Impacts of Brexit on Food and Drink Industry | FTI Consulting

Impacts of Brexit on the Food and Drink Industry

Strategic Communications | Economic Consulting

October 30, 2017

FTI Consulting is an independent global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes.

With dedicated teams in key political and commercial capitals, FTI Consulting is well placed to help you navigate your Brexit challenges and manage commercial risk. Our Brexit Leadership team outlines the key issues facing the food and drink industry and what companies should be focusing on amidst the political uncertainty.

The Food and Drink industry has already been facing multiple issues impacting performance:

Economy

  • Slow economy
  • Rising commodity prices
  • Food price inflation
  • E-commerce taking market share
  • Global competitiveness

Strategic Challenges

  • Adding value to products with value decline
  • Business consolidations and brands buy-outs
  • Slow product innovation cycle: need to react quickly to changing demand
  • Need to differentiate in saturated market

Consumer Preferences

  • Reduce sugar while maintaining flavour
  • More natural and organic products
  • Growth of snacking
  • Reputational and consumer trust issues (clean labels)
  • Parliament created ad ah hoc Emissions Measurements in

Regulations

  • Marketing restrictions on products High in Fats, Sugar, Salt (HFSS)
  • Traffic-light labelling regulations
  • Sugar, fat and alcohol taxes
  • WHO food and nutrition policy recommendations
  • Trade challenges: geographical indications, tariffs & quotas
  • Fragmented supply chains (e.g. egg scandal)

More Info

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