AGP Executive Report

UK Manufacturing Costs: Food and Drink Federation manufacturers are pressing for targeted energy relief in the Autumn Budget, warning that rising energy, transport, ingredient and packaging costs threaten investment and affordability. It forecasts food inflation could reach 3.9% by December and peak at 6.4% next July. Consumer Goods: Unilever beat quarterly sales expectations on growth in beauty and home care, but its food unit lagged; the company and other major brands warn that higher costs could bring further price rises. Food Logistics: DP World has opened a 22,000-square-metre warehouse near Bologna, with organic producer Alce Nero as its anchor customer. The facility offers controlled ambient storage, not chilled or frozen capacity. Farm Supply Chains: Record diesel prices are squeezing Canadian farms, hauliers and processors. Farm Credit Canada estimates a 5,000-acre operation could face $70,000–$100,000 in extra annual fuel costs. Renewable Energy: Northern Ireland has launched a consultation on a biomethane framework that could turn farm residues and food waste into renewable gas, creating potential new revenue for rural businesses. Global Flavours: Açaí product launches have risen 45% in five years, with Asia-Pacific accounting for 35% of launches in the past year as demand spreads beyond established markets.

Beverage Trends: U.S. drinking is at a record low: 54% of adults say they drink alcohol, while 17% tried nonalcoholic beer, wine or spirits in the past year. Supply & Farming: New Mexico confirmed screwworm in a sheep and a cow, prompting expanded surveillance. In Mindanao, officials are linking farmer cooperatives with investors and buyers to grow value-added production in coconut, cacao, coffee and cattle. School Meals: Hawaiʻi is expanding regional sourcing, with Parker Ranch beef now served in school lunches and more local partnerships in development. Restaurant Business: McDonald’s is launching its largest-ever training effort, covering quality and hospitality for 2 million workers worldwide. A proposed U.S. bill would also bar delivery apps from listing restaurants without their agreement. Market Watch: Coca-Cola raised its profit forecast on international demand for soda and premium drinks, while flagging higher costs.

Food Prices: UK shop-price inflation climbed to 2.1% in October, with food inflation at 2.9% and ambient groceries at 3.2%; retailers warn rising energy, transport and employment costs could drive further increases. Company Results: Simply Good Foods reported lower fourth-quarter sales and forecast a 13%–17% sales decline in fiscal 2027. Tata Consumer, by contrast, lifted quarterly profit to ₹469 crore and is expanding beyond tea and salt, with protein water among planned launches. New Products: British startup Oovi launched six functional sodas, targeting shoppers seeking added benefits at accessible prices. Food Security: Sudan’s crisis has left 19.5 million people facing acute food insecurity, with international partners urging aid access. Singapore committed $138 million to food research, with a focus on climate and global supply risks. K-Food: Lotte Duty Free opened a Korean food store at Gimpo Airport and a Korean souvenir shop in Jeju, extending the reach of domestic brands.

Beverage Tech: AoFrio launched an AI assistant that lets beverage brands query connected cooler fleets in plain language. Its survey found 77% of respondents interested in testing AI predictive maintenance within a year. Food Innovation: Precision fermentation could make tailored proteins and other ingredients, but scaling production remains key. Meanwhile, whey prices have surged as demand outpaces supply, sharpening the push to diversify protein sources. Wine Sustainability: Eight major retailers and wine businesses have joined a regenerative viticulture initiative, pledging targets and progress reports as it works toward 10% of the world’s vineyards farmed regeneratively by 2035. Industry Leadership: Marzetti named Mark Christenson president of its retail business, alongside new brand and customer leaders, as it seeks growth across its portfolio. Supply Risks: UN trade officials warn that higher fuel and fertilizer costs tied to the Middle East conflict could reduce fertilizer use in Africa and put next year’s harvests and food prices at risk.

Export Growth: Jordan’s food-industry strategy aims to lift exports to JD1.61 billion by 2029, with a focus on higher-value products and expanded international reach. Crop Innovation: China’s Origin Agritech advanced three corn varieties toward approval after they outyielded controls by 6% to 8.6% in trials. Market Expansion: Wow! Momo plans to open in Sri Lanka by year-end, its first overseas market, and is considering the UAE and US. Food Access: Food insecurity affected 33% of Australian households, with the report finding growing pressure on middle-income families. Processing Investment: US dairy companies are putting $15 billion into new capacity across 23 states, while the Trump administration has announced a $5 billion plan to support the seafood industry. Food Safety: US enforcement of the food traceability rule has been delayed until July 2028, giving businesses more time to prepare.

