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DECEMBER 2021
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EDITOR AND PUBLISHING DIRECTOR Hakan KESKIN admin@fooddrinkmagazine.com EDITOR Gulcan GOK TUZCU ADVERTISING AND MARKETING
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COORDINATOR Gizem KESKIN gizem@fooddrinkmagazine.com
OH WHAT A FUNNY YEAR IT’S BEEN
AUTHORS Ossiana TEPFENHARD Dave WINTERIDGE Tobias KUMWEDA Linh Quy NGUYEN
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THE GLOBAL FOOD SYSTEM’S CENTER IS THE FOOD INDUSTRY
25 THE QUICK RISE OF MY CULINARY CAREER, FOLLOWED BY THE BURNOUT
14
&
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FOOD AND BEVERAGES COMPANIES PERFORMANCE IN ITALY AGAINST TEST OF COVID-19
43 2021 BEST CHEF AWARD: DAVID MUÑOZ, FRANCO PEPE BEST PIZZA CHEF WINS
48
MARKETING AND COMMERCIALIZATION RESTRICTIONS UNDER BRAND FINANCE QUALITY
COFFEE THE OTHER DRINKING SCENE OF NJ
FOOD DRINK MAGAZINE
DECEMBER 2021
ISSUE #17
GREETINGS TO YOU ALL FOOD LOVERS. As we approach the end of 2021, we are very excited to publish our latest issue of the year. What we are discussing in this issue will be the summary of NOT 2021 but will be 2020 and 2021 assessment of the food and drink industry overall. It was one heck of two years in every aspect. We learnt new way of living, eating, meeting, celebrating, sharing, and above of all surviving. Over the period of two years, the food industry has been greatly affected and suffered by global pandemic of COVID-19. Many restaurants, coffee shops and other small businesses had to close their doors and sadly they furloughed their staff.
EDITOR'S NOTE GULCAN GOK TUZCU
FOOD DRINK MAGAZINE
DECEMBER 2021
ISSUE #17
One thing we did not give up was a good food and accompanying drink in these difficult times. All of the restrictions are easing off as the number of vaccinated people increasing. We all are hoping that all will go back to where it was before soon. Lets talk about something bit more exciting. 5th The Best Chef awards have been announced this year. Last year it was held virtually but this year they are back on the stage. So not all are negative going on in the food industry. Many talented and inspiring chefs presented their skills in Amsterdam. You will find more about them in one of our articles. Well well, what a great time to finish the year. All the magic of holiday season is around us and I am very optimistic that 2022 will bring all the fun and great beginnings to us all. Drinking my mulled wine, eating my mince pie and cheering to you all food lovers. Enjoy reading our December issue. Merry Christmas and happy New Year to you all.
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DAVE WINTERIDGE
Oh What a Funny Year It’s Been
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FOOD DRINK MAGAZINE
DECEMBER 2021
ISSUE #17
As we approach the end of
open. In fact the general
Unfortunately, for us in
another year I thought I
population were subject to
France, the situation did not
would have a look back on
a 6pm curfew, so no
improve for some months.
the year that is about to
gatherings in town squares,
Our restaurant remained
end, not only from a global
no jumping in fountains and
closed to the public until
perspective but also a fairly no firework displays. My personal one. We will all
wife and I had a kitchen
May 17th, at which point we were permitted to serve
remember 2020 as the year disco at home with our
customers seated outside,
that really rocked the World favourite playlist, plenty of
meaning we had been
and in particular the
food and drink and friends
closed for a total of seven
hospitality industry and as
checking in via Zoom.
months! There was a rule
we entered 2021 there was
Much of Europe was in the
suddenly put in place only
enormous uncertainty
same situation and there
allowing a 50% capacity on
about what might happen
were TV pictures of
terraces, which meant we
during the year.
shoppers with trolleys full
would have had a maximum
In France as the bells struck of food and alcohol as they
of 6 customers! Fortunately
midnight and announced
planned a New Year
the government saw the
the start of 2021 there was
indoors!.
flaw in this plan and small
not a single restaurant, bar
terraces were permitted
or catering establishment
maximum capacity. 8
FOOD DRINK MAGAZINE
DECEMBER 2021
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Our saving grace during the closure had been take away service which we had run for 4 days a week but there were many restaurants that had closed completely and furloughed their staff. When it came time to reopen there were reports of fridge engineers and equipment technicians working overtime as restaurants discovered that their equipment really had not enjoyed the break. In the UK pubs and restaurants were given the green light to reopen outdoors only in early April. The UK weather is not renowned for its stability and warmth in the early spring so many many entrepreneurs were creating weather-proof shelters and installing
debate about using the toilet Back in France we were eagerly
heaters wherever possible.
facilities. Fortunately we had awaiting customers being
And for the first time ever
moved on from the rules
allowed inside again, which
people were booking time
about only serving alcohol
came in early June after nearly 8
slots at their local pub to
with a substantial meal -
months of looking at empty
enjoy a pint of beer!
clearly the government had
tables. If a customer wanted to
Customers were not
realised that the virus did not eat inside they were obliged to
allowed inside premises,
distinguish between a well-
service had to be at the
fed person and one who only the contact tracing app set up
table and there was even
drank beer!
leave their contact details or use by the government.
