beyond recreational use into the F&B industry in response to consumer demand. Although CBD has appeared in products ranging from beverages to candy to pet food, the legal status of some products remains unclear. For example, according to Forbes , CBD derived from hemp is legal at the federal level, but CBD derived from cannabis is not — even though chemically they are identical. 

Because each state has its own regulations for the cannabis industry that continually changes, navigating the market can be a challenge. The cannabis industry will continue to take off and food and beverage companies need to continuously be aware of consumer behavior and trends to stay ahead of competitors. Even the wine industry has started to develop cannabis-infused wines. 

To see who’s interested in products and services in your food or beverage services right now, get a free in-market buyer report . 

The Effects Of COVID-19 To The Industry

One of the major challenges almost all businesses are facing has been from the effects of COVID-19. We’ve seen how some businesses flourished overnight, while others struggled to adapt. Managing supply chain disruption is not new to manufacturers and industrial companies. Still, the effects of the COVID-19 pandemic made it more paramount for processes and operations to change — and some matters that finally needed to be taken off the backburner.

In the past few months, countless pictures of empty grocery store shelves were shared verifying that grocery store supply chains were not prepared for the spike in demand. It’s important for manufacturers to understand the consumer’s mindset and apply innovations to minimize further disruption in the supply chain .

Today’s consumers are looking for more than just top quality products — they want quality consumer interactions, increased transparency, and reliable ecommerce platforms. Diving deeper, how accurate is your product availability online versus in your distribution centers? Have you communicated when there was a shift in your production focus that affected customers’ products? Are you only communicating with your customers through one channel or are you using a mix of platforms and content to reach them? 

With ecommerce shoppers and buyers in mind, food and beverage manufacturers have an upward trajectory.  People are looking to companies for signs of strength. Are you one of them? Each month, Thomas adds hundreds of new companies to our existing 500,000+ North American supplier listings — and they’re reaping the benefits with an increase in brand presence online that helps them to connect with more buyers. Complete your listing here .

For additional resources on helping your manufacturing company grow and navigate uncertainties, check out the links below:

• Learn how this manufacturer used online advertising and content marketing to get a 321% increase in quote value. Case Study: How Corrugated Metals Tapped Into A New Industry
• American History has shown that companies that thrived during the Great Depression continued to advertise and didn’t wait for public demand to increase for their products to rise. Read More: The Importance Of Marketing And Advertising For Manufacturers During Economic Downtimes
• Studies have shown that a Thomasnet.com verified profile gets at least double more RFQs than those that don’t. Begin with a free Company profile here to boost engagement with buyers, engineers, and procurement managers. 
• Request a free Digital Health Check to find out exactly what you can improve online to get more buyers.

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--> Food and Beverage Industry

Introduction.

Queensland Australia has a diverse food and beverage industry. The industry produces enough drinks and different kinds of food to cater for the growing population in the state. The multi-ethnic state has diverse cultures necessitating for diversification of the industry to meet individual cultures requirements. The combination of local people and foreigners enhance the industry to produce quality food and beverages to satisfy all possible demands. According to Collins, Watson, and Clare (2014), the food and beverage industry offers high quality and nutritious foods safe for human consumption. The growing demand for the food and drinks by th workers, students, and other people enhance competition within the industry thereby leading to the provision of high-quality foods and beverages. The increase in the number of market providers of products and the increase in competition force the industry players to offer diverse foods and beverages at affordable prices. Therefore, many people can afford to purchase different types of foods and beverages the industry offers. The agricultural industry provides a solid foundation for the food and beverages industry. This paper discusses the food and drink industry, entry requirements, and the set of regulations that govern the industry.

Food and Beverage Market

The safety of drinks and food arise from the strict food safety and biosecurity measures imposed by the Australian authorities (Huvaere & Skibsted, 2015). All single entities need to have the compliance certificates to operate in every sector of the state. However, the state bodies subject an individual business to intense scrutiny to ensure that only industries with the ability to meet the health and safety standards operate and render their products and services to consumers. In addition, health authorities subject businesses into rigorous inspection from time-to-time to ensure that companies meet the health standards all the time. The advance is significant because it ensures that out of date or expired substances do not reach consumers. Agriculture forms the backbone of the state economy through the production of different farm produce that ends up in the food and beverage industry. For instance, there is intensive cultivation of grains such as maize, wheat, and sorghum that provides an adequate supply of products necessary to support the industry. Sorghum is an essential component in the manufacture of some soft drinks in the state. The high performance of the food and beverage industry is partly because of the diverse agricultural industry. The industry’s supply chain has small, medium, and large industries that operate at various levels of the supply chain. According to Alagiyawanna, Townsend, Mytton, Scarborough, Roberts, and Rayner (2015), the industry is capable of serving almost everybody in the society regardless of the levels of incomes. In addition, the existence of various types of the business ensures the creation of extensive customer base and opens up beverages and food to consumption by different people. Consequently, many people have access to the industry’s products. The existence of various businesses and different levels of the supply chain allows for the creation of both skilled and unskilled labor thereby enhancing the industry. Most of the Queensland State universities offer courses in the food and beverage industry. The advance allows for the churning of specialized skills into the market hence ensuring safety and health standards in the market. In addition, skilled labor permits specialized services to people of different ethnicity and cultures in a respectable manner. Tourists can afford tailor made products and drinks to quench individual tourist requirements. Additionally, skilled labor enhances innovation in the industry to promote incorporation of technological advancements in the market such as the utilization of online services to search and order their preferences with a click of a button.  Therefore, the utilization of skilled labor is crucial in the provision of better services and enhancement of the industry to cater to the diverse culture in Queensland State (Ferguson, O’Dea, Chatfield, Moodie, Altman, & Brimblecombe, 2015). The competent workforce is essential in dealing with many problems and emerging issues in the industry and ensures the market is at par with others state industries.

