Winning a large retail contract is a coup for any food manufacturer. However, supermarket price wars and changing food presentations to gain and maintain the interest of consumers, means that many manufacturers are being squeezed out of the market.
Today, most manufacturers understand the efficiencies gained from automation. Even so, many are still reluctant to invest in equipment for fear of not being unable to recoup their costs if the contract is terminated. Although the short-term nature of retailer contracts is a contributing factor to their reluctance to invest, other issues also come into play, including lack of technical knowledge, space constraints and the belief that systems are inflexible.