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ISSUE #17
Many were reluctant and
A Covid pass was
compliance are hefty! The
the anticipated return to
introduced meaning that
restaurant neighbouring
eating out was much
anyone wanting to sit at a
mine was fined 9000 Euros!
slower than we had hoped.
bar or restaurant, inside or
However, with the arrival of
outside, would need to
In early July I agreed the
the summer season
prove either double
sale of my restaurant. After
business increased to
vaccination, negative Covid
so much time closed, and
levels that we had last seen
test within the last 72 hours
with the experience gained
in 2019 and all was looking
or recovering from Covid
doing take away, I have
rosy. But then M.Macron
between 14 days and 3
decided to open a food
addressed the nation and
months. This included staff
truck. I have written other
stated that anyone wishing
working in the hospitality
articles about opening a
to use a hospitality venue
industry. Covid passes are
food truck in France and will
after the beginning of
controlled by the
write more once my plans
August would need to
management and staff
get back on track. My other
prove their vaccination
working at the venue with
motivation for selling the
status. Protests and riots
regular police checks and
restaurant is that I feel the
ensued!
the fines for non-
restaurant industry is
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ISSUE #17
countries in Europe are reinstalling closure orders and lockdowns; restaurants and hospitality venues are once again suffering and I fear that we are in for a long winter but I have hope for the industry as we move through 2022, although I think we may be on the rollercoaster for a while yet. The hospitality industry is always changing and adapting to changing environments and I am sure it will come through the current crisis stronger than ever. It will be different changing as a result of
Most establishments are
Covid. We closed the
advertising for Christmas
restaurant on August 31st
and some are even saying
and handed over the keys
they are fully booked. I
at the start of October.
have heard, however, that
Since October I have been
many large companies are
in the UK experiencing the
not booking their usual
hospitality industry first-
corporate function and
hand. It has changed since
some of the larger venues
I was here last but generally
have empty space on
seems to be in good health
certain key dates. There is
- restaurants and pubs are
obviously still some
busy, people are happy to
hesitancy around which will
be mixing, obeying some
take a long time to
restrictions and spending
overcome.
money in an industry that has suffered massive loss.
As I write this article many
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certainly but we need to continue to support our local eateries and be understanding of some of the challenges that they have faced over the past couple of years.
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OVERALL ASSESSMENT OF THE FOOD AND BEVERAGE INDUSTRY IN 2021
THE GLOBAL FOOD SYSTEM’S CENTER IS THE FOOD INDUSTRY Tobias KUMWENDA
FOOD DRINK MAGAZINE
DECEMBER 2021
The tertiarized Agro-industrial model's economic efficiency is frequently achieved at the expense of the environment, resulting in social inequities between countries and between sector actors. Only by coexisting with an alternative model based on proximity and small business networks, which enhances the territories' unique natural and cultural heritage, will sustainability be ensured. The transformation of perishable agricultural raw materials into foodstuffs that can be stored and used for meal preparation (what we now call the "agri-food industry") has been a long-standing human activity. It was most likely developed around 11,000 years ago, at the same time as agriculture and sedentarization, with the production of grain flour and semolina, cheeses and fermented beverages, as well as the drying and smoking of meat and fish.
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The large food corporations (Nestlé in Switzerland, Unilever in the Netherlands and the United Kingdom, Liebig in Germany, and so on) emerge at the end of the nineteenth century or the beginning of the twentieth century. Market structures, on the other hand, did not change significantly until World War II [Rastoin, 2000].
Agricultural Production This artisanal and family-run business has long
Today, the IAA is at the centre of a
been a part of agricultural production. The food
massive economic complex (the
industry (IAA) as we know it today did not emerge
"food system") whose goal is to feed
until the late nineteenth century, during the
people, primarily through market
industrial revolution.
reports [Rastoin and Ghersi, 2010]. The role of IAA in the many sectors
It began with technical innovation, as did other
that make up the food system differs by country.
industries (textiles, metallurgy): the beet sugar
However, we see a global trend
extraction technique [Chaptal and Delessert, 1811],
towards a tertiarized agro-industrial
the thermal sterilization method in cannery
paradigm, one in which the IAA
[Appert, 1802], and chocolate manufacture
plays a strategic key role, which we
[Meunier, 1824], to name a few. With the move from handicraft to industrial factories, this plethora of innovations is accompanied by new kinds of
will describe first. On this foundation, we will provide globalization and financialization tendencies for this model, as well as two long-term
production organization.
potential scenarios for the IAA.
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Agrifood Industry Heterogeneities and Convergence In the vast majority of countries, the IAA ranks first among the huge subgroup of manufacturing industries, with a weight ranging from 10% to 30%. Its importance is indicated both by technological and economic proximity to agriculture (value of basic raw materials) and by a function of essential demand: food, with about 4,000 billion dollars in production and more than 25 million employees in 2009. However, in terms of structure and geographic region, this industry is extremely diverse. The IAA is made up of numerous sectors (for example, cereals, oilseeds, and animal products processing) with distinct technological, economic, and managerial characteristics. Furthermore, due to agro-climatic, commercial, and economic constraints, IAA characteristics differ from country to country. In 2009, high-income countries (PHR), which accounted for 16 per cent of the global population, produced 64 per cent of the
The IAA's dynamics are "flat" in developed countries, "sustained" in emerging countries, and "rapid" in developing countries, confirming the basic and demographic character of food markets: in the process of economic growth, the IAA represents a start-up sector whose advantage is to mobilize little capital and a lot of work, and to support the growth of other
world's IAA (72 per cent of global GDP), while
consumer goods through the relative
developing countries (DCs) accounted for 32 per
fall in food production costs.
cent of the population and 6 per cent of output.
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Despite this, most governments fail to invest in this area. The phrase still holds in PHRs, because when existing needs are met and demand stagnates (a "mature" market), the emergence of new requirements (environment, health, etc.) generates potential economic growth pathways. for the IAA. The food industry's heterogeneity remains strong, but it is disintegrating under the strain of three
ISSUE #17
Economies of Scale Are Driving Rapid Concentration Ten countries account for 85 per cent
major and interrelated forces: concentration,
of global IAA production and 70 per
globalization, and financialization, as it is in other
cent of IAA workers. In the early 2000s,
capital-intensive industries.
the total dominance of the great rich countries (the United States, Germany, France, and Japan) was replaced by a sharing of global leadership with growing countries such as China, Russia, Brazil, and India. Concentration must be valued at the corporate level as well. According to our estimations [Rastoin, 2008], oligopoly is reduced to a handful of firms holding nearly 3/4 of the market in the most sophisticated sectors in terms of technology and marketing, such as ultra-fresh dairy goods, soft drinks, and snack products. The average profile of the IAA's top 10 corporations demonstrates their size and, as a result, economic power: approximately 47 billion dollars in turnover (turnover), 119,000 employees, and a net income of "about 3.7 billion dollars in 2007.
