Volatility in commodities to be a major consideration for drinks industry in 2013: Rabobank

On 29 January, Rabobank released a report on the global beverage industry in 2013, forecasting that increased consumption away-from-home would be a key driver in global coffee growth. The report said other key factors driving growth in coffee would be innovation in single cup brewing, as well as “premiumisation” with consumers choosing to drink higher quality coffee.   The report, entitled “Thirsting for Growth”, provides a forecast of the impact of weaker demand in developed markets, slower growth in emerging markets, and price and supply volatility for beverage-related commodities. The outcome, the bank said, is that 2013 will see beverage companies focusing on new sourcing strategies to increase security of supply.  The authors of the report highlight that a major concern for all beverage companies in 2013 is the outlook for commodities.  “Strategic sourcing requires beverage companies to re-evaluate their procurement processes through the lens of global supply and demand, to better understand the impact of price volatility, security of supply and related risks,” said Ross Colbert, Global Beverage Strategist for Rabobank and lead author of the report, in a statement. “This approach has led global brand owners to develop dedicated supply chains, where suppliers, processors, distributors and even retailers are more aligned and operate in a more integrated system.”