Business Logic for Sustainability: A Food and Beverage by Aileen Ionescu-Somers;Ulrich Steger

By Aileen Ionescu-Somers;Ulrich Steger

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Moreover, change overnight is unfeasible as the issues are both controversial and complex and resistance in the ranks of managers needs to be dealt with. To be able to take more ‘giant steps’, the focus of the F&B industry BCS in the future must turn to addressing the gap between consumer awareness and the positive steps that some companies are making. In the current unprecedented context of high fuel prices, shifts of cereal production to bio-fuels provoking the highest food prices in decades, emerging economies vying with developed countries for resources from energy to metals to food, and uncertain global economic and social stability, it is by no means a foregone conclusion that corporate action in the F&B industry will substantially accelerate the cause of sustainable development in the short or even medium term.

For this reason, it is popular with investment buyers, and attracts institutional investors with diversified portfolios (the relevance of capital markets to sustainability is explored in Chapter 4). While F&B companies went through a difficult period in the late 1990s, seeing their market value decline, with investors steering towards technology, media and telecommunications companies, the sector is now increasingly attracting the attention of private equity buyers as a result of the bust of technology stocks and the trend towards consolidation.

Finding the right language for communicating with consumers about sustainability is a major challenge that marketing managers (conservative by nature and with ever more short-term targets) are unwilling to take on, and indeed they currently lack the skills for so doing. Relatively little has as yet been attempted by the industry to change the dynamics between the industry and the consumer. We identified some key players that are seeking breakthroughs through linking sustainability with other more personal benefits to consumers, thus using sustainability as a driver to enhance the brand, and trying to prove that sustainability does, in fact, sell.

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