Technology Will Drive Food Industry Growth, Finds KPMG Survey

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Food and beverage industry executives see technology as the greatest driver of future growth, finds KPMG LLP’s 2013 Food and Beverage Industry Outlook survey. Respondents, which include 100 US-based senior executives from companies with annual revenues over $1 billion, say that social media, mobile and online marketing and cloud computing are creating new opportunities to engage with consumers and explore new business opportunities.

“The food and beverage industry is experiencing significant change,” said Patrick Dolan, national line of business leader for consumer markets at KPMG LLP, in a press release. “Technology is redefining how companies identify growth opportunities, operate their businesses, and manage risk – and the companies that adopt and utilize these tools most effectively are positioned to capitalize on improving business conditions.”

Nearly two-thirds of executives say they have adopted or plan to adopt cloud technologies, with 44 percent saying it will dramatically shift their business model and 78 percent believing it will increase transparency. Interestingly, while cost reduction is a goal with cloud computing, the survey indicates that executives are equally, if not more, interested in technology adoption for strategic, “transformation” purposes.

Executives are also increasingly recognizing the value of using data and analytics to improve decision making related to consumer insight, brand and product management and pricing. Despite this growing interest, however, 46 percent rate their data and analytics capabilities as average or below.