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< PreviousIMPORTY & EXPORT T ariffs act as an import tax, increasing prices for consumers and often leading to lower demand as they opt for cheaper, domestic alternatives. This impacts businesses that rely on imported ingredients or components, increasing their costs and reducing their competitiveness. According to estimates from the British Retail Consortium (BRC), similar tariffs could raise U.S. prices by 5-29% for beef, 6-32% for cheddar cheese, 9-18% for tomatoes, and 5-10% for broccoli. For U.S. consumers, particularly lower-income The U.S. has a long history of complex trade relations with the European Union, particularly within the food and beverage sector. Recently, former President Donald Trump’s campaign has proposed new tariffs on certain European food and beverage products, including agricultural goods and processed foods. These potential tariffs could have profound implications, raising consumer costs, disrupting trade flows, and increasing pressures on producers on both sides of the Atlantic. 12 a FOODANDBEVERAGE.BUSINESS • 10FOODANDBEVERAGE.BUSINESS • 0IMPORT & EXPORT households, these increases could strain food budgets, impacting purchasing decisions. On a broader scale, tariffs can reduce trade volumes and cause job losses, particularly in sectors like manufacturing and services. They also disrupt supply chains, leading to product shortages, delays, and inflated costs that compound over time. The effects of U.S. tariffs on specific food and beverage products are significant. For instance, tariffs on European agricultural products such as cheese, wine, and olive oil affect both EU producers, who face decreased export opportunities, and U.S. consumers, who experience higher prices. Processed foods, such as chocolate, pasta, and ready-made meals, are also impacted due to their reliance on imported ingredients, which are now more expensive. Similarly, the wine and spirits industry has seen challenges with tariffs limiting European producers’ access to the U.S. market, reducing sales and revenue. These tariffs exist within a broader geopolitical context of increasing trade tensions. The U.S.-EU trade relationship has been marked by disputes over intellectual property rights, agricultural subsidies, and industrial policy. Although the Biden administration rolled back some tariffs implemented between 2019 and 2021, Trump’s proposals signal a FOODANDBEVERAGE.BUSINESS • 12IMPORT & EXPORT potential return to this cycle of trade conflicts. For example, the recent truce on the Boeing-Airbus dispute lifted tariffs on cheese, wine, and whiskey, offering temporary relief to both U.S. and EU markets. A return to tariffs could quickly re-escalate tensions, reversing the economic benefits of these recent agreements. To mitigate the impacts of tariffs, businesses and governments can adopt strategies such as diversifying markets, innovating new products, negotiating trade deals, and reforming regulations. For example, European cheese producers previously impacted by tariffs found success by expanding into Asia and the Middle East. This diversification provided a buffer against losses in the U.S. and offers a model for adaptation. Product innovation is another avenue, as brands develop unique offerings that add value, thereby justifying higher prices. Governments, meanwhile, can pursue trade negotiations to lower tariff rates and streamline regulations, supporting the industry’s competitive edge. The global food and beverage industry has shown resilience in the face of tariffs and is well-positioned to adapt through market expansion, innovation, and advocacy for fair trade. However, while businesses have developed strategies to counter these challenges, proposed tariffs from Trump’s campaign highlight ongoing uncertainty in U.S.-EU trade relations. FOODANDBEVERAGE.BUSINESS • 13FOODANDBEVERAGE.BUSINESS • 14BAKERIES AND CONFECTIONERIES FOODANDBEVERAGE.BUSINESS • 15 The bakery and confectionery industry has undergone considerable growth and transformation in recent years, despite challenges such as rising costs and the introduction of the sugar tax. Businesses that adapt to evolving consumer preferences and embrace innovation are poised to thrive in this competitive market. This article explores how the sector is navigating these changes through product innovation, sustainability, enhanced consumer experiences, and by overcoming challenges to ensure long-term success. D espite the implementation of the sugar tax and increasing health consciousness among consumers, bakeries and confectioneries continue to enjoy widespread popularity. The integration of artisanal bakeries and coffee shops has proven to be a successful business model, as the complementary pairing of coffee and baked goods resonates with consumers. In fact, research indicates that 40% of customers are more likely to purchase a sweet treat to accompany their coffee. This trend is particularly pronounced as people return to office- based work and seek out comforting environments for a break from their routines. The aroma and ambience of a bakery offer an inviting escape, drawing consumers in for the coffee and encouraging them to stay for the bakery’s unique offerings. Independent bakeries, in particular, are experiencing a resurgence as consumers increasingly prioritize local and unique products over mass-produced goods. This preference for artisanal options has driven the growth of independent bakery sales, which are expected to rise by 25.3% this year, reaching £1.6 billion. Many of these small businesses are capitalizing on the demand for fresh, locally made products by expanding their grab-and-go and online ordering services, helping to capture a broader customer base. Additionally, larger chains such as Costa and Starbucks are enhancing their food offerings through drive-thru sites in high-traffic community and travel areas, demonstrating the strong demand for food and beverages while on the move. The sweets and confectionery industries have also benefited from this surge in popularity, with chocolates and other sweet treats often included in meal deals at supermarkets. Although concerns over health remain prevalent, these items are viewed as convenient sources of energy and indulgence, maintaining their appeal among consumers. To stay relevant and meet shifting consumer demands, bakeries and confectioneries are focusing on product innovation, exploring new flavors, formats, and health- 16 aMIXING & BLENDING conscious options. The trend of fusion flavors continues to gain traction, with American-inspired varieties such as toasted s’mores and salted caramel becoming favorites. Seasonal and limited-edition offerings also entice consumers seeking novelty, while flavors like rosemary, sorrel, and elderflower appeal to