Food, Beverage & Consumer Goods

There are numerous factors that impact operations and give rise to direct and indirect losses. Whilst not an exclusive list, areas of potential loss and implications include:

• Raw material / ingredient contamination – increased costs may have to be incurred in order to source alternative materials and, or there may be trading losses if alternatives are not available.
• Stock / inventory valuation issues may occur, particularly where long storage times are required (e.g. wines or spirits). Revenue losses may manifest and continue many years after an incident, making pricing unknown and difficult / impossible to predict. There may also need to be consideration of what discount factor should be applied.
• Returnable packaging may be used, which means that a company’s packaging assets (e.g. beer kegs, crates, bottles) are not in one location, but spread over a large area and many different locations.
• Seasonality and heavy dependence on unpredictable and uncontrollable variables such as the weather.
• Market forces on certain product lines may be unpredictable due to fashions and trends – what was popular last year may not be so this year.

We have successfully worked on Food & Beverage instructions globally.