Business disruption is a serious threat to food and beverage companies, according to the Global Food and Beverage Risk Outlook 2024 by global consulting and brokerage firm WTW.
According to its website, nearly half (48%) of food and beverage companies cited business interruption as the biggest internal risk to their success.
This was followed by supply chain risk, cited by 40% of companies. Managing turbulence and potential disruption has become standard practice in the food and beverage sector, aided by global instability, conflict, climate change and the cost of living crisis. As a result, companies are cautious about their future.
More than 41% of food and beverage companies cited improving liquidity as the top strategic goal for the next two years, ensuring they have the financial resources to weather further shocks. Other key priorities include cost reduction, which 38% of companies focus on, and business stabilization (a goal for 35% of companies).
In addition, companies are increasingly questioning their ability to keep up with rapidly changing consumer tastes and preferences: 36% see this as a risk. However, this challenge also represents an area of opportunity, as companies can capitalize on the latest consumer trends.
Despite the challenges, food and beverage companies are actively working to improve resilience. Nearly half (47%) review their business continuity plans every six months and 31% do so quarterly.
However, more than a quarter 29% of these businesses reported that their insurance policies only cover property damage in the event of extreme weather, not including business interruption coverage, which is necessary for recovery and resilience.
