Conducted this spring, the KPMG “2013 Food and Beverage Outlook Survey” consists of the responses of 100 US senior executives. Most respondents (58%) expect their companies’ capital spending to increase over the next year, but more than a quarter (28%) expect it to stay about the same. During the same period, nearly half (48%) expect the biggest overall spending increase to be for geographic expansion, while less than a third each cited acquisitions (33%), expanding facilities (31%), and new products and services (28%) as their largest anticipated spending increases. For most executives (81%), revenue in one year is expected to increase, with almost half (49%) expecting growth of at least 6%. Pricing pressures (51%), volatile commodity/input prices (31%) and labor costs (28%) were cited as the most “significant growth barriers” over the next year. The three biggest drivers for revenue growth for the respondents’ companies over the next three years are expected to be product innovations (38%), adding customers (35%), and alternative sales channels and distribution strategies (25%). The regulation their organizations are most focused on are the Food Safety Modernization Act (82%), healthcare reform (38%) and product recalls (36%).

Source: KPMG