Industry Analysis & Industry Trends
The Syrup and Flavouring Production industry manufactures beverage bases (e.g. concentrates and fountain syrups) and other flavouring syrups. The majority of industry products are used in the downstream manufacturing of finished beverages; consequently, the Soda Production industry (IBISWorld report 31211aCA) is a major buyer of industry products. Demand from downstream manufacturers has declined in recent years, as many food and beverage producers have consolidated and begun producing syrups and flavourings in-house. Nevertheless, the weakness of the Canadian dollar against the US dollar has made domestic products relatively inexpensive, expanding the industry's export market... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to enter the Syrup and Flavouring Production industry are high and increasing. First and foremost, the industry is dominated by large multinational corporations and thus new entrants will only be able to serve small local communities. Major players often write exclusive contracts with bottlers, reducing the ability of other syrup manufacturers from establishing agreements with them. These companies have well established, well recognized brands and established relationships with bottlers. In many cases, beverage base manufacturers are significant shareholders in bottling operations. While the brand owners' share in a bottler is usually non-controlling, they often have significant-enough holdings to affect management. This factor acts as a significant barrier to entry.
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