Seafood Investment: The Trump administration has proposed a voluntary “U.S. Caught Seafood” label and more than $5 billion in loans to expand domestic seafood and meat processing. Dairy Growth: U.S. dairy companies are investing $15 billion in new and upgraded processing capacity across 23 states, betting on rising demand and export opportunities. Alcohol Headwinds: Wineries and breweries are closing as drinking declines; Australian wine exports have hit a 22-year low, while agricultural group Camellia warned of a 2026 trading loss as costs rise and crop prices weaken. Food Safety: Bangladesh campaigners are pushing front-of-pack warnings on foods high in sugar, salt and saturated fat. Delhi authorities separately destroyed more than 900 kilograms of adulterated or spoiled festive foods. Restaurant Scene: Sydney’s Esca Group has opened Loa, a late-night cocktail and music venue beneath its new Nikkei restaurant, Amé.

Food Security: Malaysia plans to expand special fishing licences from 17,000 to 20,000, giving more small-scale fishers access to fuel subsidies and monthly support. The UAE is also strengthening supply resilience by diversifying suppliers and transport routes. US Hunger: SNAP enrollment fell 13% in a year, from 41.6 million people to 36.5 million, as food banks report rising demand. Industry Priorities: UK food leaders called for closer government-industry cooperation on food security, public health and sustainability at IGD’s Future of the UK Food System conference. Retail Reset: Shoprite Nigeria plans to rebuild through smaller neighborhood stores after financial pressures forced a temporary shutdown; three outlets have reopened. Beverage Competition: KFC will replace Pepsi with Coca-Cola at 3,700 US restaurants, while Pepsi has secured an 11-year Taco Bell deal. Meanwhile, THC drinks are sharpening tensions between US alcohol makers and distributors. Business Strains: UK frozen-food supplier Quality Bites has gone into liquidation after supplying more than 1,000 stores. Trade and Innovation: India used its SIAL Paris showcase to promote climate-resilient farming and food exports.

Corporate Moves: Abbott plans to spin off its nutrition business as it faces mounting legal pressure. PepsiCo, meanwhile, has extended its Taco Bell partnership for 11 years, through 2036. Supply Chain: India has pushed back aluminium-can certification deadlines for beverage makers amid shortages that are constraining beer and soft-drink production. Food Safety: The CDC is tracking five active foodborne outbreaks linked to oysters, cheese and sprouts, while a fatal fire engulfed food shops in Noida. Agriculture: Sabah is targeting a rise in rice self-sufficiency from 22% to 40% by 2030, alongside investment in infrastructure, technology and climate resilience. Cambodia is also urging businesses to invest in food processing and quality standards to move beyond raw-commodity exports.

Agrifood Investment: Sabah is targeting 40% rice self-sufficiency by 2030, up from 22%, alongside plans to improve infrastructure, technology, market access and climate resilience for farmers and fishers. Export Quality: Indian rice industry participants say farm-level pesticide controls and traceability are vital to cut export rejections; pesticide residues accounted for 69% of recent rejections in European markets. African buyers remain keen on Indian rice but say higher prices are curbing large orders. Regulation: Maharashtra has asked the Bombay High Court to overturn food-safety rules it says give federal regulator FSSAI too much enforcement power, setting up a dispute over state authority. Beverage Deals: British rum maker DropWorks is partnering with Fortnum & Mason on an exclusive 160-bottle single-cask release. Restaurant Supply: PepsiCo extended its exclusive Taco Bell beverage deal through 2036, maintaining a key fast-food distribution partnership.

Agri-food Investment: The European Investment Bank will provide Moldova €150 million to modernize farming, processing, storage and logistics, helping producers reach EU markets. Qatar Retail: MoCI trained food suppliers and major retailers to use digital services and reduce errors that delay applications. Widam Restructuring: Qatar’s Widam Food plans to cut QR130 million in capital to cover accumulated losses, then convert QR30 million in bonds into shares. Portfolio Expansion: Colombia’s Grupo Nutresa agreed to acquire hamburger chain Presto, adding its restaurants and production facilities to the group’s food-service business. Nestlé Turnaround: The company reported third-quarter organic sales growth of 4%, with a U.S. rebound in snacks and frozen foods, as its CEO pursues a turnaround and plans to cut 16,000 jobs over two years. Food Safety: Dutch scientist Huub Lelieveld won the 2026 World Food Prize for advancing global food-safety standards. US Food Policy: A federal definition of ultraprocessed foods has reportedly stalled, leaving manufacturers, retailers and consumers without clearer guidance.

Supply-chain risks: A new BSI and CIPS report says 97% of surveyed food and drink businesses identified modern-slavery or serious labour-rights risks in their supply chains, while few can show their reporting systems are effective. Poultry investment: Ghana has secured a $270 million agreement to develop domestic poultry production, targeting 12,000 jobs and a smaller chicken-import bill. Industry shifts: Nestlé plans to close its Ohio pouch factory by the end of 2027 and move production to South Carolina, citing changing demand and a push for more efficient facilities. Delivery economics: Swiggy’s food-delivery business posted record adjusted EBITDA of ₹341 crore, but its quick-commerce arm recorded an ₹895 crore loss as expansion costs mount. Brand partnership: PepsiCo and Taco Bell extended their U.S. beverage deal through 2036, keeping Baja Blast and other Pepsi drinks on the menu. Food disruption: A truckers’ strike in southern Italy has left supermarket shelves short and agricultural produce stranded, with some food producers halting harvests and production.

