Color Me Natural: Navigating FDA’s planned phase-out of 6 synthetic dyes
On April 22nd the FDA announced a planned phase-out of six petroleum-based synthetic dyes by the end of 2026. While the details and exact timelines of these new regulations are still being finalized, this regulatory change is anticipated to have a considerable impact on the food and beverage industry and major players like PepsiCo are […]
5th anniversary of pandemic – and another global supply chain disruption
For the 2nd time in just 5 years, the world is potentially experiencing another major supply disruption – this time in the form of a global trade war. Like the pandemic, the threat of a change in the global tariff environment underscores the importance (and value) of maintaining flexible supply chains and strong risk management […]
Is enhancing operational efficiency a key pillar of your value creation playbook? If not, it should be.
While not as exciting as M&A and organic growth, increasing operational efficiency typically is a significant value-creation opportunity for middle market food & beverage manufacturers. Yet a Bain Consulting study in 2023 found that ~90% of the Private Equity returns in the prior decade came from multiple expansion and revenue growth (often M&A driven), versus […]
Inventory Loss: The Hard-to-Track P&L Killer
In our last Saphineia Insight, The Six-Million-Dollar-Man, we discussed the value creation opportunity at middle market Food & Beverage manufacturers from enhancing procurement practices. Inventory control is the opposite side of this same coin. For the same reason that there’s a lot of money at stake in procurement (ie, materials costs typically represent 50%-60% of […]
Food & Beverage Manufacturing’s Six-Million-Dollar-Person: The Chief Procurement Officer
Do you remember Steve Austin? If you’re not old enough to have watched this 1970s TV show, Steve Austin was the main character in The Six Million Dollar Man, an American science fiction and action-adventure television series. The show was about a former astronaut, U.S. Air Force Colonel Steve Austin, portrayed by Lee Majors. After […]
Bacteria don’t know – or care – what you got on your last SQF Audit
In the course of our work, Food & Beverage manufacturing executives and investors frequently refer to the strong score they received on their most recent SQF or BRC Food Safety Audit as evidence of the strength of their quality systems. Yet in the last year alone, four multi-billion-dollar food manufacturers have closed a manufacturing facility, […]
Everyone Gets an ‘A’ – Lessons For Food & Beverage Manufacturers and Investors
Grade inflation in education Last December, the Wall Street Journal article, “Grade Inflation Makes A the New C”, addressed secular grade inflation in U.S. higher education. The article referenced an anonymous survey by The Harvard Crimson in which 69% of Harvard’s 2022 graduates told the Crimson that their GPA was 3.8 or higher, up from […]
My 91-Year-Old Dad’s Hospital Stay – Lessons for Food & Beverage Manufacturers
Recently, my 91-year-old father fell, broke his hip and required surgery, necessitating long hospital and rehabilitation stays. The day after surgery, my mom and I were in his hospital room when a nurse came in and said, “Sir, we need to do an EEG; I am going to attach 28 discs to your scalp.” I […]
The Dangers of Relying on Tribal Knowledge
Relying on tribal knowledge can be dangerous: A Real-Life manufacturing nightmare The events described below are true. Names have been changed to protect the confidentiality of those involved. Imagine you run a profitable condiment manufacturer. Your business is growing 25% annually, driven by demand for your company’s innovative R&D capabilities. Then, one day, several longstanding […]