Composition of the Food and Drink Market

The Queensland’s food and beverage industry comprise of the producers of the raw organic, natural and fresh food substances and the manufacturers of foods such as additives, confectionery, and nutritional supplements (Rampedi & Olivier, 2013). The producers of the food substances engage in the farming activities to supply the required raw materials. Farmers engage in both subsistence and commercial agriculture to produce the required raw materials for use in the market. The raw materials are critical elements in the market because they form the basis through which the processors can achieve their procedures. The producers render their natural products to the processors and manufacturers who convert the materials to a form that is readily marketable. Meanwhile, manufacturers in the food and beverage industry engage in converting the raw materials to a form acceptable to the final consumer. Therefore, manufacturers specialize in converting the raw materials to conventional foods and beverages for consumption. The State has efficient infrastructures such as the road that allow for the transportation of the food and beverages from the point of production to the point of consumption. The Queensland environment allows hospitality and friendly interaction between the industry players and consumers. The communication aids users to gather information on most foods and beverages. The information on the products is essential in that consumers can choose the usability of the product and weigh the suitability of the product. The proximity of the state to the Asia and Pacific markets is essential to the industry. Beverages and foods do not meet the local demand but also the foreign markets (Harris, 2015). The efficient transport and communication infrastructure, the hospitable Queensland’s environment, and the proximity to the Asian and Pacific markets attract businesses of all sizes to ensure growth and development of the industry. There are different leading companies in the food and beverages industry. Food processing firms engage in the handling of raw materials to finished goods ready for consumption. The primary players in the food processing are flour millers, bakers, canners and packers (Rayner, Scarborough, Townsend, Alagiyawanna, Roberts, & Mytton, 2015). The individuals oversee the treatment and food and beverage packaging. The beverage manufacturing entails the services of brewers, wine producers, and non-alcoholic manufacturers. The businesses ensure the brewing of alcoholic drinks, wine production and the production of non-alcoholic beverages. The retail and hospitality businesses include supermarkets, restaurants, hotels, stores, markets, and retail bakeries. Firms enhance the food and drinks delivery to the customer. In addition, firms aim at taking foods and beverages as close as possible to consumers. The advance allows the business to thrive because consumers have unlimited access to foods and beverages. Retailers such as supermarkets allow consumers to purchase many of foods in one store thereby saving customers time. In addition, consumers have the ability to sample different foods and drinks in shops. Restaurants aim at preparing foods and drinks and offer them to customers when ready for utilization. The community and health service providers engage in developing hospitals, health centers, hotels, and catering services (Bell et al., 2013). The services support the food and beverages industry through accommodation and ensuring people are in good health conditions to work effectively in various departments thereby facilitating continuous production of raw materials, processing, manufacturing and sale of different foods and beverages. The transport and distribution businesses maintain warehouses, distribution centers, and logistics centers to ensure timely transportation of raw and finished materials to their destination points. The agriculture industry is the primary producer of grains, beef, vegetables and fruits that are the products for use in the industry. In addition, the biotechnology industry in Queensland supports the industry through research, growing and manufacturing foods with health and nutritional benefits.

Joining the Foods and Drinks Industry

The diversity of the food and drink industry presents many opportunities for like-minded business people to explore and discover the markets within the industry. Consequently, there are many opportunities for all types of institutions and business sizes. Starting a food and beverage business requires one to go through a rigorous process. A potential entrepreneur needs to consult the local councils to identify the kind of documentation and permits needed for legitimate business operation. The local government directory available on the internet allows businesses starters to identify the local councils for smooth processing of the permits. Market research is critical for the enterprise entrepreneurs in the food and drink industry. Research allows potential investors to identify the principal competitors in the desired field. In addition, research allows investors to design the market campaigns that will directly target the potential consumers and assist in enhancing the sales volume of the desired investment. Market research in the industry will help an entrepreneur to identify valuable information regarding the specific market segments during particular times and for particular groups of people. Furthermore, market research will assist an investor to make a good comparison in the growth process of competitors and allow keeping an eye on the competitors enterprise to ensure healthy competition. From research, an investor can design market strategies to keep the new investment always ahead of rivals and exploit new markets; the existing competitors are yet to take advantage (Jensen & Ronit, 2015). A new investor can utilize the tool to identify major problems in the markets and try to find solutions to the problems. The criterion is important because it can minimize chances of losses occurring in the future. In addition, the market research in the food and beverages industry can be essential in identifying new business opportunities and recognize new customer bases. Furthermore, the research can be appropriate to make a well-informed decision on the suitability of venturing into different business opportunities within the industry. To boost the expansive growth of the industry and attract more investors, the government authorities in Queensland offer different assistance packages. The primary producers of the animal, fisheries and plants receive subsidies to enable them kick-start their business and increase the productivity of the animal, fish, and plant products for use by the manufacturing companies. Many of the products in the food and beverage industry are from animal and plants products. Beef, grains, fruits, and vegetable are critical constituents of the industry (Fukushima et al., 2014). Therefore, the subsidies allow a new investor to engage in commercial production of the food substances to enhance production of raw materials to boost the industry. The Queensland authorities offer assistance packages for producers and distributors of wines. Wines set significant element of the beverages. Many consumers utilize wines for different reasons. Some consumers of wines believe that wine use lowers the mortality rate. The death rate among wine consumers is lower than it is among beer and spirits consumers. Besides, wine use reduces the risk of heart attack because the ingredients help to lower the blood pressure of users. Therefore, the criterion reduces the likelihood of heart attack. Some of wine users believe that wine reduces the risk of contracting the type 2 diabetes. Some research studies identify that non-wine users are more likely to develop the kind of diabetes compared to the users of wine. In addition, wine reduces the risk of developing colon cancer among wine drinkers (Bell et al., 2013). However, ordinary consumers realize the benefits of wine. For the above reason, wine commands substantial market for the food and beverage industry. In addition, the product is a source of significant revenue to the state authorities and business enterprises. Therefore, the authorities offer subsidies to wine producers and distributors to enhance income generation within the industry.

