Sunridge Partners (UK), LLP (“Sunridge”), a specialist food and agriculture investor, helping companies become clear industry leaders, held its annual European Food & Agriculture Leadership Dinner in London.
The event was attended by CEOs, industry thought leaders and policy makers, who came together to discuss shifting geopolitics and the implications for food security and affordability, key consumer trends in Europe and solutions for rising production costs.
Key topics covered included:
- Inflationary Pressures & Food Affordability: Almost all participants in food and beverage supply chains are experiencing pressure with regards to increased input pricing (labour, energy, fertilizers, packaging, etc) and the knock-on effects this is having for the end consumer, resulting in purchasing habit changes. While discounters/warehouse clubs, private label and core/essential ranges are examples of net beneficiaries of inflation, higher-end retailers, mid-range restaurants and organics are net losers. Guests also noted a worrying rise in food poverty across most OECD markets.
- El Nino: With many global food supply chains already strained from COVID backlogs, volatile economics and geopolitical tensions, an El Niño in 2023-2024 has the potential to wreak further havoc, decreasing supply globally as a result of drought in key production regions, resulting further inflationary pressure.
- Climate Resilience: With topics like El Niño, it is becoming increasing clear that efforts to curb carbon and other emissions that contribute to global warming are either ineffective or insufficient to slow down increasing average temperatures. The group discussed how new technologies, growing regions and inputs will need to adapt for higher temperatures, more volatile weather conditions and increased pest and disease pressures. There were many interesting solutions discussed.
These confidential and intimate discussions, while simultaneously being spoiled with some of the UK’s best fresh ingredients, thoughtfully curated dishes and beverages, are always thought provoking and insightful.