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Danone, the first French firm, is ranked 12th, with a turnover of 17 billion dollars (5 times less than Nestlé) and a profit of 1.9 billion dollars (6 times less than Nestlé). It's worth noting that US hegemony is still in place: 9 of the top 15 companies are American. The 8,000 foreign subsidiaries of the world's top 100
ISSUE #17
Outstanding Economic and Technological Results
agrifood companies are spread across emerging and developing markets, increasing agri-food capital concentration in PHRs. More than 600,000 companies populate the "fringes" of this oligopoly around the world, mostly small and medium-sized enterprises (SMEs) and very small enterprises (TPE), which densely "mesh" the rural and peri-urban space with "territorialized"
TThe pursuit of competition leads to
products that often favour organoleptic quality and
concentration. The food industry
local cultures.[Noronha Vaz, Nijkamp, and Rastoin, 2008]. VSEs (0 to 9 employees) and SMEs (10 to 249 employees) made up 86 per cent of the 360,000 enterprises in the IAA in 2009, accounting for 63 per cent of employment and 48 per cent of turnover [CIAA, 2011].
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market in industrialized food systems is dominated by large-scale distribution (GD), which is extremely consolidated (in Western Europe, households there make more than 80 per cent of their food purchases).
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Consumer pricing, and hence the net prices paid to agro-food suppliers, are the main sources of competition amongst GD enterprises. As a result, the IAA is obsessed with productivity increases, urging firms to expand in size to lower fixed unit costs (economies of scale, substitution of labour by mechanization and robotization). Technological advancements have made it possible to reduce product losses while also improving sanitary quality control. There are two drawbacks to this Saint-Simonian feat: the significant loss of jobs (four times the number of industrial locations). Small businesses compensate for severe employment losses at the level of major firms with more than 500 employees by creating new positions, resulting in workforce stability in the IAA. and harmful consequences on the environment and food safety). When marketing channels change, such as with the entrance of big-box retail chains, the process of concentration may be seen everywhere in agriculture and the food business [Reardon and Minten, 2011]. According to our calculations,
Forced GD to establish highly tight
supermarkets were visited by 55 per cent of the
quality surveillance and traceability
world's population in 2010, fitting within an agro-
processes at the IAA level. Today, the
industrial food system.
food chain is governed by standards
Another reason for the concentration in the food
(IFS, BRC, GlobalGap, and so forth) that
business is the need for food safety (non-toxicity of
were developed in part by GD. Food
food). The mid-to-late 1990s BSE (mad cow) crisis, as
firms that want to be mentioned by
well as subsequent ones (salmonellosis, etc. ).
GD must use their pricey application.
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Finally, due to the leverage effect enabled by size,
Because of the market economy's
concentration ensures the funding of intangible
historical history, the IAA now spends
investments (innovation and communication) that
more on services (mostly logistics and
allow for market share gains. These are significant
marketing) than on agricultural raw
investments. R&D accounted for roughly 1.5 per
commodities in PHR. In just over half a
cent of the sales of large agro-food enterprises in the OECD in 2008, but advertising accounts for between 5 and 15% of the final price, depending on the product. The consequences of size are at work here as well, and the huge enterprises benefit.
century, we've gone from a "40 / A-40 / I-20 / S Percentage shares of agricultural materials (A), industrial processing (I), and services (S) in a product food." to "20 / A-30 / I-50 / S" in European countries: the IAA has thus become a tertiary industry [Nefussi, 2004], an odd paradox! In reality, the pricing structure displays both the growth of consumer behaviour and a "sharing" of the economic value of the commodity, which reflects the market power of the many participants in the sectors. An industry that is subject to globalization and financialization's iron laws. Despite its various nuances relating to the exploitation of living materials, the IAA tends to become conventional, morphing into a transnational consumer goods industry driven by financial markets, with no guarantee of food security.
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Agrifood Markets Are In Developing Becoming Increasingly Countries, Globalized There Is a Food Globalization is defined by an increase in all types of Problem international exchanges, a new geopolitics of these exchanges, and in-depth managerial changes that stimulate new governance models. Because of its ability to store and transport perishable products (agricultural raw materials), the IAA has backed this movement considerably more easily than
The situation in developing countries, particularly LDCs, is drastically different. Indeed, we have seen the formation of a dual, if not schizophrenic, the food system in most
agriculture. The most evident sign of globalization is a steady, if irregular, increase in international trade. In the last
countries around the world over time. On the one hand, there is a traditional subset that concerns the majority of
30 years, global agriculture and food exports have
rural areas and is focused on the
expanded by a ratio of 4.4, reaching about 1 trillion
middle and wealthy classes of large
dollars in 2009. Agricultural commodities (basic raw
urban metropolises and exportation,
materials) are, however, expanding at a far slower
which reproduces the agro-industrial
rate than processed IAA goods.
scheme.
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On the other hand, there is a traditional subset that concerns the majority of rural areas and is focused on the middle and wealthy classes of large urban metropolises and exportation, which reproduces the agro-industrial scheme. In these nations, the agricultural population is big, relative food prices are high (they dominate most of the household income), and women dedicate a significant amount of time to meal preparation due to the low degree of meal preparation.
Agrifood Industries That Are Diametrically Opposed
Apart from a few rare commodities, food goods' integration into international trade remains poor. The objective for these countries is clearly to escape poverty [Sen, 1981] through upgrading agriculture and diversifying their enterprises. As a result, combining agricultural and food policies is critical [Raoult-Wack and Bricas, 2002]. These countries must avoid replicating a model that has already reached its limits and includes sustainable development goals into their policies.
