A new benchmarking study by Deloitte shows that Canadian food and beverage processors have closed a long-standing margin gap with their U.S. counterparts. Deloitte warns, however, that profitability for the industry is down in both countries and future success will require a fundamental change.
"In the past, processors' success was based around a simpler business model that focused on manufacturing, logistics, customer service and low prices," the report says. "However, future success will be based on consumer insights, brand management, product development and innovation.
"To achieve alignment with the future requirements, companies need to drive change throughout the organization and reduce the focus on things that were historically important but are less important in today's market," says Stephen Brown, national leader, Consumer Products Industry, Deloitte. "To achieve alignment with the future requirements, companies need to drive change throughout the organization and reduce the focus on things that were historically important but are less important in today's market."
