Daniel Misra-Jones

What’s the “Funding Gap”? At Mission Ventures, we’re convinced a significant gap exists for UK Food and Drink SMEs (and in particular, healthier challenger brands). It’s defined as: ‘…the difference between the amount of financing small businesses need and the amount they can obtain’. I’d like to gain your perspective on this; What is the funding gap according to you and more importantly, what are the best mechanisms to address it? Please complete this survey: https://lnkd.in/edc5-UuB It won’t take you more than 5 mins. Promise.

9

1 Comment

Tesco accounting for nearly half of total market sales growth is the key take-out from Worldpanel by Kantar's UK market data for 12 weeks ending 1st September released this morning. A slightly shorter review this period as I take a break in sunny Paxos! 12-wk sales grew by 3.0%, up from the last 12-wk period figure of 2.3%, with Grocery inflation at 1.7% in the last 4 weeks. #tesco has achieved their highest market share since January 2022. Their £469M growth in sales YoY accounts for 49% of total market sales growth whilst #sainsburys growth contributes 29%. #asda continue to struggle with sales down % YoY. The rate of fall in share is escalating. In March this year their share was down by 0.5% points YoY (14.3% to 13.8%). By June it was down by 0.9% points. Now it is down by 1.2% points. The question is when will this bottom out? Plans are in place to improve store standards and availability, but will these be sorted in time for the golden sales period of Christmas? #morrisons performance has been steadily improving since the Spring, but they still lag behind total market growth. They recently jumped on the ‘loyalty card exclusive price offers’ bandwagon, announcing over 2000 More Card price promotions, and added more items to their ‘Aldi & Lidl Price Match’ scheme. This will help, but I can’t stop thinking that a renewed push on their long-time USP, that of the unique Market Street in-store concept, will help them differentiate and potentially gain new customers who are bored with most of the main supermarkets all taking similar strategies. #aldi’s growth rate has been behind total market growth for the last 8 periods. Granted, they are annualising against 17% YoY growth this time last year, but concern will be high at head office level, especially as seasonal orders for Q4 this year may well be based on expected growth whereas the opposite is happening. #lidl’s growth of 9.1% remains impressive – in particular as they too are annualising against strong growth this time last year (16%). Their re-introduced ‘free bakery item’ offer (via the Lidl Plus App) was run throughout August – likely one reason for this further period of good performance. All eyes will be on the Christmas ranges being introduced over the next few weeks. Exciting NPD is expected, but will all the retailers deliver? #ukretail #supermarkets #competition #waitrose #coop #brands #privatelabel International Private Label Consult (IPLC)

675

36 Comments

Fraught with challenges like inflation and supply chain disruptions, the resilience and innovation of FMCG companies are truly inspiring. The latest Alantra Fast 50 report unveils remarkable growth rates among top-performing businesses, with a notable trend emerging: an increasing number of female-led companies taking the lead. From CBD drinks brand Trip to Rheal and Vegetarian Express, female-led businesses are spearheading this surge, reflecting a positive shift towards greater diversity and inclusion in the FMCG industry. With more women breaking barriers and driving success in FMCG, we're witnessing a transformative shift towards a more inclusive and equitable future. At Manners Maclean International, we recognise the invaluable contributions of diverse talent to organisational success. As executive search recruiters, we're committed to championing diversity in leadership roles and empowering businesses to thrive. Let's continue to celebrate and support the remarkable achievements of female leaders in FMCG, and together, pave the way for a brighter, more inclusive future. #DiversityandInclusion #FemaleLeadership #FMCG

