In the drink
And then one day, your business is celebrating another milestone – running for more years than you remember. How did that happen? The journey has been full of mistakes, adventures, disappointment, tears, joy, fun, finding what works, learning what doesn’t, never quite getting there, wondering if something else is out there, trying to keep going, keep believing, keeping positive.
But you’re still here. In the beverage industry that is quite something. Highly competitive and notoriously price sensitive, it is renowned for not taking prisoners. Yet, those in it are managing quite nicely, thanks.
New research reveals businesses in the beverage manufacturing industry have a business survival rate of over 41%, the second highest of any UK industry.
Sopro, a global multi-channel prospecting service that enables B2B businesses to sell more by discovering and engaging their future customers, has revealed the UK industries with the best survival rates, and offer tips on how to maximise profits.
When speaking to Food & Drink Technology, Steve Harlow, chief sales officer at Sopro, notes the strong survival rates of businesses in the beverage manufacturing industry in the UK, at 41.5%, according to ONS data, despite intense competition in the sector.
Only 1,325 of the 2,265 new enterprises founded in this sector did not last the five-year period. This could be attributed to the consistent demand from both individual consumers as well as hospitality businesses.
“The administrations in the sector were likely impacted by supply chain problems, wage and labour disputes, as well as cost increases,” he reasons.
Due to the financially crippling effects of Covid-19 lockdowns, as well as cost inflation, many of these enterprises suffered.
Harlow says of beverage businesses: “The rising cost of energy also affected many businesses across the board by driving up outgoings, making it harder for the food and beverage industry to keep up and remain profitable.
“The businesses that did survive had to adapt and be resilient to overcome the challenges they faced during lockdown and beyond. Food and drink delivery or collection from licensed establishments were popular options. Many firms were able to adjust to enable remote deliveries, which undoubtedly helped to sustain business operations during the challenging last few years.
“Along with delivery and collection, e-commerce has proven to be a profitable option for beverage companies to maintain revenue. From breweries to wineries, many companies have opened online shop fronts both during and after the pandemic to capitalise on the increasingly digital business landscape.”
Harlow says for any struggling or new firms in the beverage sector, it’s critical that you do your research in order to have a real chance of success.
Concluding he says: “You’ll need to consider market size, trends, growth rates, and competition when choosing a specific niche – as well as how you’ll set yourself apart from the competition.”
- Rodney Jack, editor, Food & Drink Technology.
Keep in touch via email: [email protected] Twitter: @foodanddrinktec or LinkedIn: Food & Drink Technology magazine.