Foods and Beverage Compliance Rules and Regulations

Starting a food and beverage business requires compliance with the industry rules and regulations. Food safety standards and regulations apply to all enterprises at different levels of production, processing and distribution (Queensland Government, n.d.). There is a need for business starters within the industry to seek information on the rules and regulations that all the enterprises must comply with to avoid unnecessary fines or prosecutions and arrange on how to meet each of the outlined specification. Businesses must comply with the Food Standards Australia New Zealand regulations that describe the food and beverages handling practices to ensure safety in the industry. The food safety practices are broad, and authorities ensure that businesses comply with each of the practice. Business owners need to provide accessible hand washing apparatus and facilities to ensure that consumers wash their hands before handling food. The aim is to reduce diseases and infections in case of hands contamination (Dodds et al., 2014). Entrepreneurs must provide warm and cold running water, soaps and single use towels to dry hands. The advance should be a standard practice for all businesses whether small or big and for different markets within the industry. Entrepreneurs have the responsibility of reporting the emergence of diseases to the relevant bodies to ensure expedited action to contain the spread of illnesses. Owners need to report people and employees who display signs and symptoms of vomiting, diarrhea, foodborne illnesses and discharges from eyes or noses (Queensland Government, n.d.). The advance is to ensure that the industry is free from health hazards that may render the industry unproductive. In addition, investors need to exclude employees from handling contaminated food to avoid passing illnesses from one person to another. It is a legal requirement that all food and beverages handlers have the relevant skills and expertise to handle food and beverages safely. Therefore, employees must relate well to the business they engage in and have necessary skills on the food safety and hygiene in food handling. For example, cooks need to have a range of competencies to prepare meals with a high level of knowledge and expertise. Conversely, a sandwich maker needs to have experience of making sandwiches that score the maximum points on hygiene and safety for human consumption. That is to say that food handlers need to have formal training and depict special expertise in food and security information. Food enterprises whether new or existing need to comply with facilities and equipment regulations. The premises should be easy to clean and have adequate sanitary facilities. In addition, the structures need to be appropriate for each category of the business, have sufficient space and necessary tools to produce safe food and beverages. The structures must have sewage, wastes disposal, and have facilities to maintain the health and hygiene of staff. The structures must be impenetrable to pests. The structures and materials used for building the structures should not contaminate the food and beverages (Food Standards, n.d). Wine and alcoholic handlers need to comply with the liquor licensing to ensure safe handling and sale of drinks to consumers. Investors need to comply with liquor laws that require the sale of wines to people with the set minimum age. In addition, investors need to comply with regulations that call for the sale of wines within the specified times of the day. Besides, the licenses require that business owners provide adequate sanitation facilities within their premises such as washrooms to allow customers meet that nature calls. The wine laws for producers and distributors necessitate that producers uphold highest levels of hygiene and safety while brewing the wines. The regulations ensure that the wines mature within the required timelines to provide right content of beers and wines. Incomplete fermentation of ingredients within the alcohol manufacturing can lead to health complications and can lead to death or blindness in users. Therefore, business operators need to comply with the industry rules and regulations to ensure continuous production and transportation of the products.

Support Services within the Industry

The Queensland Government supports the food and beverages market through assistance programs, commercialization of opportunities and intensive research. The marketing of opportunities is important because it opens the market to international investment opportunities and creates employment for many within and outside the state. Revenues from the industry add up the economy of Australia hence allowing for growth of the economy. The industry has the greatest number of employees in the economy. Due to many businesses in the industry, people are actively involved in developing and creating innovative ideas on the ways to improve the economy. There are numerous business support services offered by the government. According to Queensland Government (n.d), Australian Institute for Commercialization is crucial in assisting company investors and research companies to develop commercialization skills to open up their organizations to the domestic and foreign investment. The institute instills necessary information and expertise to investors to improve their productivity and hence improve the customers’ base. Therefore, the Institute plays a significant role in offering business support services to ensure that more people develop the will to start new businesses especially those not fully exploited and guide entrepreneurs in developing and expanding their bases and to open their markets to competition by other enterprises. Ideas2Market organization plays a crucial role in the commercialization and diversification of the food and beverages industry. The group organizes workshops to train and guide investors on the appropriate methods of commercializing their activities. The group aims at educating innovators to develop new ideas to improve the industry and training them on developing comprehensive business plans to foster development and exploitation of small sectors within the state. The body underscores the need to property ownership to set up business by offering advice on the intellectual ownership and management (Setiawan, Emvalomatis, & Oude, 2015). On the other hand, Queensland Wide Innovative Network is a body of dedicated personnel to oversee the provision of the government sponsor services across the industry (Queensland Governmen , n.d). The body ensures that needy businesses get government sponsor services to alleviate them from collapsing or leaving the market. The government understands the importance of providing a healthy environment for all companies either infant or existing to realize the potential and offer quality goods and services to consumers. In addition, a wide range of other business assistance programs renders support to the activities of the food and beverages industry. Queensland research is imperative to the improvement of the food and drinks industry. Research is critical in developing foods that are more resistant to pest attacks and those that can withstand unfavorable weather conditions (Queensland Government, n.d). In addition, the research organizations can develop crops with a high capacity for yields using limited land spaces. The advance is critical to increasing productivity in the food and beverages industry to foster production, processing, manufacturing and transportation of the foods and drinks to the market segments. The research is crucial in finding ways of developing foods with better nutritive constituents hence increased health benefits that enhance the manufacturing process. Quality products in most times lead to increased sales thereby improving the income generation for entrepreneurs. Many industry associations in the state strengthen the productivity of the industry. The organizations offer various assistance programs to the starters and help find the markets for foods on behalf of the individual entrepreneurs. The association exists in the diverse areas of the industry and assist members willing to start up new business and those that are in operation. The unions look into the interests of the members to ensure that they receive meaningful income from their business. The associations takes on the government in case of misunderstanding and endeavor to find rational solutions to the problems the members face in the course of their day-to-day business operations. Furthermore, the associations assist in determining inputs at low prices for the members thereby increasing their revenues. The associations are hardy in searching and identifying new markets both within Australia and New Zealand and in the international markets. Organizations also aim at luring foreign investors and tourists to visit their enterprises. The advance increases the incomes of the businesses and allows improvement within the food and beverages industry to ensure full productivity and high returns.

Queensland Australia has a diverse food and beverage industry. The industry offers safe, quality, and nutritious foods and beverages at affordable prices. The state has a collection of strict bio-security rules and regulations that ensure food safety. The industry encompasses small, medium, and large businesses that operate at each stage of the supply chain. Numerous universities offer programs in foods and beverages hence enhancing the industry with skilled labor force. Queensland foods and beverages market scopes from producers of fresh farm produce to producers of manufactured foods and drinks for consumption. The industry attracts the business of all types and kinds. The developed transport infrastructure allows for the food-processing, beverage manufacturing hospitality, retail, health, and distribution industries to thrive under the competitive food and beverage industry. Animal and plant products render the solid foundation of the industry. Getting involved in the food and drinks industry requires intensive research and planning. The industry offers attractive opportunities for all sizes of the businesses. Research is critical in exploiting new market segments, identifying possible market gaps, identifying existing problems and identifying strategies for use in competing within the food and beverage industry. The food and beverage industry offers various assistance programs to starters. Strict rules and regulations apply at each stage of the production, processing, manufacturing and transportation of the foods and beverages. Business starters need to familiarize with the stringent regulations to ensure compliance. Food safety regulations state the responsibilities of entrepreneurs in providing safe foods and drinks.  Compliance with the food safety regulations, obtaining the liquor licenses and complying with wine laws is essential to avoid fines and possible prosecutions. The Queensland Government supports the food and beverage industry through offering commercialization opportunities, research opportunities and business support services. Commercialization opportunities allow for diversification, creation of new jobs and attracting new investments. Research is critical in identifying crops that can withstand adverse weather conditions and with high nutritional content. Business assistance services assist companies in commercializing activities and sell products in the food and beverage industry.

