Having worked with with a number of food manufacturers, they are continuing to target the foodservice sector. With higher margin, simpler trading terms and strong relationships, I am sure the opportunities will only continue to grow.
Food and drink manufacturers could boost sales by targeting the £56.5bn foodservice market as more people eat outside the home, said Shore Capital’s head of research Clive Black. The UK foodservice market was predicted to grow from £47bn in 2015 to £56.5bn by 2019 according analyst Horizons. Speaking at Eversheds’ 2016 Food and Beverage Conference, Black implied the foodservice sector was sometimes neglected by manufacturers. “If you’re looking at big volume foodservice, such as chains and institutions, that’s going to see much faster volume growth,” said Black “The logistics of foodservice are incredibly efficient, because it’s a much lower margin business compared with retail, but a lot higher cash return.”