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Atlanta, GA, United States, 2008/10/15 - Innovation is a top-of-mind issue among Food and Beverage companies. TSG provides 12 key factors companies should consider to systematically innovate across the enterprise and evaluates 10 top Food and Beverage companies according to these criteria.
TSG today announced the release of The Innovation Agenda for Food and Beverage Companies™, which evaluates the efforts of major food and beverage companies to invest in innovation and provides key success factors for achieving Innovation Driven Growth (IDG) in the Food and Beverage (F&B) industry.
TSG sees innovation as a critical but undermanaged component of corporate growth and believes achieving growth through innovation requires a company to look beyond existing product lines and take a systematic approach to innovating across the enterprise. In The Innovation Agenda for Food and Beverage Companies™, TSG performed a holistic analysis of innovation. Taking a 360⁰ view of corporate innovation, TSG determined 12 key factors influencing successful innovation among Food and Beverage companies. Using these 12 factors, TSG scored 10 major F&B companies: The Coca-Cola Company, Groupe Danone, Dean Foods, General Mills, The Hain Celestial Group, Kellogg’s, Kraft Foods, Nestlé, PepsiCo and Unilever.
In the F&B industry, companies are continuously evolving their products in an attempt to capture and retain consumer interest. TSG believes Innovation Driven Growth will become even more important to F&B companies as the industry reacts to several macro forces including consumers’ demand for health and wellness, the rise of non-western economies, and the development of new product formats. These forces are driving companies to revamp and reinvigorate their existing product lines, invest outside their four walls, assess their existing organizational structure, and revisit their investments and core research.
According to Panna Sharma, Managing Partner and CEO of TSG, “There will be massive and systemic change in Food and Beverage companies’ portfolios as they react to these macro forces.” Addressing these macro forces will require F&B companies to approach innovation in a more systematic manner at the enterprise level. Companies most likely to succeed in transforming their portfolios in a timely and capital-efficient manner will focus on innovation across 5 central categories:
• Corporate Vision - The overall focus or commitment of the company;
• Supply Chain/Value Chain - How the company creates and distributes products to customers;
• Product Development - Management of new products and product line launch and development;
• Organizational Structure - Internal organization (departments, divisions, positions);
• Financial Management - The results and structure of the company’s income statement and balance sheet.
TSG further analyzed these 5 categories to develop the 12 key factors that comprise The Innovation Agenda for Food and Beverage Companies™. These 12 factors can be used as both a diagnostic and a guide for where companies should potentially invest and focus their spend on innovation.
TSG used these 12 factors to score 10 major Food and Beverage companies on their commitment to innovation. Companies were divided into “Leaders,” “Followers,” and “Laggards.” Based on analysis of these companies’ performance across The Innovation Agenda for Food and Beverage Companies™, TSG suggests that investing in the innovation pipeline will accelerate organizational innovation and build a strong foundation for sustainable corporate growth. Food and Beverage companies that are committed to systematic investment across the 12 key factors of the Innovation Agenda are well-poised for sustained sector leadership.
TSG (tsg-partners.com) is a specialty advisory group that combines growth strategy and corporate finance to create shareholder value for companies in the life sciences, biotechnology, healthcare, and wellness sectors. TSG’s approach is based on a combination of independent analysis of the markets and customer needs and a deep appreciation of the technology landscape and capital markets environment. TSG’s focus on growth aims at bringing together growth strategy and transaction insight to build sector leaders. TSG has presence in Atlanta, Boston, New York and Silicon Valley and was founded in 2001 by Panna Sharma.