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Food and Beverage Management

The food and beverage industry has remained essential over many years. Customers’ basic needs are met due to the significant association of the foodservice with lodging facilities. People always have reasons to travel, such as education, sports, medical treatment, or leisure. Thus, they depend on foodservice firms for meals. Moreover, the industry contributes significantly to the global economy. The 2020 estimation of the global market was estimated to be seven trillion dollars (Lund et al., 2020). In addition, as customer tastes and preferences vary, increasing demands for organic foods, consumption, and sales patterns continue to be the major trends in the world’s market. Streamlined manufacturing and established cold chain departments have further contributed to market growth. The essay will describe sustainable menus, their essence, and the key emerging trends facing food and beverage firms.

A sustainable menu is essential in the food and beverage industry. A sustainable menu considers a sustainable food system in the customer’s order and preferences. The sustainable menu follows a set of requirements such as providing healthy foods and establishing environmental, economic, and social mechanisms that revolve around food. It checks on the distribution of very sustainable foods, establishing sustainable diets, and minimizing food wastage throughout the supply system. The sustainable food system ensures that food delivered is secure and nutritious for all people that it does not comprise the economic, social, and environmental bases on food generation.

Besides, the Torch Club, NYU has a good instance of a sustainable menu. The club aims at making social and environmental decisions that address all the necessities of special ceremonies and catering services. The Club aims that provide a seasonal menu that sources food locally, minimize wastage and reduce impacts on the environment. Besides, improving food and services quality levels. The firm aims at customizing sustainable menus for events of different customers. Moreover, a sustainable menu can be achieved through various sustainable practices. The Torch Club ensures bread and bakery items are of fresh supplies by reliable artisanal bakeries available locally. All cutlery is of rapidly renewable content and uses green cleaning products that have reduced impacts on human health. Besides, they use locally sourced foods with ingredients grown, harvested, and locally produced. Moreover, maintaining and respecting all the qualities, pureness, and freshness of products for consumers.

The Torch Club menu contains several sustainable dishes. Their breakfast menu has a list where you can choose low-fat foods, including cage-free scrambled eggs, naturally smoked bacon, seasonal sliced fruit, French toast, roasted heirloom Fingerling Potato hash, assorted Yogurt Loaves, and Granola. Either option is served with cage-free tofu scrambles or organic egg whites, Starbucks decaf organic Serena and Tazo organic teas. For the lunch and dinner category, they have salad and entrée selections. The dishes include artisanal bread, Jansal valley Organic olive oil, and assorted Herbal Teas. Besides, they contain signature sandwiches with salad and sandwich selections. On the beverages, they offer soy and Almond milk, Tazo Organic Teas, seasonal fruit-infused Iced Waters, among others. Moreover, the Torch Club Menu contains policies that direct consumers on the minimum number of people an order can hold, for this case, ten people. Also, they contain cancellation policies and lists all the producers and growers associated with the food and beverage company.

A sustainable menu can increase sales and revenues for the food and beverage industry. Solomon, 2020 article states that Tastewise 2020’ study claimed that an additional twenty-three percent of the Americans prefer making their decisions based on sustainability that year. The research discovered that customers were willing to pay more to implement these sustainability changes. Solomon, 2020 adds that in another study, two-thirds of customers in the States would prefer paying more money for restaurants that uphold the green restaurant practices. In addition, Solomon, 2020 claims that the environmentally friendly menu has increased and established more revenue.

Moreover, the article addresses the advantages of a sustainable menu to the food industry. Solomon, 2020 claims that it leads to reduced costs of operation. Pacific Gas and Electric’s Food Service Technology Center noted that out eighty per cent of the annual ten-billion-dollar bill of the commercial foodservice industry was wasted on inefficient cooking and store equipment. Sustainable practices would reduce operational costs for restaurants by thirty per cent. Moreover, the sustainable menu and practices reduce employee turnover, thus increasing employee retention. People would always choose to work under brands that align with personal values (Higgins-Desbiolles et al., 2019). Sustainability is one of the restaurant practices that would promote workers’ morale in providing quality services.

Moreover, a sustainable menu can attract numerous customers. Solomon, 2020 claims that according to the National Restaurant Association, the research showed that sustainability is a major area of concern in the Millennials. The survey found out that fifty-eight per cent of people would prefer restaurants that have the capabilities to offer sustainably grown, raised, and manufactured food products. Moreover, marketing opportunities broaden with sustainability as branding a restaurant as sustainable will gain its media attention and beat competitors. Besides, saving energy, minimizing wastage, and undertaking sustainable practices have greater impacts on the planet and its environment, thus promoting growth.

On the other hand, new trends have evolved in the food and beverage industries. The demand for Planet-based foods increases as consumers require suitable lifestyles. Most vegan websites such as Veganuary.com give people tips on healthy eating without affecting the tastes of foods through consumer education on nutrition and balanced diets. The vegans are discouraging the high consumption of meat and encouraging dairy-free diets. Besides, there is the need to have chicken and meatballs be made from animal cells. The discouragement of having “lab to table” products and encouraging “farm to table” meat products is visible. Besides, in the UK, vegans are avoiding animal products (Epicor, 2020). The number of vegans has increased from 150000 to three million from 2006 to 2018. Moreover, ‘flexitarians’ choose specific days to avoid meat-eating.

Consumers require locally produced foods. In Britain, climate change is of concern compared to previous years (Epicor, 2020). A fifth of consumers run to brands that support and have better sustainability visions compared to others. People still want to eat healthily and fresh ingredients. There is the need to have minimal carbon emissions that would lead to climatic changes. Moreover, these consumers want to know the sources of their meat and dairy products. customers want to be confident they are from humane farms. In 2018, sixty-five per cent of meat buyers found traceability essential. The food and beverage industries will have to highlight their meat or product source, choose suppliers with high standard animal products and embrace meat and dairy-free products.

Indian Street foods are replacing asian street food. People want a different taste of the new types of cuisines. Indian cuisine has a variety of aromatic spices, fruits, and vegetables (Schuetzendorf , 2018). Besides, they are produced in fertile regions and need high-quality chefs. They have different cooking mechanisms and utensils required in the upcoming era. Besides, people prefer smoked and seared foods. Besides, other new flavours are on-demand, such as foods from Mexico, Cuba, the Middle East, and Korea, which are gaining fame (Epicor, 2020). Social media boosts these international cuisines when people share photos during travels and dining with family. It leads to more interest in new food exploration. Additionally, fast-casual demand rises as most people want swift home deliveries, self-service stops, and virtual access. Moreover, cryptocurrency as a form of payment is becoming common. It relates to the self-order stations.