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The relevance of IAA production is related to a country's purchasing power and investment capacity, not to the size of the supplied population. It is concentrated primarily in wealthy countries.
e s i R k c ui linary Q The y Cu r, of MCaree by d e t w u o l o l Fo Burn the Alecca HUNT
FOOD DRINK MAGAZINE
DECEMBER 2021
ISSUE #17
Most kids get asked what
While in attendance, I was to get an internship in a
they want to be when they
kitchen and learn first-hand what it was like to cook
grow up, and almost every
with the best of them. I landed an unpaid position at
time they are asked, the
a locally owned gastropub that infused Asian and
answer will change. For me, I
American flavors and techniques into a delightfully
knew at a young age that I was going to grow up and be a Chef. I always thought I would go to culinary school, make it big by opening a restaurant, or maybe even getting my own cooking show on The Food Network,
playful and delicious product. So on top of my 18 hour course work plus a 40 hour work week at a chain restaurant, I added another 20 hours at the internship—and it was my favorite 20 hours of the week. I feel in love with the culture and pace of the kitchen. I loved the instant camaraderie and feeling of team pride after a particularly rough dinner shift (and mimicked prayers that tomorrow’s brunch shift goes a little easier on us, please and thanks). I loved
but I knew that my career
being the only female chef in the male dominated
would involve the culinary
kitchen—and let’s be honest, I was kicking ass at it,
industry to one extent or the
too. My hard work paid off in almost no time at all
other. I aimed for the stars
and soon I found myself working my first real
from the start and wouldn’t
cooking job in a restaurant where I could gain
stop I was amongst them in
experience and hone in on my skills, all while finally
orbit. I spent my younger
being paid for it!
years working towards doing just that, even obtaining a business degree in order to launch my own venture one day, and finally took the first giant leap and signed up for cooking school.
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I was asked to stay with the
Sous Chef position at the pub, while I eagerly
pub and offered a position
accepted. After all, this is what I wanted to do my
as line cook before the
whole life and it was basically handed to me on a
internship ended, and soon
silver platter. I would be a fool to pass it up, right? For
found myself in the thick of
the next 4 years, I strived and pushed to make it all
it all. I worked any shift I was asked to, made suggestions for many improvements, and gave my all to making sure not only, but the establishment itself succeeded. After only 6 months working for my
work and prove to myself that this life is exactly what I dreamed it would be. Then COVID-19 struck the world and life stood still for a little while, giving me too much time to think about the ever declining predicament I was in. Fortunately, I was never a worker who lost their job due to the coronavirus—food service workers were deemed essential in the state I live, so my restaurant
Chef, and finishing up my
trudged on, my Chef and I constantly watching the
last semester of culinary
news and waiting for the next gut-wrenching, and
school, I was offered the
possibly job costing update. And though the pub stayed open, everything still changed. Hours were cut, customers were few, and the fear of waking up one day and everything I worked so tirelessly for being gone. While we were able to stay open, local restaurants all around shuttered and the constant fear of being next placed a mountain of stress on not only myself, but everyone in the food service industry. A few months into the pandemic, I did what I never thought I would do and I quit my job as Sous Chef.
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DECEMBER 2021
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Immediately, the weight was Too many times, people don’t recognize their lifted. Not just the weight
burnout and continue to overwork themselves,
from leading a restaurant
thinking “this must just be life.” For some, working
through a pandemic, but
those long hours is all you may know about working
the weight of working just to
the food industry. It’s a common trope that chefs
impress and not for my own sense of fulfillment. Somewhere along the way, the light was lost. The joy turned to dread and the group gatherings turned into crew meetings that lasted too long. As the
work hard and play hard day in and day out, often at the price of their social life, sleep pattern, and sometimes even resulting in missing out on important other things. If this becomes the case, I recommend stepping back and deciding if the situation is worth the stressors. If it isn’t, it’s time to leave the situation. Luckily the food industry is also a forgiving one, and taking time to yourself to rekindle your love for the art doesn’t mean you’ll fall behind.
Coronavirus continued on
Keeping up with the food trends is easy and fun to
leaving nothing but chaos
do from home, and when one isn’t doing something
and confusion in it’s wake, I
for money, they often find themselves enjoying the
saw firsthand how fickle the
task more. Once the lure of the kitchen doesn’t
food industry can be, and I
seem so shiny, it’s best to take a step back before
realized that while the
losing your love for cooking all together.
hustle and bustle of a kitchen is something I loved, the stress of running the kitchen was not something I was ready to give up my next 70-odd years of life for.
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ISSUE #17
OVERALL ASSESSMENT OF THE FOOD AND BEVERAGE INDUSTRY IN 2021
FOOD AND BEVERAGES COMPANIES PERFORMANCE IN ITALY AGAINST TEST OF COVID-19 Tobias KUMWENDA
It is now clear that the current pandemic of novel Covid-19 is destined to have far more severe consequences than the financial crisis of autumn 2008. Indeed, on the table, on fundamental fronts such as GDP, exports, and industrial production, data that are worse than those that were available about ten years ago are emerging.
What kind of economic future does the Italian food business have as it deals with the emergency brought on by the Coronavirus? The prospects are promising, according to the current ISMEA Report for Federalimentare on the financial statements of 6400 Made in Italy food enterprises. The current issue is not just a financial one. As a result, the rebound and escape from it may be quicker, at least from a commercial and production standpoint. In the last three years, the food sector has established itself as a highly dynamic sector, both in terms of the broader economy and in terms of the manufacturing sector as a whole. 30
FOOD DRINK MAGAZINE
DECEMBER 2021
previous year, compared
The Analysis of Industrial Production
to -0.5% for
This backs up the Agri-food
In 2019, value-added increased by 2% over the
manufacturing and +0.3% sector's reputation as a
ISSUE #17
Even the Covid-19 emergency, which was felt by the food industry, which experienced a downturn during the crisis, did not
for GDP. Although
stable industry. Although
prevent Food & Beverage
employment has
the recession in global
production levels in the first
commerce has had a
three months of the year
detrimental impact on both
from remaining below
Italian and non-Italian
those of the same period in
industry production levels,
2019, with an increase of
the index of food industry
0.8 per cent compared to
production has consistently
an 11.7 per cent decline in
at lower rates than the
outperformed
the manufacturing total.
national economy as a
manufacturing.
The distribution of value
whole (+ 3.9 per cent).