2

For Hundreds if not thousands of years Alcohol has had centre stage but almost every occasion. And with good reason for many people, Alcohol is a fun facilitator of good times. As an Englishman, I drank, when I was happy I drank when I was sad I drank when I won and I got drunk when I lost. I drank when someone was born and I got very drunk when someone died. Even somewhat ironically at the wake of someone who died of alcohol poisoning. Alcohol has owned so many moments of my life. Now we hear that there is a a new sobriety movement, one if I’m honest, I don’t actually believe in, can exclude yourself from something you don’t have interest in in the first place? This new endeavour by Heineken as a sage warning of what listening listening to focus group does to a brand The more I see reports from strategic specialists marketing experts and social gurus. The more utterly unhinged it looks so far detached from reality but it makes you wonder if they know if they’re phoning in or not? If so many people in so many companies I just finishing the next project around them before the House of Cards of nonsense statistics dead end questionnaires and do nothing data comes to haunt them. And I think this is one of the key reasons that Beverage is struggling is because it’s losing its grip on reality, because when we look at beverage, it should surprise it should delight it should excite and it should be a utility for people, simply put liquid is a human necessity. If you look at the data and you come away with ‘people spend a lot of time in the digital realm even when they are busy in the physical’. You have to ask if the real solution to that is Phone without apps, destined be sad, branded landfill. Rather consumers telling you that they’re bored with your offering and they can’t have that attention capture anymore because what we’re really looking at is a generation of people that are tired for settling for mediocrity. And anyway, I need apps on my phone because I need to be able to get home from the pub and whether that’s Uber or TFL you’ll need an app for that P.S If you are kind of person that is now going to correct me, and say if I’m reposting this if I’m talking about it then it’s doing a good job. Then, you are one of the people I’m talking about, because you’ll say there’s no such thing as bad publicity but I’d ask how the guitarist of lost prophets feels about the statement.

25

5 Comments

Why do British Frozen Food Federation members enter their products into our annual awards? Does winning make a difference to a consumers view of a product? How does a winner’s logo on product packaging influence consumer buying decisions? I am often asked these questions by entrants, so we decided to find out from Vypr’s 80k strong consumer panel. The results are powerful when considering the value of awards and how to promote winning products. '54.45% respondents are more likely to select a frozen product with a British Frozen Food award winner’s logo on pack' This was great to hear, but why do they think that? '53% of Millenials place a high value on a BFFF winner’s logo, perceive higher quality and find the award particularly reassuring' '45.85% of overall consumers also view a winner’s logo on pack as a sign of higher quality' Highlights of the research show that: Older consumers (aged 55+) particularly value the safety standards implied by the logo, which suggests its potential to resonate across age groups by addressing both quality and safety. Millennials are the demographic most likely to associate the British Frozen Food Awards logo with high quality, viewing it as a trusted seal of approval. So, including an awards logo on packaging can enhance product credibility and consumer trust, especially when targeting millennials and quality-conscious shoppers. A connection between the logo and product standards in marketing communications can further strengthen consumer confidence in the frozen food category. On top of this your products are judged across the UK by 18 consumer panels of twelve people, and a panel of professional chefs, giving your product exposure to your potential market. Take this opportunity and enter the 2025 awards today with the deadline for the retail products is fast approaching on Friday 6th December (extended from the original deadline due a website outage) - do not delay! The Foodservice deadline is 31st January 2025. For more information on categories, the process, and entry forms visit: https://lnkd.in/e8qyj7ta #FrozenFood #ThinkFrozen #FrozenFoodAwards