Moreover, the use of cash on operations is phasing out. The restaurants can enjoy minimal bank deposits, theft, handling errors, and increased liquidity and transparency (Schuetzendorf , 2018). Payments are becoming easier through pin-less cards payments or Apple Pay. On the other hand, embracing values and ethics increases when connecting consumers in daily operations. Customers will continue to check on the presence of transparency and ethics other than the quality of the products only. Food and beverage industries will check on their commitment to embracing their missions and visions in providing services and foods. Companies will have to check on how to embrace farming production processes. Besides, ensure minimal waste and encourage recycling of re-usable products. Moreover, zero waste initiatives have played an essential role in banning disposable products such as straws, plastic bottles and coffee cups for single use.

Grab-Go and self-service kiosks trend facilitate human mobility. Customers are not only checking on healthy snacks but also need the best fast snacks. Companies have promoted the slow cooking of traditional recipes. Over two hundred and fourteen per cent product increase in 2017 was due to mentioning slow in the description of products (Schuetzendorf, 2018). Besides, Japan has had food and beverage kiosks across its cities, increasing market opportunities. Incorporating creative and innovative design could increase kiosks’ sources of revenue. It can be achieved at a marginal distribution cost which challenges the existing brick and mortar, restaurant models. Moreover, maintaining high food hygiene levels and perspective among these kiosks will be in high demand.

Homemade products are on the rise. The government has been encouraging the establishment of start-ups where micro-entrepreneurs are trying to carry out explorations. The concepts are being implemented in the food and beverage companies using delivery arena such as Grub Hub, Deliveroo, and JustEat, among others (Schuetzendorf , 2018). Most consumers want to have wholesome foods which require minimal effort. Besides, eighty-two per cent of food demands are from households. In Britain, most households prefer shopping with delivery services. Only sixteen per cent are demanded from offices, and weekends are the busiest delivery times. Moreover, the yearly growth is expected to be at 3.7 percent. The expansion of delivery services leads to demand for more chefs with more distinct products and a wide selection of food and beverage preferences catering to all ethnic groups.

Consumers are on the look on the Instagram able foods. They want meals and drinks that seem trendy and have a visually appealing look. People want to always share their discoveries through photography, where catchy meals will win the market quickly. For instance, sparkly mermaid toast and Frappuccino establish buzzes within a night. Social media websites help ingredients to reach out to more consumers. Some years ago, consumers heard about aquafaba and sea vegetables which are becoming more common and a great source of income. Manufacturers need to keep their tracking high on social sites to promote the supply chain and prevent scarcity of ingredients. Besides, the utilization of social media in product promotion will enable the establishment of Instagram-able product photos.

In conclusion, key trends in the current food and beverage industry transition the market. Consumers are looking for Instagram-able high-quality meals. The homemade products and laxity of in-home cooking have encouraged the demand for food supplied using home delivery services. Moreover, people want to go global where they want foods and beverages from other countries, thus growing the international cuisine. Additionally, vegans are influencing people to take dairy and meat-free products. People want produce from traceable farms. Besides, restaurants want to have cashless transactions where people can use line-less cards, among other payment methods. Moreover, crypto is among the methods yet to get embraced. Grab and go kiosks have promoted the cooking of high quality and slow traditional foods which are wholesome. On the other hand, a sustainability menu is a structure that follows the sustainable food system in promoting the provision of secure foods, has economic and social importance, and is environmentally friendly as much as human health is concerned. The Torch Club restaurant menu has a sustainable menu that minimizes wastage, considers ethical policies, and provides high-quality foods. A sustainable menu attracts new customers, promotes employee retention and turnover, and increases revenue, among other advantages.

Antasha Solomon 2020:  13 Easy Ways to Create a Sustainable Restaurant Menu (touchbistro.com)

EPICOR (2020):  Top 10 Food and Beverage Industry Trends for 2020 | Epicor UK :  article on Epicor website.

Frank Schuetzendorf (2018): Top 10 Trends in the Food and Beverage Industry (ehl.edu). A blog post for Hospitality insights website.

Higgins-Desbiolles, F., Moskwa, E., & Wijesinghe, G. (2019).  How sustainable is sustainable hospitality research? A review of sustainable restaurant literature from 1991 to 2015 .  Current Issues in Tourism ,  22 (13), 1551-1580.

Lund, S., Manyika, J., Woetzel, J., Barriball, E., & Krishnan, M. (2020). Risk, resilience, and rebalancing in global value chains.

Torch Club – Sustainable Menu PDF.pdf (nyu.edu)

Vegan Made Easy – A healthy plant-based lifestyle – Vegan.com

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Embracing the future of AI in the food industry

February 2, 2024

The food industry, a sector perpetually grappling with dynamic consumer demands, variable crop yields, and pressing sustainability issues, finds a potent ally in artificial intelligence (AI). As AI in the food industry weaves its way into various facets of production, from precision farming to quality control, it offers a beacon of efficiency and safety. This pivotal integration is not merely about technology; it's about reshaping the foundations of food manufacturing and product development, making way for a future where innovation meets sustainability.

AI's influence extends beyond mere production processes. It's changing how new food products are conceived, designed, and brought to market. Through AI-driven predictive analytics and machine learning, companies can now align closer than ever with consumer preferences, drastically reducing the trial-and-error of product development.

This synergy of technology and culinary science unlocks new possibilities in ingredient discovery, pushing the boundaries of what's achievable in taste, nutrition, and ecological impact. As we embark on this journey of AI in the food industry, we witness a sector transforming itself, ready to cater to a world that demands smarter, more sustainable food solutions.

AI in food production: A new frontier in efficiency and sustainability

The food industry is constantly challenged by shifting consumer demands, fluctuating crop yields, subpar safety standards, and an alarming level of food waste. In the United States alone, a staggering 30% of all food and drink is discarded annually, translating into a loss of approximately $48.3 billion in revenue . This is where AI steps in, offering a transformative solution. By utilizing AI in the food industry, we can significantly mitigate these issues, particularly in reducing food waste through more efficient practices.

