Restoring quality as a priority to increase customer trust
It’s fair to assume that the food and beverage business has had difficulties during the past several years. Brexit adjustments, labor shortages and supply chain disruptions brought on by the epidemic, and an increasingly unstable economic environment have all placed a great deal of strain on firms. Throughout the business, a great deal of organizations have had to make tough choices and have had their operational resilience severely tested.
However, very few things are as widely necessary as making sure that the food supply chain is both secure and long-lasting. It is essential to establishing and preserving consumer confidence in the industry.
What are the challenges that food businesses believe will have the biggest effects on their operations? And which might be making them lose focus on other dangers that could have longer-term effects on their company and the sector?
New dangers facing the sector
Ideagen has carried out research on the main perceived risks for food and beverage companies in the United Kingdom. In order to assess how a post-COVID and Brexit world is affecting their day-to-day operations and financial line, it also compares data from earlier research projects carried out in
According to our research, since 2018, UK food producers of all sizes have been more concerned about the safety of their products. Though the number of businesses mentioning it as a risk factor rose by 10%, it was overtaken by other developing threats like supply chain issues, Brexit, and inflation.
Businesses may find it easy to ignore other hazards that could affect not just the operational capacity of food producers but also the overall safety of the food supply chain due to the proliferation of these new and developing difficulties. While the fact that product safety is being acknowledged by more organizations is encouraging, the fact that it only made appearances in 27% of the risk and uncertainty statements that were reviewed and fell out of the top 10 indicates that realignment is probably necessary.
The image of the consumer
Emerging risk factors like COVID-19, Brexit, and financial instability are focusing energies in a direction that is strongly at variance with Ideagen’s consumer research survey results, which showed that people prioritize quality when buying food.
When it comes to food, more than half of those surveyed (54%) indicated that quality matters more than price, and 56% said that when making food purchases, it’s more important to look for indicators of assurance like safety and quality markings.
Furthermore, food scandal incidents that fail to live up to quality assurance standards leave a lasting impression on consumers for decades. According to our consumer poll, 25% of respondents mentioned how the Mad Cow Disease controversy and the 1980s egg scandal affected their thoughts and purchase decisions. Additionally, 62% of respondents remembered the occurrence of salmonella in eggs. Between 2018 and 2022, reputational damage completely vanished from risk registers, despite the obvious effects it can have.
Consumers prioritize the safety and integrity of the products they put into their bodies over price or value, and if their expectations are not satisfied, the public’s perception may be negatively impacted for a considerable amount of time. However, the sector finds it difficult to put it above other risk criteria, such as operational viability. Given the recent global media attention on food fraud and supply chain integrity, companies must be free to prioritize quality if they want to maintain their competitive edge and win over customers.
Finding a balance between resilience and quality
Food producers are clearly focusing more on the product’s quality and safety, but it might be challenging to balance risk variables that are beyond their control. So, how can companies respond to these new dangers while taking the requirement for quality from the customers into account?
In the end, knowing precisely what customers want from quality assurance can help manufacturers focus their resources where they will have the biggest impact.
Our research found that consumer confidence and purchasing decisions are mainly influenced by respected, formalised and recognised assurances that promise quality, particularly when it comes to food. Food quality symbols are a key factor that shape consumer trust in the food industry, with 55 percent of respondents more likely to pay attention to a quality standard symbol if it’s food related and symbols such as Fairtrade, British Lion Quality and Red Tractor being the most identifiable.
It’s simple to shift attention away from other hazards that could eventually affect success and customer trust when new ones appear every day. One excellent illustration of this is quality. Nonetheless, companies may guarantee quality and provide themselves ample leeway to address risks by obtaining detailed insights into the factors that influence customer expectations for quality assurance.
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Changing quickly
There is a lot of pressure on food and beverage companies right now, testing the industry’s resiliency. However, the industry is inherently flexible, having a lengthy history of adjusting to both changing customer demands and global events. By allocating resources towards consumer-driven priorities and implementing strong quality, safety, and supply chain management protocols for food items, the industry can stay innovative and adopt cutting-edge technology that can help them prioritize quality in their operations amidst current challenges.