36

4 Comments

I try and read the papers in the morning before doing a PT session or taking the dogs for a [very muddy walk]. Always keen to read up on what’s going down in Consumer Products and Retail and of IBM’s clients. The foodservice sector is ginormous, with various sectors. It plays a vital role in supporting businesses, schools, healthcare, and events providing catering and facility management solutions. It is a dynamic industry shaped by evolving consumer needs, increasing demand for convenience, and a growing emphasis on sustainability abd innovation. Companies like our client Compass Group lead the way in adapting to these trends, offering tailored services that range from office canteens and event catering to unstaffed food solutions. Compass operates in about 30 countries and employs over 580,000 people. Dating back to 1941, it has evolved into a global powerhouse, serving diverse clients from schools and offices to hospitals, sports venues, and oil platforms. They reported revenues of $42 billion for year ending September 2024. That’s a lot of chicken katsus (for some reason this is the archetypal dish whenever an example is needed when talking with them). In November 2024, Compass announced its $500 million acquisition of 4Service, a Norwegian catering and facman business. This follows Dupont Restauration SAS, a French food services company, for $300 million earlier that month. These deals are part of a $1.7 billion investment in European acquisitions over the past year, which included Germany’s Hofmann-Menü, a pre-prepared frozen meal producer, and the UK’s CH&CO, known for catering to prestigious venues like Kew Gardens and the Royal Opera House. Compass is building its European operations to replicate the success achieved in North America, where it holds a dominant market share. This acquisition-driven model has seen Compass focussing on growth sectors, such as creative arts, media, small businesses without kitchen facilities, supported by advanced frozen food technology. Financially, Compass reported a 16.4% increase in operating profit to $3 billion, alongside a 10.6% revenue rise to $42.2 billion reflecting a higher demand for office catering as employees return to the office, as well as increased spending on events and festivals. The company is also developing innovative solutions like unstaffed “open cafés” in office spaces to meet evolving consumer preferences. Compass is reallocating resources from less profitable markets, such as Chile, Mexico, China, Brazil, to strengthen its European footprint. Its focus on sustainability, innovation, and growth ensures it remains at the forefront of the industry. Fascinating. If you want to know more, this Compass fact sheet is excellent: https://lnkd.in/eaqBgnnW World’s largest caterer Compass chases further deals in Europe | https://on.ft.com/3ViDo02 / Financial Times | Eri Sugiura #TheCPGGeek #IBMRetail #IBMConsumer #FoodService #Retail #RethinkRetailTopExpert #NRFRetailVoice #Compass

5

2 Comments

‘𝗦𝘁𝗶𝗹𝗹 𝗯𝗮𝗸𝗲𝗱 𝗶𝗻𝘁𝗼 𝗺𝗮𝗻𝘂𝗮𝗹 𝗔𝗣 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀? - 𝘄𝗵𝘆 𝗮𝘂𝘁𝗼𝗺𝗮𝘁𝗲𝗱 𝗔𝗣 𝗮𝗻𝗱 𝘀𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁 𝗿𝗲𝗰𝗼𝗻𝗰𝗶𝗹𝗶𝗮𝘁𝗶𝗼𝗻 𝗮𝗿𝗲 𝗰𝗿𝘂𝗰𝗶𝗮𝗹 𝗳𝗼𝗿 𝗙𝗼𝗼𝗱 & 𝗕𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝗽𝗿𝗼𝗱𝘂𝗰𝗲𝗿𝘀 𝗶𝗻 𝟮𝟬𝟮𝟰.’ Nathan Ollier, CEO of Open ECX, emphasises that the UK Food & Beverage (F&B) sector, facing workforce shortages, supply chain disruptions, and rising costs, must adopt rigorous spend management and digital systems to thrive. He stresses the importance of efficient invoice processes and timely payments to protect vendor relationships and streamline operations. Implementing automated AP solutions can drive down costs, ensure accuracy, and maintain supply chain integrity. The F&B industry must prioritise these systems in 2024 to stay competitive. Click the link below to learn more and follow Food & Drink Network UK for more industry updates. #FoodAndBeverage #SupplyChain #Automation #SpendManagement #DigitalTransformation

5

1 Comment

As the largest manufacturing sector in the UK, the Food and Beverage sector is facing challenges such as supply chain disruptions, rising costs and workforce shortages, emphasising the importance of adopting digital systems to speed up and streamline invoice and statement reconciliation processes, saving time and resources, and protecting vendor relationships.    Click below to discover more insights from our CEO, Nathan Ollier, on why now is the perfect time to transition your AP processes to a digital platform in our latest article featured in the Food & Drink Network UK.

22

As a critical part of our local economy, support is essential for business.

6

I'm so over being told "as a Director you should / shouldn't.." As a trainee accountant and then latterly as a senior professional, I've often encountered expectations about how I should behave based on my title. However, true leadership is not about fitting into a mould; it's about authenticity and embracing your unique style. Don't be afraid to challenge conventional norms and bring your own perspective to the table. Remember, it's ok to break the traditional expectations; stay true to yourself and pave your own path. Your individuality and creativity are what make you a truly exceptional leader. #Leadership #Authenticity

23

5 Comments

Following the news yesterday of Mars and Kellanova. There is significant change underway within large FMCG companies as they refocus and reshape their strategies to prioritise profitability. It seems inevitable that more large acquisitions and consolidations are on the horizon. Below is a good round up of recent FMCG M&A's and portfolio reshuffles.

