White Paper: Managing Business Risk In The Food And Beverage Industry

Times have changed considerably for food and beverage companies selling whole or minimally processed products. Most started out as one-person or family operations years ago and have grown into sophisticated vertically integrated enterprises offering one-stop niche brands, solutions, and services. Some are cooperatives representing hundreds or thousands of small members who harvest fruits, vegetables, nuts, grains, coffee, tea, water, meats, or fish. Others are successful producers, processors, or distributors that have grown into sizable businesses in their own right.

Cooperatives—along with larger processor and wholesaler businesses—have taken on the role of overseeing the processing, storing, and distributing of goods as well as the marketing and customer relationships. They are responsible for long-term strategies, marketing contracts, operational improvements, regulatory compliance, capital expenditures, acquisitions, and pricing strategies. As companies expand into new markets, they must meet additional regulations and serve more demanding customers. This puts their ability to maintain profitability (and increase pay prices in the case of co-ops) at risk.