Prepared Foods Exclusive: Gradual Changes in Food & Beverages
September 14/Bensenville, IL/Prepared Foods -- At Prepared Foods' New Products Conference over the weekend, David Houser, an investment banker with Lincoln International, predicted food companies will return to investing in research and development in the next six to 12 months. "I am starting to see food companies get out of that 'let's hoard cash' mentality," he explained just before the audience learned that total food and drink product launches for the first half of this year (7,176 in total) are down 42% from the 12,507 new items appearing on supermarket shelves in the first six months of 2008, per Mintel Global New Products Database.
Houser is seeing signs of improvement and foresees lending activity increasing as the credit market begins to thaw and investors become less risk-averse. He feels food companies will think similarly when it comes to development, introductions and innovation.