AI's role in food production is pivotal, marking a shift towards more intelligent and sustainable practices. Advanced predictive analytics , driven by AI, enable accurate forecasting of weather patterns, enhancing crop resilience and yield. AI systems can analyze vast amounts of data to detect early signs of disease and pest infestation , allowing for timely and targeted interventions. Furthermore, AI-driven monitoring of soil and nutrient levels leads to optimized fertilizer usage, contributing to healthier crops and reduced resource expenditure.

The application of AI in food manufacturing also promises enhanced efficiency and safety. Automated AI-driven inspection systems are revolutionizing quality control processes. By employing predictive analytics, these systems can preemptively identify contamination risks and optimize supply chain management. AI machine vision systems are adept at scrutinizing product quality, ensuring only the highest standard goods reach consumers.

The outcome of incorporating AI in food production can lead to significant waste reduction, safer food products, and an overall boost in industry profits. By embracing AI, the food industry can advance towards a more sustainable and profitable future.

AI-driven innovation: Crafting the future of food products

The stark reality in the food industry is that around 80% of new product launches fall short , primarily due to consumer disinterest. However, AI is changing this narrative. Data scientists are now harnessing AI for predictive analytics , offering a deeper understanding of consumer preferences and trends. This approach significantly enhances personalization, elevating consumer satisfaction and success rates in product launches.

In the rapidly evolving landscape of food technology, the need to embrace emerging technologies has never been greater. Leading companies in the food sector are pioneering AI use, showcasing its versatility and transformative impact. From expediting product prototyping to mastering the precision formulation of plant-based alternatives, these examples underline the expansive potential of AI in redefining product development.

As we observe the remarkable strides made by Nestlé , Vivi Kola, and Climax Foods Inc ., it becomes evident that AI in the food industry is not only a tool but also a catalyst for innovation. These efforts demonstrate how AI can transform ideas into reality, reshape market trends, and create products that resonate with evolving consumer needs. The success of these initiatives serves as a testament to AI's potential to restructure food product development.

AI-powered ingenuity: Redefining ingredient discovery in food manufacturing

AI is proving to be more than a technological advancement; it's a game-changer in ingredient innovation. The traditional approach to ingredient discovery, often slow and resource-intensive, is being transformed by AI's capability to rapidly identify and develop new, sustainable ingredients.

Brightseed's Forager exemplifies this transformation. This AI-driven computational platform is transforming how we understand plant-based bioactives. Its machine learning algorithms don't just analyze the molecular composition of plants; they also uncover potential health benefits, paving the way for creating unique and beneficial ingredients.

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When The Not Company developed its first product, NotMayo , the process took 10 months. Since then, Giuseppe has increased efficiency for every subsequent product, with NotChicken taking only 2 months. By using available AI technology, companies can rapidly increase their efficiency, reduce their development costs, and quickly get the best products into the hands of their discerning consumers.

By harnessing AI in ingredient innovation, food scientists are not just creating new products; they're reshaping the landscape of food manufacturing. This technological leap grants them a competitive edge, allowing for quicker market introductions of sustainable and innovative ingredients. The potential of AI in the food industry is boundless, offering exciting prospects in R&D efficiency, new revenue streams, and a revolution in the food industry.

Shaping the future of AI in the food industry

As we stand on the cusp of a new era in the food industry, the integration of AI emerges as a pivotal force in redefining its future. Companies that strategically embrace AI are not merely adapting but forging a path toward unparalleled success and sustainability. The choice is clear: evolve with AI and lead the change or risk falling behind in a rapidly progressing world.

In an industry characterized by relentless change and diverse consumer expectations, AI is the cornerstone for innovation and safety in food production and manufacturing. The leaders and visionaries of the food industry who welcome AI are not just adopting technology but championing a movement towards smarter, more sustainable food solutions.

The journey with AI in the food sector is one of both discovery and triumph. With each step forward, we unlock new potentials in efficiency, creativity, and growth, marking a transformative chapter in the history of food technology.

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Eco-Friendly Packaging for Food and Beverage Industry Essay

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Introduction

Starting a company is a challenging experience. It requires conducting a thorough study of local and global markets with the aim of determining gaps to fill and products or services to upgrade. Moreover, it is impossible without an in-depth understanding of concepts and principles of operations management that is the foundation of running a business effectively. This paper will focus on identifying the product that a newly created company will produce and determining all vital details regarding the organization of future work.

Selecting a Product

Nowadays, the world community is highly concerned with the issues of environmental protection. That is why sustainability has turned into one of the most popular trends in doing business. It can be easily explained by the fact that consumers worldwide prefer purchasing environmentally friendly products – those manufactured with minimal impact on the natural environment. The concept of sustainability in manufacturing rests upon two principles – decreasing the emission of greenhouse gases into the atmosphere using recyclable resources during the very process of production and falling upon renewable sources of energy during both production and transportation stages.

Bearing in mind the fact mentioned above, the idea for creating a company is to produce eco-friendly packaging. The focus will be made on the food and beverage industry, i.e., the aim is to manufacture environmentally friendly packaging for edibles. This product was chosen because of the direct impact of the quality of food products on the health of ordinary people regardless of the region of living of country of origin. What is meant by the statement mentioned above is that it is impossible to care for the well-being of people without thinking about the natural environment?

Production of environmentally friendly packaging is a beneficial choice for starting a company. First of all, most negative aspects of choosing sustainability as the path for developing business are connected to investing in upgrading equipment and following required standards of quality. In the case of launching a new business, this challenge is possible to avoid because there is an opportunity to buy appropriate technologies at the very beginning of setting up the production process. Moreover, this decision is closely related to both the environmental and economic aspects of doing business. Environmentally, the impact on the natural environment is minimal due to using recyclable resources for production and renewable sources of energy during manufacturing. Furthermore, it is a significant contribution to solving the problem of climate change. From the economic perspective, eco-friendly packaging is more cost-effective due to spending fewer resources and materials as well as low levels of waste connected to the production process. Finally, there is a psychological aspect that should not be ignored. Because most consumers around the globe are concerned with the industry-related negative influence on the condition of the natural environment, they give preference to environmentally friendly products. Once food and beverages are sold in eco-friendly packaging, it will definitely draw their attention and win markets.

