Food industry: May it be a little bit more?

As companies in the food industry to decouple itself from the stagnating market and write their own growth story

The consulting firm Munich Strategy Group (MSG) has taken the forces of growth in the German food industry closer look. How can individual SMEs, to step out of the development of their industry and to write their own growth story? Then are the created in cooperation with HSH Nordbank recent study by the MSG surprising answers.

The study findings are based on research and analyzes in the period from September to December 2013. In addition to a comprehensive enterprise survey and numerous interviews with experts in the food industry in particular forms a performance analysis of 144 companies from all segments of the medium-sized food industry, the empirical basis of the study.

One important finding: there is no one recipe for success for sustainable and above-average growth in the food industry. Rather, high-growth companies are each characterized by a comprehensive and coherent concept. As the study shows, there are some key similarities among companies with above-average growth rates.

Differentiation beats price leadership

Successful food companies have a very independent profile in their strategic orientation. Remarkable: With above-average depth of added value, a high level of refinement and service and a comprehensive range of products, they create a high level of market exploitation. They are also more successful abroad than companies that tend to focus on cost-driven positioning.

Visions, not restrictions, as a measure of action

High-growth companies are also characterized by the fact that they do not use their current possibilities and restrictions as the yardstick for their actions. Rather, the thinking is directed towards the desired goal - the entrepreneurial vision - and from there seeks the necessary ways and means to achieve the goal. The planning process does not represent the “extended present”, but is driven by the desired result. This effect is particularly evident in growth financing.

Many of the food companies examined have thin equity capital - a good third live with an equity ratio of less than 20%. Nevertheless, the search for new sources and forms of financing ranked under “further running” for the majority of the companies surveyed. Growth champions are much more open to innovative financing instruments and think more in terms of results (income) than in terms of restrictions (liquidity).

Growth begins in the mind: the culture is decisive

Anyone who wants to successfully develop mature, highly developed markets must accept complexity as an inevitable part of their business model and master it through suitable structures, processes and rules. The conscious handling of complexity, the targeted acceptance of risks and the openness to innovations and new forms of organization place high demands on the employees in the company. Food companies can only grow sustainably if they create the conditions for their employees and develop their own growth culture. This culture looks different in every company. However, there are commonalities in the joy of experimentation and error culture as well as a consistently stronger market and customer orientation of the various departments.

About the Munich Strategy Group (MSG):

MSG is a management consultancy that specializes in advising leading medium-sized companies on questions of strategy and growth. MSG's customers include nationally and internationally active medium-sized companies in the food, packaging, construction and mechanical engineering industries.

About HSH Nordbank:

As a "bank for entrepreneurs", HSH Nordbank concentrates on the target group of owner-managed upper German medium-sized companies and their owners. For these customers, the bank wants to be a strong partner in all financial matters. HSH Nordbank now looks after a broad portfolio of companies in the food industry.

The complete results of the survey can be requested from:

Munich Strategy GmbH & Co. KG Ms. Daniela Süss Kopernikusstrasse 9 81679 Munich Telephone: 089 - 414 244 980 E-Mail: This e-mail address is being protected from spambots To display JavaScript must be turned on!

Source: Munich [Munich Strategy Group]