In recent years, except for
along the supply chain is
2017. Overall, the positive
undoubtedly one of the
However, as a partial
performance of the food
most important
consolation, the
business in 2019 was
impediments and
combination of these
primarily due to
difficulties plaguing the
international demand and
Agri-food sector. The
the performance of select
ISMEA value chain
Made in Italy items.
elaboration reveals a value
increased in the primary sector (+ 3.3 per cent) and the food industry (+ 2.4 per cent) over the last five years, it has done so
factors has resulted in a notably bright trend in the sector's labour productivity (+ 14.2%),
creation system The same American tariffs,
characterized by structural
which began in October
reliance on foreign
place, behind the
2019 and increased by 25%
countries for various
chemical industry, in
on a cap of 500 million
production factors, an
terms of rising in labour
euros of Italian food exports
excessive number of
productivity between
divided into liqueurs and
operators along the supply
2014 and 2019.
aperitifs, dairy goods, and
chain, asymmetries due to
prepared meats, have
different bargaining power
failed to stifle its progress.
of actors involved, and a
placing food in second
general lack of competitiveness. 31
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This statistic excludes the effects of other sources of
upward trend. In fact,
export flows. It has
uncertainty related to the
numerous outlets have
severely harmed our ability
economic downturn that
had double-digit
to expand our position on
could affect household
global markets, halting a
demand, as well as the
significant qualitative jump
government's support
that the national food
programs. On the other hand,
industry had been making
by reducing the negative
despite numerous
impact on the food sector and
difficulties.
agriculture.
(+17%), Belgium (+12%),
According to ISMEA
The good trend in domestic
Austria (+12%), the Czech
estimates, the Covid-19
food consumption in 2020 can
Republic (+16%), and
problem will have a
counteract, if only somewhat,
Turkey (+23%).
domestic impact on the
the decline in consumption
These figures are highly
Agri-food sector by
outside the home. In any
encouraging, yet they
reducing non-domestic
scenario, the total result will
only serve to highlight
consumption by roughly
be differentiated for different
39%, resulting in a loss of
goods and different Agri-food
around 34 billion euros.
chain components.
quarterly growth: Germany (+12%), France (+12%), the United States (+12.5%), Russia (+25%), Spain (+17%), Poland
the severity of the pandemic's impact on.
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ISSUE #17
component (+ 50 per
the food industry (-45%),
consumption declined by
cent) outperforms the EU
distribution (-44%), and
over 16 billion euros in real
average, whereas the
catering (-30%) are
terms between 2007 and
Italian average figure in
significantly lower than the
2019.
the food industry (-45 per
European average.
cent), distribution (-44 per cent), and catering (-30 per cent) are significantly lower than the European average.
In the food and beverage
However, in the home
industry, 17 sectors
market, it is extra-domestic
produce 88 per cent of the
demand that has shown a
turnover and 83 per cent of
particularly favourable trend,
the added value,
with an increase of nearly 5
accounting for 46 per cent
billion euros over the
In terms of output, 17
of all businesses and 67 per decade, accounting for 34
sectors create 88 per
cent of all employees.
per cent of the total of over
cent of the turnover and
250 billion euros spent on
83 per cent of the added
food and drink by Italians.
value in the food and
These are dynamics that,
beverage industry,
while indicating some positive aspects, would not
accounting for 46 per cent of all enterprises and 67 per cent of all employees. When comparing the average added value
have been sufficient to
The Potential to Develop on Overseas Markets
support a sector that, on the other hand, has found fuel in international markets, allowing it to consolidate its position as a major sector in
generated by each
This has substantially
the national economy. Italy's
company in the various
contributed to the Agri-
Agri-food exports have
phases of the supply
food sector's strong
steadily increased over the
chain in Italy to the EU
performance in recent
last five years, increasing by
average, it is clear that
years. Indeed, for more
30% in 2019 compared to
only the agricultural
than a decade, the national
2014 and reaching 44.6 billion
component (+ 50%)
demand for food and drink
euros.
has remained unchanged.
The statistics for the first
Despite a recovery in the
quarter of 2020 in the food
last five years, household
sector likewise confirms a
outperforms the EU average, whereas the Italian average figure in
steady and consistent 33
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ISSUE #17
Agricultural sector, which
ago, reaffirms how
chain are still a The
is further away from final
relationships in the supply
investigation of the
demand, suffers from
chain are still a critical issue
complete supply chain, on
system inefficiencies, as
to be tackled with
the other hand, reveals
determination; the fact is
structural limitations that
that the empirical
affect each of its
observation seems to
components, albeit to
indicate that this
varying degrees, beginning
prevalence of the further
with an excessive number
downstream phase of the
of micro and small firms.
the EU CAP has now widely recognized, the food industry's value chain has been elaborated in recent
years, revealing structural supply chain has embarked difficulties and weakness. on a downsizing process in
When the average added
Contractual relationships
value generated for each
the last few years.
company in the various
in the supply chain are influenced by market
The fact is that the latest
volatility and competition. data, even if referring to a Latest data, even if referring to a few years
phases of the supply chain in Italy is compared to the
few years ago, reaffirm how
EU average, it is clear that
relationships in the supply
only the agricultural
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FOOD DRINK MAGAZINE
Domestic Consumption Overall, a probable growth in domestic consumption of around
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ISSUE #17
Agri-Food Sector
The anticipated modifications (-39 per cent outside the home; -4 per
The facts, therefore, confirm
cent fresh and defrosted
the positive data of an Agri-
fish products; + 6 per cent
food sector that has
other domestic
established itself as one of
5.6 per cent is projected consumables) could have a for the year 2020, using cumulative impact on total
the most robust and resilient
the value of 2019
domestic and non-
in the face of financial crises,
consumption as a
domestic agri-food
while also outlining a scenario
reference (165 billion
expenditure of around -10
with hazy borders following
euros for consumption of per cent by 2020, equaling
sectors in recent years, even
an entirely new, non-financial
food and drink items,
a value of around 24 billion
crisis, the effects of which will
excluding cigarettes).
euros.
unfold along lines that are still largely unpredictable for a
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FOOD DRINK MAGAZINE
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ISSUE #17
time horizon that could
This is true, for example, of
In terms of location, 67 per
range from a few months
wineries or social dairies, as
cent of the companies in the
to several years.
well as first-time fruit and
sample are based in the
vegetable processing
Center-North, while the
businesses. Furthermore,
remaining 33 per cent are
only active companies that
based in the Southern
had filed financial accounts
regions. The enterprises
for the entire period of 2014
studied have distinct
to 2018 were examined.
production specialities, which
While this removes newer
reflect their geographical
enterprises risks
businesses, it does ensure
location.
becoming a sterile
that the sample is fairly
In the Center-North, the dairy
exercise unless it is
stable and that data can be
industry accounts for a
oriented toward a
compared across time.
quarter of total turnover, wine
determination of the
The enterprises studied
accounts for just under 10%,
ability to confront future
had a total turnover of
and red meats and meat
uncertainty of one of the
slightly over 93.4 billion
processing accounts for
euros and a value-added of
about 16% of total turnover.