Determining Target Market

As was mentioned before, the primary focus will be made of the food and beverage industry. Eco-friendly packaging might become a perfect option for underscoring that offered products are absolutely healthy, winning the hearts of those consumers who prefer organic food. In the first place, it is planned to choose several sectors of the food and beverage industry in order to test the attractiveness of the new product. For example, producing eco-packaging for such popular products as sweets, chocolate, coffee beans, cocoa, juices, water, nuts, and even wine might become a perfect solution for entering the market. Once manufacturers get used to the idea of environmentally friendly packaging and realize its popularity, it might be possible to expand the assortment of products manufacturing packaging for cereals, fruit, and vegetables, and even semi-processed meals, not to mention organic detergents and beauty preparations. The primary objective is to persuade manufacturers of food products that

• it is more economically beneficial to cooperate with a newly created company than invest in upgrading currently exploited equipment (it might be especially reasonable in case of small manufacturers), and
• consumers prefer eco-friendly packaging, so it is better to work with a company producing one instead of using traditional packaging ordered from others companies that ignore the recently established trend toward sustainability and environmental friendliness.

Crafting Product Design

Common packaging is usually produced of foil and plastic. It means that there are several layers of hardly or nor recyclable materials used for producing it. It can be explained by the impossibility of separating these layers 1 . The idea for crafting the design of eco-friendly packaging manufactured by the company is to use absolutely flexible and recyclable materials such as paper and paper pulp as well as already recycled materials. There are several reasons for choosing them. First of all, these materials are safe and will highlight the healthful nature of food and beverages sold in such packaging 2 . Moreover, because they are flexible and mechanically strong, they can be easily adapted to suit any shape and size thus becoming a perfect choice for any product and satisfying needs of any manufacturers 3 . Finally, these materials are made up from already recycled materials, i.e. consumer waste, making them absolutely safe, cost-effective, and environmentally friendly 4 . So, the idea is to make a produced packaging totally environmentally friendly because if it is produced using both recyclable and non-recyclable materials, it cannot be considered eco-friendly and is non-recyclable.

Speaking of the design, the primary idea is to make a package bright and appealing in order to draw attention of the consumers and encourage them to buy a product packed in it. This goal can be easily achieved because paper and paper pulp are printable 5 . Moreover, it is planned to make a package minimalistic so that only major information is included such as the name of the product and ingredients. The idea is to print name of the product in plain, bright text so that it is easily noticed. The same is true for such words as ‘safe,’ ‘healthy,’ and ‘eco-friendly’ that will point to the characteristic of both product and packaging. As for the rest of the information, it is proposed to make it less bright in order to avoid distracting attention from the most significant details. Furthermore, it is essential to highlight that the packaging is made of recycled materials and is eco-friendly. Otherwise, there is no sense in creating a company as starting this business because it will not stand out against competitors. For this reason, recyclability will be indicated in a generally known manner – with a cycle of green arrows. To sum, this bright simplicity is believed to hint at environmental friendliness and connection with nature. Finally, it is essential to note that the companies will be offered an option of individual design in order to satisfy their needs and expectations. However, the primary details will not differ from the concept of design mentioned above.

Managing Supplies and Distribution Process

Supply management will be organized on the basis of three essential elements of effective managerial system. That said, it will necessarily involve appropriate choice of suppliers, planning and monitoring supply activities, and improving supplier capability 6 . Suppliers will be selected if they meet several requirements. Primary criteria are the quality of materials and flexibility of volume and delivery policies. Of course, it is imperative to take into account the price of resources and responsiveness of supplier as well as the ability to change the size of batches if necessary. Finally, it is also vital to choose suppliers from the perspective of establishing long-term business relations. Moreover, the opportunity of multi-sourcing, i.e. purchasing material from different suppliers, will not be ignored in case if it guarantees better quality of delivered material thus improving quality of an end product.

As for planning and monitoring supplies, the organization of this step will be based on several details. First of all, the needs in materials will be estimated on a timely basis keeping in mind manufacturing capacities and volumes of production. The idea is to conduct it twice a month and order material considering the necessity of creating reserves. However, it is imperative to note that the company will not order large batches of material before it becomes popular and fills particular segments of the market. As for monitoring supplies, it will involve a series of procedures such as checking the volumes of delivered materials and prices in order to avoid discrepancies and find responsible and reliable supplier to work with in the future. Finally, improving supplier capability stands for investing in supplier in order to guarantee long-term and trust-based relations. It has four dimensions – technical, operations, managerial, and financial capability. At the very beginning of bringing the project to life, it will be possible to improve managerial capability, i.e. share management talent and energy in order to set the foundation of the future cooperation 7 .

Here, it is also imperative to mention the concepts of lean manufacturing. It is believed that this philosophy focusing on eliminating waste will benefit the company because of reducing spending on materials as well as improve performance and serve as the foundation of success. Based on the principle of this approach to management, material will be ordered when necessary and in volumes required for production. Moreover, overproduction and over processing will be avoided in order to guarantee economic value of work and skip unnecessary losses. Finally, the emphasis will be made on constant improvement of both the product and people creating it in order to eliminate defects and boost productivity 8 .

As for managing distribution process, it will be based on channels of physical distribution, often seen as synonym to logistics. At first, the company will require one distribution center because of the initially small size. As for transportation, it will seek the assistance of transportation companies or delivery services. However, once it grows bigger and more powerful, the scopes of distribution and delivery departments will expand to international deliveries with distribution centers located across the country and the globe.

Making Up Cost

The cost of the proposed eco-friendly packaging will be calculated on the basis of several constituents. First of all, it will include material costs. This determinant is a combination of spending to purchase resource and deliver it as well as storing it and other premises related to resource dimension. Another constituent of cost is manufacturing process cost. This one is a complex element because it incorporates wages, storage and energy costs, handling of returned packages, amortization of machinery and equipment, etc. This item is constantly changing due to changes in the labor market or because of the necessity to change or fix equipment. Another article of expenditure included in the cost of packaging is distribution and transportation costs connected to spending on deliveries and working with consumers, i.e. promoting the product, as well as retailer costs or those caused by incidents during transportation or industrial accidents. Finally, packaging cost will incorporate miscellaneous spending not falling within the categories of expenditures mentioned above 9 .

Moreover, it is worthy of mentioning that the cost will be calculated with an insignificant reserve in order to guarantee sustainability of the company and design the system of discounts for regular customer. In addition, it is imperative to note that the cost is directly connected to the volume production because the higher manufacturing rates are (e.g., the bigger an order is), the lower cost it implies.

Quality Management

Quality is the foundation of success because, without guaranteeing high quality of the end product, food and beverages manufacturers will not become involved in cooperation with the company and seek other partners. That said, quality management is the critical element of running the business. The concept of quality will be viewed from several perspectives. First of all, the quality of raw materials will be estimated. Paper and paper pulp used for producing environmentally friendly packaging should be flexible and thick in order to ensure that the packaging is mechanically strong and is not damaged quickly. Except for materials, all additional resources such as ink for printing titles and product information should be of high quality so that the product is bright and the image does not wear out quickly. In addition, it is vital to promote employee involvement, i.e. improve workforce quality. The motivation for highlighting this step is the fact that better employee performance entails better quality of the end project.