Beverage Deals: Taco Bell extended its PepsiCo partnership through 2036, with plans for new drinks and flavors, even as KFC switches to Coca-Cola. Food Business Shake-up: Abbott plans to spin off its nutrition business as a standalone company, following years of turmoil over infant formula. Supply Chain Pressure: A major drinks supplier to Tesco and Asda collapsed into administration after 27 years, while PepsiCo is shutting a Tennessee bottling plant amid falling soft-drink volumes. Delivery Economics: Food delivery remains a small slice of Nigeria’s restaurant spending, constrained by costs, while Just Eat plans hundreds of job cuts in Switzerland. Food Security: A first harvest of perennial rice in Sarawak could help boost local production; the state currently grows only about 21% of the rice it needs and aims to reach 60% by 2030.

Drinks Distribution: Amber Beverage Group UK, a supplier of international brands to major supermarkets, has entered administration after reporting losses of more than £21.1 million and failing to find a buyer. Delivery Economics: Swiggy’s second-quarter revenue rose 36% year on year to ₹7,571 crore, while its net loss narrowed annually but widened from the previous quarter as quick-commerce losses grew. Food Costs: Sainsbury’s chief executive says Christmas price rises should be less severe than feared, but urges the UK government not to add tax or regulatory pressure on food businesses. In Canada, 76% of consumers say food costs have risen most over the past year, while higher transport costs are squeezing grocery budgets. Commodity Outlook: Malaysia’s palm oil council expects prices to stay above RM4,600 a tonne in November, citing seasonal production declines and biodiesel demand. Agri-Food Investment: Malaysia plans an agrofood zone in Perlis to increase grain corn production, reduce reliance on imported animal feed and strengthen food security. Global Markets: Nestlé’s sales beat forecasts as the company deconsolidated its Russia business.

Trade Costs: U.S. importer Gellert Global is challenging 50% tariffs on Canadian goods in court, warning of added pressure on food and beverage costs. Food Affordability: Canadian food banks recorded 2.35 million monthly visits in 2026, up 117% since 2019, as food prices climbed about 30% since 2021. Nutrition Business: Abbott plans to spin off its nutrition division and cut its 2026 sales-growth outlook, following years of turmoil over infant formula. Restaurant Competition: Fast-casual chains continue to outpace overall restaurant growth, while fast-food operators face weaker traffic; Flipkart is also testing a food-delivery service to challenge India’s Zomato and Swiggy. Beverage Deals: KFC plans to replace Pepsi with Coca-Cola at 3,700 U.S. restaurants in 2027, ending a partnership of nearly 40 years.

Food Affordability: Rising electricity bills are forcing one in five surveyed Americans to cut grocery spending. In Canada, monthly food-bank visits have more than doubled since 2019, reaching 2.35 million in March. Food Supply: Nigerian stakeholders say the country has 11 million tonnes of perishables needing cold storage but less than 20,000 tonnes of long-term capacity, leaving produce vulnerable to waste. Malaysia’s poultry sector is expected to stay resilient on steady demand, though reliance on imported feed leaves producers exposed to price swings. Market Moves: Flipkart is testing a food-delivery service in Bengaluru, preparing to challenge Zomato and Swiggy. KFC will switch from Pepsi to Coca-Cola at about 3,700 U.S. restaurants starting in 2027. Food Safety: Bangladesh will require registration or licences for food businesses from Nov. 1, covering everything from stalls and restaurants to processors and importers. Innovation: Wrexham food-waste firm Mimica secured funding to expand production of its freshness indicator, which responds to real storage conditions.

Trade Costs: New Jersey importer Gellert Global is challenging the U.S. government’s 50% tariffs on Canadian goods, saying the duties disrupt supplier relationships and drive up costs; it reports paying more than $520,000 in duties in less than a month. Restaurant Growth: Tropical Smoothie Cafe signed a 40-location development deal across New York and Connecticut, with its first opening planned for early 2027. Aquaculture: New York added $6.5 million to its commitment for a new Long Island shellfish hatchery, bringing total state funding to $16.5 million and supporting oyster and clam production. Value Push: Wendy’s is testing a $7.99 Dave’s Single meal deal as it works to revive traffic and sharpen its value offer. Beverage Trends: A Pilot Co. category manager says shoppers increasingly discover drinks through brand stories, culture and experiences, making co-branding a way to build familiarity and prompt trial.