Food & Beverage
As consumers increasingly seek value in food and beverage on one end and quality and convenience on the other, manufacturers and retailers need to find new avenues to differentiate their offerings, maintain growth and offset competition.
L.E.K. Consulting has completed more than 600 engagements in the food and beverage industry, including over 160 engagements in transaction support for private equity firms. L.E.K. is a trusted advisor to leading global food companies across a variety of categories and throughout the food and beverage value chain. Our advisors play a pivotal role in helping food and beverage manufacturers and retailers design and activate strategic programs, gain loyalty with fickle consumers, pinpoint overlooked and underserved customer segments within a market, pioneer new markets and product categories, improve operational efficiency, optimize trade spend, and engineer efficient supply chains.
Key Questions and Challenges
Our experienced professionals have a deep understanding of food and beverage manufacturers’ business challenges in today’s marketplace, and L.E.K. encourages these clients to ask themselves a few key questions:
- What is a winning value proposition to delight our customers and consumers?
- How do we position ourselves to capitalize on long-term consumption trends and growing interest in the area of health and wellness?
- What is our ecommerce and digital strategy?
- How do we compete in an hourglass economy?
- How do we capitalize on the growing Farm to Fork movement?
- How can we optimize our trade spend in light of every-day low prices (EDLP), evolving channel dynamics and changing consumer sentiment?
- How should we organize our resources to capitalize on changing consumer needs and trends?
- What is our Strategic Market Position (SMP), and how do we leverage our capabilities to enable future growth?
- What is our acquisition strategy? What capabilities should we build to more efficiently acquire and integrate companies?
- What is our pricing strategy?
- How does our Price Pack Architecture need to evolve to better meet the needs of consumers and retail partners?
- How can we engineer our supply chains to drive out costs and increase profitability?
Examples of Our Work
To learn more about how we help clients create value in the food and beverage sector, please refer to these insights and case examples:
- A global Fortune 500 consumer foods products company with a strong core business saw opportunities to expand its presence in several meal and snack categories. L.E.K. was engaged to assess whether the company should enter specific categories internationally, and how it should do so — organically, via partnerships or through acquisition. Read more
- A food manufacturer was seeing its sales drop dramatically as competition intensified. The company asked L.E.K. to assist the management team in establishing a new company vision and developing a strategic plan that would provide a platform for growth, diversify the business and ultimately enhance shareholder value. We re-energized the company by transforming it from a mature business to a dynamic, growth-oriented company, and played a key role in implementing many of the recommended initiatives. Read more
- Food and beverage industry executives are struggling to win share during a time when the economic playing field is changing dramatically. The American middle class has traditionally powered consumer spending, but unyielding economic pressures have taken a significant bite out of their spending power. What’s emerged is an hourglass economy that has growing markets for affluent consumers at the top and lower-income consumers at the bottom. L.E.K. provides strategies for food industry executives to better position themselves for growth in this changing market. Read more