7

📈 Consumers in the UK are spending 18% more on FMCG compared to 2021... but there's more to this story! This surge in spending is fueled more by necessity rather than indulgence, as inflation reaches its highest levels in more than 40 years. Since 2021, there's been a continuous decline in actual product purchases, with a staggering 71% of subcategories experiencing unit decline. Wondering how to revive FMCG manufacturing? Read some tips from our Senior Commercial Manager, George Wood below: 👉 https://lnkd.in/giQQDzbb #UKConsumer #inflation #ConsumerBehaviour #ShopperTrends

17

Good to see Food & Drink sector M&A activity is on the increase, although economic pressure means value is still down Premier Foods buying FUEL10K and Mars buying Hotel Chocolat are two of the high profile trade deals recently

9

The latest The Food and Drink Federation industry report highlights some familiar concerns and calls to arms to support the UK's largest manufacturing sector: - product cost inflation still outweighing the rise in selling prices despite easing in general inflation levels, challenging manufacturers margins (and cash) - reducing consumer spend - labour shortages / cost challenges - subdued investment plans and challenges to innovation - regulatory red-tape adding costs and uncertainty, post-Brexit - cost of and lack of available finance (both internal - implying a reduction in reserves and headroom in facilities which resonates with lots of introductions we are seeing in the sector - and external funding) That said, some positive noises coming out of this quarter's survey including a rise in business confidence levels, higher output levels and falling cost increase expectations for the coming year. A third of respondents are in the process of or expect to restructure their operations, hopefully taking a strategic view to their business plans and finances. A good opportunity for a shout out to Ben Collett who leads on our turnaround offering with a focus on performance and working capital improvement, Ben has lots of manufacturing sector credentials both in his advisory and company side roles, so reach out to one of us for a discussion on how he may be able to support you or your clients. RSM UK Ben Horseman Mike Thornton Stuart McCallum CA Tom Morgan Helen Brocklebank Diana Frangou Gareth Harris

23

Mixed landscape for food & drink M&As with deal volumes up but values down- with regional variances. Market conditions & confidence are improving at a gradual rate so expect M&As and PE investment to develop in the back end of 24/25.

2

LinkedInLinkedIn News The Grocer Marketing Week Mark Ritson Dean Murley Julie Murley So many excellent insights from YouGov regarding what influences consumer behaviour in choosing their supermarket(s). 1. Price. 2. Proximity to where I live. 3. Carries Products I need (Low / Middle Income brackets) / Wide variety of products (Household incomes of £100K+ specifically). 4. Loyalty Card Programme. 5. Has high quality products (specifically cited by Household incomes of £00K+ My takeaways from this: 1. If price is such a key factor. The supermarket needs to be as efficient as possible through the entire "value chain". 2) Product & Category Strategy is key. Understanding the everyday needs and the role of innovation (90% of new products fail). 3) Loyalty Card - a recent The Grocer Survey found that "special prices" are actually top priority. Again, margin eroding. 4) Brand Loyalty particularly matters to affluent shoppers. With interest rates hardly coming down, the cost of Grocery shopping is fundamental in household budgets, regardless of income. What influences you in your grocery shopping habits? What other macro factors need to be considered? Look forward to your comments. Me? I'm a Sainsburys / Tesco shopper - driven by price & loyalty offers. Product quality natters too. I love innovation as well.

A huge fall from grace for Quorn Foods ! Losses racing past £60m in 2023 as sales slumped... Back in 2015 when Monde Nissin bought the business for £550m there was a lot of noise about it becoming a $1bn brand. Fast forward to 2023 and group sales are back at 2017 levels of £205m. Following the deal, hundreds of millions of £ were being invested in the Billingham factory, creating hundreds of new jobs and there was hope Quorn would take over the world. Now, staff have been let go, the value of the factory written down, exports dropping, the value of the US business written off to zero and Monde Nissin itself writing down the value of its investment in Marlow Foods (Quorn and Cauldron's parent) by hundreds of millions of £ However, it remains the UK market leader in meat-free by some distance and continues to innovate with new products. Be interesting to see how a turnaround is able to take shape. Read more on the latest financial results in The Grocer

57

24 Comments