those interested inforaged and wild tastes. Australian ingredients such as wattleseed and myrtle are gaining attention, adding a new dimension of taste and texture to traditional baked goods. Beyond flavors, the industry is innovating in product formats. Smaller portion sizes, mini treats, and visually appealing designs, such as character cookies and ornately iced cake pops, cater to consumers looking for indulgence without guilt. At the same time, health- conscious consumers are driving demand for plant- based, allergen-free, and functionally fortified goods. Ingredients like chickpea and almond flours are being used to create vegan and gluten-free options, while fortified products containing added vitamins, minerals, or probiotics position baked goods as part of a balanced lifestyle. Sustainability is also becoming a standard expectation within the industry. With climate consciousness at an all-time high, consumers are looking for businesses to operate sustainably. Bakeries and confectioneries are responding by adopting practices such as using recyclable or compostable packaging, sourcing ingredients locally, and reducing food waste. On-site renewable energy systems, such as solar panels or biodigesters that convert food waste into biogas, help to shrink environmental footprints while offsetting electricity costs. Some businesses are even exploring creative uses of food byproducts to produce sustainable items like ice cream and dog treats. Consumer expectations are no longer limited to the products themselves but extend to the overall experience offered by bakeries and cafés. Establishments are becoming more than transactional spaces—they are evolving into community hubs that foster connection and well-being. The sensory appeal of bakeries, combined with thoughtful service and a welcoming atmosphere, creates an emotional bond with customers, making visits memorable and meaningful. Digital integration further enhances these experiences. Many bakeries are leveraging technology through digital FOODANDBEVERAGE.BUSINESS • 16 BAKERIES AND CONFECTIONERIESFOODANDBEVERAGE.BUSINESS • 17 menus, mobile ordering, and contactless payment systems to create convenient, personalized interactions. Custom apps can store customer preferences, enabling cafes to offer tailored suggestions and promotions. Location-based notifications and online loyalty programs help build engagement and drive repeat visits. Social media has become a powerful tool for bakeries to showcase their creativity and connect with a broader audience. Shareable content such as striking product visuals, behind-the-scenes bakery operations, and user-generated content drive brand engagement and word-of- mouth marketing. While the bakery and confectionery industry is poised for continued growth, it faces several challenges. Rising costs of ingredients, labor, and energy are putting pressure on profit margins. Managing these costs while maintaining product quality and value is a delicate balancing act for businesses. Competition is also intensifying, with new entrants and established players vying for consumer attention. To stand out, businesses need to differentiate themselves through innovative products, unique experiences, and a commitment to sustainability. Adapting to changing consumer preferences is essential for staying relevant. Consumers today are more health-conscious, environmentally aware, and discerning in their food choices. Bakeries and confectioneries that successfully combine innovation with tradition, and offer a diverse range of flavors and formats, will be better positioned to capture and retain consumer loyalty. Value now extends beyond the product to include elements such as ethical sourcing, sustainable practices, and a sense of community. The bakery and confectionery industry is navigating a dynamic and competitive market environment. While rising costs and health concerns present challenges, there are significant opportunities for businesses that embrace innovation and sustainability. By staying attuned to consumer preferences, enhancing the overall customer experience, and leveraging digital integration, bakeries and confectioneries can thrive in this evolving landscape. As the industry continues to evolve, the ability to balance tradition and novelty will be key to achieving long-term success and maintaining consumer trust and loyalty.DEPOSITORS & FILLING Filling and Depositing Technology Elevating Efficiency Elevating Efficiency In the food and beverage industry, achieving precision and consistency in filling and depositing processes is essential for maintaining product quality, enhancing plant efficiency, and reducing waste. Advances in technology, especially in automation and viscosity management, enable manufacturers to optimize their production lines, minimize operational costs, and improve the overall quality of their products. By understanding and implementing these innovations, companies can stay competitive and meet the growing demands of the industry. DEPOSITORS & FILLING M any food and beverage manufacturers still rely on manual or semi-manual filling and depositing systems due to their simplicity and low upfront costs. While these methods provide a basic level of control, they limit production capabilities and increase the risk of inconsistency and human error. Automated filling systems offer a significant upgrade by providing higher throughput, precise portion control, and reduced labor needs. With advanced dosing controls, automated systems can handle a variety of product types and viscosities, ensuring uniformity and quality across all batches. Transitioning to semi- or fully-automated systems allows manufacturers to scale production to meet increasing demands. Semi-automated solutions enhance production speed and accuracy by using preset filling rates and automated dosing controls. These systems ensure that the same quantity of product is deposited each time, reducing waste caused by spills or overfilling. In comparison, fully automated systems, equipped with multiple filling heads, can rapidly fill containers of different shapes and sizes, further boosting production capabilities. Though the initial investment may be high, the return on investment is quickly realized through improved efficiency, reduced waste, and lower labor costs. One of the primary challenges in filling and depositing is managing product viscosity. Viscosity, or the thickness of a liquid, affects how easily a product flows through the filling equipment. Highly viscous products such as sauces, jams, peanut butter, and salad dressings can present significant challenges, causing bottlenecks in the production line and leading to inconsistent filling levels. To address these issues, manufacturers must select equipment that matches the 20 a FOODANDBEVERAGE.BUSINESS • 19Next >