16.3 billion euros. The total
Fruit and vegetable
number of employees is
specialities, which account
estimated to be around
for 25% of the southern
231.4 thousand. As a result,
sample, dairy (13.7%), pasta
the sample represents a
(11.6%), and wine (11.6%) are
examined, including those
significant and
the most important
that, according to the
representative portion of
specializations in terms of
ATECO code, is within the
the Italian Agri-food
turnover (11,2 per cent).
field of agriculture but are
industry as a whole.
The average size of an
not significantly different
Dairy, which accounts for
enterprise is 36.2 employees,
from others in terms of
15% of firms in numerical
while over 42 per cent of the
economic size, structure,
terms and up to 23.3 per
sample is made up of micro-
cent in terms of turnover,
enterprises with fewer than 9
and wine, which accounts
employees, and another 39
for 21.7 per cent of
per cent is made up of
enterprises and 10% of
medium-small businesses (
turnover.
10-50 employees).
In this environment, examining today's performance and economic-financial structure of food
country's most significant sectors. In this spirit, the financial accounts of 6,400 food enterprises were
and production methods. The realities of the industry.
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DECEMBER 2021
'In total, 64.2 thousand
In the period under
people work in micro and
consideration, the added
small businesses,
value increased
ISSUE #17
accounting for 27.8% of the significantly (+ 15.9%), total workforce. The dairy industry is defined by its average size of more than 50 employees. The analysis of financial
however, this is a tendency that has gradually faded, eventually cancelling out in the last year. Unlike turnover, the added value of companies in the South
George’s Blood Was Laced With Dairy (Milk in His Veins?)
statements of companies
increased faster than that
Prior to beginning his job as
supports the good trend
of companies in the Center-
a dairy inspector. Craig's
of the Italian Agri-food
North over the years
grandfather, Craig's father,
sector during the last five
studied.
worked as a cheesemaker.
years, with turnover rising from 81.2 billion euros to
Also, the cheesemaker's
current prices.
Gastronomy and ready meals
Although there was a
Gastronomy and ready
succession of overtaking
meals (+ 32%), wines (+
and counter-overtaking
29.8%), and vegetable oils
between the two districts
other than olive oil (+27.5%)
in the various years
are among the fastest-
considered, the territorial
growing industries. Coffee
93.4 billion euros (+ 15%) at
comparison shows a differentiated growth in turnover favouring companies in the South (+
and tea, red meats, seafood, dairy products, and pasta all experienced higher-than-average growth rates. An intriguing
17.1 per cent) compared to blend of tradition and those in the Center-North innovation that is likely to (+ 14.7 per cent) over the
remain the national sector's
five years.
strong suit.
37
father was a Wisconsin farmer (George's grandfather, Craig's... oh, never mind). What kind of farmer, Culver 's history doesn't specify, but we're going to assume that a cow was involved because, you know, Wisconsin. Also it just makes for a more moooving story.
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Olive oil (+ 11.4 per cent),
A synthetic indicator was
corresponded to three
animal goods (+ 12.3 per
calculated based on the
macro-groups with different
cent), fruit and vegetables
indicators of profitability
levels of performance and
(ROI and ROE), solvency
problems.
(+ 13.7 per cent), and chocolate (+ 5%) all saw
(liquidity index and availability index), and
The methodology was
financial solidity (degree of
applied to the average data
independence from third
of the examined period
parties and global
because company
There were 1,849. firms
coverage index of fixed
performance can vary
that showed indicators of
assets), allowing the
significantly from one year to
fragility and reported
companies in the sample to
the next in terms of
losses in turnover during
be classified into eight
profitability, but the
general growth.
groups, each of which
important characteristics of
modest but still considerable improvements in turnover.
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DECEMBER 2021
capital strength and liquidity are more constant over time. The evidence that has surfaced is reassuring.
Conclusion To sum up, the fact that there are no significant differences in estimates of the degree of resistance to crises at the territorial level is encouraging; indeed, it should be noted that the area of the most robust companies in the South is slightly larger, at 45 per cent of companies compared to 42 per cent in the Center-North.
39
ISSUE #17
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FOOD DRINK MAGAZINE
DECEMBER 2021
2021 Best Chef Award: David Muñoz, Franco Pepe best pizza chef wins 41
ISSUE #17
TOBIAS KUMWENDA
FOOD DRINK MAGAZINE
DECEMBER 2021
ISSUE #17
The Best Chef Awards 2021, from the coveted Top 100 to the countless special awards, are the ones that fascinate us the most. Franco Pepe is the finest pizza cook, according to David Muñoz.
The names of the winners have been revealed. Let's take a look at both the Top 100 list, which shows David Muñoz at the top, and the other special honours at the Best Chef Awards 2021.
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But what is The Best Chef? The Best Chef positions itself as a bridge between the past, present, and future, providing a platform for the best of the global culinary scene. For veterans of the scene, current protagonists,
The full award
and the most fascinating viewpoints of the next
ceremony was
generation, there is room to exchange
broadcast live in
information and experiences.
Amsterdam, with the
Above all, The Best Chef wishes to honour those
theme "Back to LIVE"
who have achieved success in the culinary
for the 2021 edition.
industry as a result of their expertise,
After the virtual edition
enthusiasm, and drive-by awarding them the Top 100 and other unique prizes.
of 2020, it's "back to reality."
The criteria awarded by The Best Chef are "creativity, intelligence, passion, innovation and sustainability, the ability to elevate food through the use of science or technology, and still being able to obtain a positive social impact through the own kitchen".
