Inflation Drivers Assessment for a Leading Plastic Packaging Business



Our client, a leading supplier of PET and PP trays and containers to European fresh and frozen food suppliers, asked Food Strategy Associates to review European growth prospects in the context of COVID-related labour and transport issues, increasing oil and gas prices, evolving regulations on meat consumption and anticipated overall inflation and reduced disposable income. The client wanted to know how to approach their clients to build better relationships without focusing on price rises.

What we did

  • One week into the project Ukraine was invaded by Russia. This created a lot of volatility in agricultural and energy products and in logistics and made it difficult to predict the outlook on prices, consumer confidence and income
  • Through scan data, desk research and a comprehensive programme of interviews with customers, retailers, food manufacturers, food associations and government advisors FSA developed a detailed overview of inflation drivers in these countries.
  • We reviewed historic shocks to understand the effect on meat consumption – price changes, overall volumes and shifts between meat types
  • We interviewed customers and other food manufacturers to understand the key topics and issues that they were focused on
  • We analysed the effects of COVID on volumes and helped the client anticipate overall volumes changes as lockdown eased

Results delivered

  • Our client was able to plan better for customer meetings, anticipating the key issues
  • Our client was in a better position to plan volumes for the coming year