Finally, the quality of the product itself should be controlled. Because the company gets involved in the production of recyclable and environmentally friendly packaging, it is essential to make sure that the end product meets these requirements. For this reason, it is recommended to design inner standards of quality and control each batch to find out whether they are kept. For example, tightness of the packaging and brightness might serve as additional determinants of quality not to mention serviceability, flexibility, and lasting properties. That said, the whole approach to quality will be based on the concept of quality gate, i.e. reporting progress and estimations at each stage of production and proceeding to the next levels of manufacturing once previous ones meet particular inner standards 10 . In addition, it is paramount to comply with governmental and international standards for recyclable products and manufacturing such as some ISO standards.

Hiring Employees and Dealing with HR Issues

People are the key to success. Working in the manufacturing sector will require hiring professionals with enough knowledge and skills to use offered equipment and produce eco-friendly packaging of high quality. When launching the company, it will not require many workers. Because the scope of operations is limited to several sectors of the local food and beverage industry, hiring process will begin with five people. However, in case if company succeeds, more staff will be employed. Initially, all HR functions will be carried out by senior manager, who will control both hiring process and employee performance, motivating them to increase productivity and improve quality of produced goods. Nevertheless, once the company expands to more than twenty people or nationwide scale, HR managers will be necessary in order to create an opportune atmosphere stimulating trust and openness in the working place.

Furthermore, it is imperative to have a designer. The rationale behind this statement is the fact that the project is a creative one and it will require constant upgrades of design. In addition, because the company will offer an opportunity to order individual design, it could not handle this task without a professional. That said, the number of those employed is directly connected to the scopes of operations and success of the project. However, senior manager, designer, and those running manufacturing equipment are the skeleton of the business, determining the direction of its development and the rate of growing stronger and winning market.

Scope of Operations

At the initial stages of operations, it is planned that the company will remain local. There are several reasons for making this decision. First of all, it is motivated by the desire to test the attractiveness of the proposed design and product as such. Once it becomes popular and manufacturers working in most sectors of the food and beverage industry are interested in cooperation, it might become reasonable to expand the scopes of operation. The idea is to make it nationwide and go global once there are enough resources to move production abroad or, at least, unwind manufacturing and organize transportation to all countries desiring to collaborate. It should be mentioned that the focus of the company will be made on small manufacturers because producing their own packaging is challenging because of small size.

To sum up, the process of creating a company and setting up its operations is time-consuming and intricate, requiring an in-depth understanding of principles and concepts of operations management. However, having a clear perception of market needs and product design are closely related to success. That said, it is planned that the company will manufacture eco-friendly packaging. Bright but, at the same time, simple, it will hint the customer of recyclability and safety attracting attention of people, who actively support the protection of the natural environment and minimization of industry-related influence on it. The business will be launched in food and beverages industry and evolve from several sectors to the whole industry as well as from the local scope to nationwide and global dimensions. The foundation of running the company is the combination of supply and lean management principles together with the recognition of the fact that people and creativity are the drivers of success.

Bibliography

Berk, Zeki. Food Process Engineering and Technology. London: Academic Press, 2013.

Muthu, Subramanian. Environmental Footprints of Packaging. Singapore: Springer Science +Business Media, 2016.

Natarajan, Palamadai, Vijay Govindarajan, and Binod Kumar. Fundamentals of Packaging Technology. Delhi: PHI Learning, 2015.

Raturi, Amitabh, and James R. Evans. Principles of Operations Management. Boston: Cengage, 2005.

Reyes, Joel. “Eco-Friendly Packaging Concepts.” Design Reviver. Web.

Paine, Frank. Modern Processing, Packaging, and Distribution Systems for Food. New York: Blackie, 2012.

Wu, Amy. “Good Product, Bad Package: Top Sustainable Packaging Mistakes.” The Guardian. Web.

• Amy Wu, “Good Product, Bad Package: Top Sustainable pPackaging Mistakes,” The Guardian.
• Palamadai Natarajan, Vijay Govindarajan, and Binod Kumar, Fundamentals of Packaging Technology ( Delhi, India: PHI Learning, 2015), 139.
• Zeki Berk, Food Process Engineering and Technology (London, United Kingdom: Academic Press, 2013), 625.
• Subramanian Muthu, Environmental Footprints of Packaging (Singapore: Springer Science +Business Media, 2016), 110
• Joel Reyes, “Eco-Friendly Packaging Concepts,” Design Reviver.
• Amitabh Raturi and James R. Evans, Principles of Operations Management ( Boston: Cengage, 2005), 228-235.
• Ibid, 282-290.
• Frank Paine, Modern Processing, Packaging, and Distribution Systems for Food (New York: Blackie, 2012), 124.
• Jack Meredith and Samuel Mantel, Project Management: Managerial Approach (Hoboken, NJ: John Wiley & Sons, 2012), 485.
• Dell Incorporation Environmental Goals
• Sustainable Product Packaging in the Australian Market
• Betapharm Company's Eco-Friendly Strategy
• Sole Proprietorship, Its Benefits and Limitations
• Meeting the Challenge of Corporate Entrepreneurship
• Innovator’s DNA: Entrepreneurial Assessment
• Corporate Entrepreneurship in Family Firms
• Silicon Valley's Entrepreneurship and Innovation
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2020, August 16). Eco-Friendly Packaging for Food and Beverage Industry. https://ivypanda.com/essays/eco-friendly-packaging-for-food-and-beverage-industry/

"Eco-Friendly Packaging for Food and Beverage Industry." IvyPanda , 16 Aug. 2020, ivypanda.com/essays/eco-friendly-packaging-for-food-and-beverage-industry/.

IvyPanda . (2020) 'Eco-Friendly Packaging for Food and Beverage Industry'. 16 August.

IvyPanda . 2020. "Eco-Friendly Packaging for Food and Beverage Industry." August 16, 2020. https://ivypanda.com/essays/eco-friendly-packaging-for-food-and-beverage-industry/.

1. IvyPanda . "Eco-Friendly Packaging for Food and Beverage Industry." August 16, 2020. https://ivypanda.com/essays/eco-friendly-packaging-for-food-and-beverage-industry/.

IvyPanda . "Eco-Friendly Packaging for Food and Beverage Industry." August 16, 2020. https://ivypanda.com/essays/eco-friendly-packaging-for-food-and-beverage-industry/.