Some of the most famous figures in the culinary industry from 29 nations across the world were among the participants this year. Spain, which had 15 chefs competing, was given honourable mention.
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THE BEST CHEF: THE TOP100
Top100 first place was conquered by David Muñoz, chef of the restaurant DiverXo in Madrid. The Spaniard is not at all a stranger to the podium: only a couple of years ago, in Barcelona 2019, he managed to take third place home. "Getting a first place at The Best Chef Awards is the greatest joy," said Muñoz. “An incredible pride and responsibility. Cool!" "For me, The Best Chef Award
Second place for Björn Frantzén of the Frantzén in Stockholm, which also wins the title of "The Best Chef Voted by Chefs powered by Difference Coffee".
is one of the most prestigious publications in the world
This is the second consecutive silver medal for the
today, and an award like this is
Swedish chef, who also wins the special prize Best
a dream come true, which recognizes many years of creativity, dedication, passion and hard work" continued the Madrid chef. "The last few years in Xo's world
Chef Voted by Chef, where he was voted the best professional by his own colleagues. The third step of the podium, finally, for another Spaniard: it is Andoni Luis Aduriz of Mugaritz by San Sebastián, which drastically improves the 45th place of the last edition.
have been very intense and
Among the Italians in the race, however, the results
decidedly strong, but my team
obtained by Massimo Bottura (sixteenth), Mauro
and I are sure that this is only
Uliassi (twentieth) ed Enrico Crippa (twenty-sixth),
the beginning and that the
who managed to enter the top thirty positions.
best is yet to come. There are no limits in sight. "
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There are two special prizes won by local chefs: these are The Best Chef Legend and The Best Chef Pizza, respectively won by Alfonso Iaccarino e Franco Pepe. The first is a category award that celebrates the best chef who is no longer active in the kitchen as a chef but who still has a crucial impact on the world of gastronomy and was assigned to Don Alfonso for his very personal crusade in enhancing and making known southern Italian cuisine in the rest of the world.
Franco Pepe managed to grab the award for best pizza chef, who underlines his work in order to make the pizza product international and recognizable without ever trivializing it. “Receiving this award is extremely important to me," said Pepe. “I am so proud that my work is recognized internationally together with the best chefs in the world. During my career I have always sought dialogue and a point of connection with haute cuisine, drawing lessons that have allowed me to give vent to my creativity and innovation. I am really grateful to the organizers of The Best Chef Awards for this award and will continue to work to ensure that pizza reaches the highest levels in the culinary world ".
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Let's take a look also at all the other special prizes: Fatmata Binta, originally from Sierra Leone, states how Rising Star of the gastronomic scene by winning the prize of the same name. "Modern nomadic chef", as she herself has defined herself, is an ambassador for phonio, ancient gluten-free wheat traditionally cultivated and consumed in West Africa. The Fol-LOVERS Award, an award that enhances the opinion of the public and of the followers of The Best Chef on social media, is instead won by the Brazilian chef Buffara Manoella. The prize won by is very sweet Maša Salopek, which celebrates victory as the best pastry chef; while the Chinese chef Vicky Lau is rewarded for its millimetre aesthetic precision with Food Art Award. The coveted prize. Gourmet, entrusted to the best restaurant in the host city, is instead conquered by Rijks and from his crew: Joris Bijdendijk (executive chef), Ivan Beusink (chef de cuisine) e Yascha Osterberg (chef de cuisine). The Portuguese chef Henrique Sá Pessoa stands out on new candidates and gets the highest score by securing the New Entry Award. And last but not least, it Science Award - a tribute to the chef who stands out for research, experimentation, techniques and transformations - was won by the Spanish chef Joan Roca, a veteran of the application of new techniques which then became commonplace.
46
ISSUE #17
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Marketing and Commercialization Restrictions Under Brand Finance Quality According to Brand Finance, imposing global marketing limitations on the alcohol, candy, salty food, and sugary beverage industries could cost businesses $ 521 billion.
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PepsiCo stands to lose the most at the corporate level, with a potential loss of nearly US $ 62 billion, but rival Coca-Cola stands to lose the most at the brand level, with a potential loss of nearly US $ 43 billion. Major alcoholic beverage firms are at risk of
ISSUE #16
BRAND FINANCE MARKETING RESTRICTIONS 2021 REPORT
losing all of their revenue. In terms of absolute losses, AB InBev would suffer the most, with approximately $ 40 billion on the line. Cruzcampo, a Spanish company, would lose 507 million dollars. Brand Finance conducted a survey of more than 6,000 customers in 12 countries around the
On June 29, 2021, in Madrid.- Following the implementation of marketing limits for tobacco products and persistent calls to extend the legislation to other
world, including more than 500 in Spain, to gather their opinions on brands and marketing limits. The results suggest that 70% to 90% of consumers are aware of the positive impact of brands.
industries, Brand Finance has broadened the analysis by evaluating the impact of such policies on tobacco brands. Food and beverages Based on an
Less than 10% of consumers believe that
analysis conducted in 2017 and 2019,
television advertising, billboards, in-store demonstrations, or distinctive packaging should be prohibited. Consensus that marketing restrictions exacerbate the problem of illegal trade: between 80% and 90% of consumers
the latest Brand Finance Marketing Restrictions 2021 report estimates a potential loss for companies in the sector of more than 500 billion dollars and detects consumer attitudes toward
acknowledge the importance of brands in
brands and restrictions through a global
promoting legal sales channels.
survey of more than 6,000 consumers. "In the current extraordinary market environment, with loans to enterprises, ERTE, and a huge fall in consumption, there should be incentives to assist boost the Spanish economy," says Teresa de Lemus, Managing Director of Brand Finance Spain.
