Executives at food and beverage companies predict improved revenue and profitability this year and next, with 59 percent expecting the sector to recover ahead of the economy as a whole, according to the latest KPMG survey. Here are more findings by the audit, tax and advisory firm:
- About two-thirds of respondents say revenue and profitability is better now than a year ago
- In terms of job prospects, 39 percent of respondents were more optimistic about employment in the sector over the next year
- Hiring plans are in the works for 51 percent of senior food and beverage executives. But they only expect to add one to three percent to the existing headcount
- Nearly half of executives say their company’s ability to get financing and capital has improved over the last six months
- Product and merchandising advancements were seen as the biggest revenue drivers, with 89 percent saying product innovations would promote growth and 82 percent saying new merchandising strategies would increase profitability
- Mobile internet use by consumers is predicted by 39 percent of executives to most positively impact industry recovery. On the flip side, 64 percent of respondents thought high national unemployment would most likely hinder recovery
- When asked whether growth or cost cutting is now a strategic focus, 61 percent of executives chose investment and growth while only 39 percent selected cost cutting
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