FoodBeverageInnovation

01 Early Optimism When I first started analyzing Chinese trade policy, food regulations and China dairy sector market data back in 2013, I, like many others, could be forgiven for getting a little caught up in the hype. Billions of dollars up for grabs, a 300 million strong middle class with deep pockets and a penchant for imported products, extremely low breastfeeding rates, baby booms and a huge distrust of domestic product quality and safety. As bad as this was for China it seemed like a golden opportunity for international dairy whose only competition was a domestic Chinese dairy sector still reeling from the impact of scandal and further hampered by a lack of technical capacity, animal husbandry and breeding, pasture management, processing technology etc. For international dairy facing global pricing pressures, it looked like a panacea to all that was ailing them. Let the good times roll....or... maybe not...fast forward 5 years and we see hundreds of SMEs forced...

A dramatic shift in food preparation practices, a Millennial baby boom, and a strong focus on healthful, natural, and nutritional offerings  are resetting priorities for food and beverage marketers. Despite the recent media preoccupation with clean labels and free-from foods, the food industry remains driven by convenience. Ready-to-drink tea and coffee—up 19.5% and 14.6%, respectively, in dollar sales for the year ended (Y/E) Oct. 1, 2016— were among the top 10 fastest-growing grocery categories last year. Sales of lunch combinations (e.g., premade sandwiches, snacks, and cheese/cracker kits) grew 14.4% (Figure 1, Nielsen 2016). The fastest growing ten major food categories (annual sales of $500 million) Source:Foodtechnology In the fresh aisles, strong performers included value-added fruit and vegetables, side dishes, foo...