49
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OVER 500 BILLION DOLLARS ARE IN JEOPARDY Brand Finance's most recent analysis looked at the potential harm that marketing limitations could have on alcohol, confectionery, salty snacks, and sugary drinks companies around the world. The calculation is based on brand contribution or the potential impact on business value owing to a reduction in the added value that brands provide. The paper examines the influence of nine of the world's major food and beverage firms, including AB InBev, The Coca-Cola Company, Diageo, Heineken, Mondelez International, Nestlé, PepsiCo, Pernod Ricard, and Treasury Wine Estates, on the sector as a whole. If marketing restrictions are imposed, these nine companies alone could lose a total of $ 267 billion in market value. In other words, these businesses could lose nearly a quarter of their business value and more than half of their brand contribution on average. If we extrapolate this to all the globally endangered industries, brands of alcohol, confectionery, salty snacks, and
NOVEMBER 2021
ISSUE #16
valuable and strongest in their categories and markets, become a haven for wealth during times of crisis. When the global economy is in danger, it looks to well-managed, inventive, and recognized brands. Severe marketing limitations are disastrous for all stakeholders, including consumers, society, investors, and governments. If worldwide marketing limitations are implemented, there will be an implicit loss in the food and beverage businesses.
LOSSES AT THE BEVERAGE BEHEMOTHS Because branding is so important in the soft drink industry, simple packaging or other restrictions on advertising would be disastrous. With a possible loss of about 62 billion dollars, PepsiCo is the brand that would suffer the most in absolute terms among all the corporations evaluated. With $ 23 billion at stake. PepsiCo's main brand, Pepsi, is expected to suffer the most in its portfolio. However, CocaCola, The Coca-Cola Company's biggest brand, would lose $ 43 billion, far more than bitter rival Pepsi and any other brand studied. It accounts for the majority of the company's potential loss, which is estimated to be $ 57 billion.
sugary drinks might lose a whopping $ 521 billion. "Brands are a fundamental component of how the world works," said David Haigh, President and CEO of Brand Finance. Brands, particularly the most
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BRAND OPINIONS AND MARKETING CONSTRAINTS IN A GLOBAL STUDY
THE EXPOSURE OF MAJOR ALCOHOLIC BEVERAGE CORPORATIONS IS 100 PERCENT
Because of the risks that marketing limits pose to companies, Brand Finance polled more than 6,000 people in 12 countries around the world, including more than 500 people in Spain, to get their thoughts on brands and marketing restrictions. In addition, 13 Marketing Directors in charge of brand marketing in key companies in the research sectors were
Because their portfolios are wholly dependent on items that would be affected by the
interviewed on the role of brands in economic and social well-being, as well as their concerns about marketing
legislation, spirits behemoths AB InBev, Heineken, Diageo, Pernod Ricard, and Treasury Wine Estates might risk a 100 per cent revenue loss if marketing limitations were placed on their industry on a worldwide scale. Cruzcampo is expected to lose $ 507 million as a Heineken portfolio brand.When compared to the other companies studied, Treasury Wine Estates' corporate value would suffer the greatest, with a possible loss of up to 38.9%. Similarly, AB InBev would lose the most money of all the alcohol companies evaluated, with over $ 40 billion on the line.
51
restrictions.
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NOVEMBER 2021
ISSUE #16
The general public, both in their
THE FOLLOWING ASPECTS ARE AFFECTED: SPAIN AT A GLOBAL LEVEL
everyday lives and in societies and
Product safety and production standards are
economies in general, recognizes the
being raised. 80% 80% 80% 80% 80% 80% 80%
good impact of brands globally.This
80% 80%. Sourcing and supply chain practices
pattern is also seen among Spanish
that are more ethical 77 percent 74 percent 74
respondents, with more than 90%
percent 74 percent
believing that brands improve product
Workplace practices are superior to those of
quality and increase purchase
small businesses. 73% of the time 75%
possibilities.
Leadership that values equality of treatment
At least three-quarters of those polled
regardless of gender, ethnicity, handicap, or
agree that brands have a beneficial
other factors. 76 percent 72 percent 72 percent.
impact on the economy, job market,
Seventy-seven percent (70%) and seventy-
media, and the environment. The notion
seven percent (77%) of people.
ATTITUDES TOWARD BRANDS IN SPAIN
that brands have a beneficial impact on where Spanish respondents fall short of
WASTE REDUCTION LEADERSHIP
the global average, with 71 per cent
From product quality control to additional value
agreeing vs 80 per cent overall.
to society, both the general public and the
"Strong brands help stronger
Marketing Directors polled understood that
economies, which in turn support
brand benefits can only be given if brands can
employment," Ferrari communication
be sold.
director Jane Reeve said.
Consumers, regardless of product type, do not
the treatment of suppliers is an area
search for restrictions in the most common marketing channels, according to the report. With little variance across product categories, less than 10% of customers said television advertising, billboards, in-store product demonstrations, or unique packaging should be outlawed. Consumers are aware when it comes to brands, but they will not give up their marketing or advertising-influenced inclinations. Consumers understand that brands exist to assist them in making educated decisions. 52
FOOD DRINK MAGAZINE
NOVEMBER 2021
ILLICIT COMMERCE WOULD BE EXACERBATED BY MARKETING LIMITATIONS
ISSUE #16
WHAT ARE THE MARKETING LIMITATIONS?
Marketers and consumers are concerned about gold plating because marketing constraints, particularly simple packaging, might encourage fraud and put customers at risk. "Illegal and low-quality products are intended to look like a regulated drink, which is confusing and puts customers at risk," Shiyan Jayaweera, Lion Brewery's Head of Marketing, said. It's
Any constraint imposed on legal items
difficult to discern the difference between
linked to the expression of brand
legitimate and illegal products.
identity and communication with
Consumers comprehend the significance of
customers is referred to as a marketing
brands in promoting legal sales channels and
restriction. Marketing limits can range
navigating between real and fraudulent
from health warnings to the
products (according to 80-90 per cent in all investigated markets), and this Branding literacy helps explain why most think that brands should be promoted responsibly.
implementation of advertising standards, the enforcement of specific levies, interference with the visual brand, and simple packaging. In addition to tobacco, which has tight limitations in many places throughout the world, food and beverage firms operating in unhealthy segments are at a greater risk of being impacted by marketing restrictions. Strict marketing limits, such as advertising restrictions and plain packaging, harm a brand's capacity to separate itself from rivals in the market, lowering the value it adds to the company.
53
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