Despite the 90-day pause on many of the reciprocal tariffs impacting the F&B industry, retailers and manufacturers are feeling anything but calm. National Retail Federation data suggests the sector has adopted a conservative approach to the next quarter, with many retailers relying on built-up inventory.
General Mills faces mounting challenges such as market volatility and cautious consumer behavior, as tariff pressures also begin to weigh on its performance. It begs the question: Can legacy brands reclaim their once-unshakable dominance?
Lou Biscotti from CBIZ explains how uncertainty, tariffs, geopolitical tensions, and inflation are impacting the food and beverage industry.
Tariffs rattled the stock market, leading to a sharp overall decline, yet food industry stocks like McDonald’s demonstrated resilience, buoyed by their perceived safety in economic downturns. This reaction highlights the food sector’s potential advantages in navigating recessionary environments.
One veteran supply chain expert said the ongoing North American trade war is the most volatile he’s ever seen. The trade spat has several wrinkles – not the least of which is the fact that Canada is the world’s largest exporter of canola, as well as potash that’s used to produce fertilizer.
Trump administration tariffs continue to warn the F&B sector; however, there are options to evade its impacts through careful sourcing strategies. Data and new technologies present opportunities for brands to take control of the situation.
Recent supply chain disruptions further prove that operators need to consider ways to integrate resilience into their approach. One key method is through integrating flexibility into shipment processes.
The latest FI Fast Break news podcast touches on another notable restaurant bankruptcy, and Filipino cuisine’s surging popularity.
